Jersey City Payroll Tax Measure Passes Assembly

The State Assembly Thursday approved by a 46-28-0 vote a bill (A4163) to allow municipalities with populations over 200,000 to impose a 1% employer payroll tax.

The bill targets Jersey City. Only Newark and Jersey City have populations that large, and Newark already has a payroll tax.

Senate President Steve Sweeney, who has been advocating for Jersey City and other communities that haven't paid their local fair share in school funding to ramp up their payments, supports the bill. The tax would not apply to public employers, and exemptions could be made for workers who live in the municipality.

The upper chamber’s companion measure (S2581) is pending consideration in full Senate after being amended on the floor earlier this month, and again on Thursday.