Payroll Tax Gets Council Approval in Jersey City

The Jersey City Council last week approved an ordinance imposing a one percent tax on the payroll of out-of-town employees starting January 1. Mayor Steve Fulop is expected to sign the measure.

The move is designed to make up for lost revenue under a new school funding law.

Municipalities are generally not authorized to impose payroll taxes, but Governor Murphy and the Legislature enacted a law this summer making an exception for Jersey City. Newark is the only other municipality that can tax payrolls.