Budget & Taxes in New Jersey

in committee · New Jersey · Senate Jan 13, 2026

S 1527: Establishes special dredging account; directs $5,000,000 of sales tax collected annually be deposited therein; directs DEP to administer account and dredging program with certain requirements.

This bill establishes a special $5 million annual fund from New Jersey sales tax revenues to finance dredging of non-port region waterways. It directly affects coastal communities where residents access homes by boat on waterways not officially designated as navigational. The Department of Environmental Protection must use the funds for dredging projects, with at least 25% allocated specifically to maintaining waterways providing boat access to coastal residences. The bill aims to address chronic underfunding for these waterways, which support the state's $27 billion tourism industry and recreational boating.

Topics ✓ Budget & Taxes

Sub-Topics Sales Tax

in committee · New Jersey · Senate Jan 13, 2026

S 872: Repeals $100,000 cap on sales and use tax exemption for certain capital improvements made by businesses participating in Urban Enterprise Zone program.

This bill repeals a $100,000 limit on sales tax exemptions for businesses in New Jersey's Urban Enterprise Zone (UEZ) program. It directly affects certified UEZ businesses (those with UZ-4 certification) by allowing them to claim full tax exemptions on all costs for property improvements, such as building repairs or renovations, without the previous $100,000 cap. The exemption applies retroactively to all qualifying property improvements made on or after January 1, 2022. This change simplifies access to tax savings for businesses seeking to upgrade their facilities within designated UEZ areas.

Topics ✗ Budget & Taxes

Sub-Topics Sales Tax Tax Incentives Tags Economic Development

in committee · New Jersey · Senate Jan 13, 2026

S 990: Expands duties of State Auditor to include performance audits at request of legislator; establishes Performance Audit Committee, consisting of eight public members, to help conduct performance audits.

This bill (S 990) expands the State Auditor’s role to conduct performance audits of state programs at the request of legislators. It directly affects state agencies by requiring unannounced audits examining a program’s economy, efficiency, and effectiveness - beyond standard financial audits. The bill establishes an 8-member "Performance Audit Committee" (appointed by legislative leaders with expertise in accounting/business) to assist the State Auditor. If the auditor deems a request unfeasible, they must provide a 30-day written explanation, with unresolved cases referred to the Legislative Services Commission for final decision.

Topics ✓ Budget & Taxes

Sub-Topics Audits & Accountability

in committee · New Jersey · Senate Jan 13, 2026

SCR 53: Proposes constitutional amendment to give $250 property tax deduction to law enforcement officers who have sustained permanent disability.

This proposed constitutional amendment would create a $250 annual property tax deduction for New Jersey law enforcement officers who have a permanent disability directly caused by their job. It would apply to the primary residence of eligible officers, including properties in cooperatives or mutual housing. Surviving spouses aged 65+ who remain unmarried and live in the same home would also qualify for the deduction after the officer's death. The Legislature would need to define "law enforcement officer" through future legislation.

Topics ✓ Budget & Taxes

Sub-Topics Property Tax

in committee · New Jersey · Senate Jan 13, 2026

S 1101: Establishes New Jersey Homebuyer Tax Credit Program under gross income tax for certain home purchases during qualified periods by first-time homebuyers.

This bill creates a New Jersey tax credit for first-time homebuyers purchasing eligible homes during specific periods. It provides a credit equal to 5% of the home price (up to $15,000) for homes used as a principal residence for 36 consecutive months. The program has a total funding cap of $100 million, allocated across four terms with separate limits for new homes and previously occupied homes. The credit is applied over three tax years, and applicants must pre-qualify through the state director's office before purchase.

Topics ✓ Budget & Taxes ✓ Housing

Sub-Topics Income Tax Procurement Tax Credits Affordable Housing Homeownership

in committee · New Jersey · Senate Jan 13, 2026

S 1568: Requires State reimbursement to municipalities of cost of disabled veterans' total property tax exemption.

This bill requires New Jersey to reimburse local municipalities 102% of the property tax costs they incur when granting total property tax exemptions to disabled veterans. It directly affects municipalities that provide these exemptions under existing law (P.L.1948, c.259), which currently absorb the cost of the exemption. Key provisions include annual certifications by tax assessors (by June 1) and county boards (by June 15) detailing the number and dollar amount of exemptions granted, with the state using this data to calculate reimbursements. The bill also amends tax reporting rules to separately track these exemptions in county tax tables without including them in the taxable property base. This ensures municipalities aren’t financially burdened by the exemption program while maintaining transparency in tax administration.

Topics ✓ Budget & Taxes ✓ Veterans

Sub-Topics Property Tax Tax Incentives

in committee · New Jersey · Senate Jan 13, 2026

S 1516: "End Hedge Fund Control of New Jersey Homes Act"; imposes tax on certain investment purchases of certain residential properties.

S 1516, the "End Hedge Fund Control of New Jersey Homes Act," would impose a 50% tax on hedge funds managing $50 million or more in pooled investor assets when purchasing single-family or small multi-family homes (1-4 units) in New Jersey. It includes exemptions for properties used as primary residences, foreclosed homes, or those built with public funding, and sets annual ownership limits that gradually decrease over five years (e.g., hedge funds could own 90% of current holdings in year one, dropping to 50% by year five). The tax applies to acquisitions after the bill’s effective date, with the Division of Taxation requiring reporting to enforce compliance. This bill directly affects large investment entities managing residential property portfolios, not individual homeowners or small landlords.

Topics ✓ Budget & Taxes ✓ Housing

Sub-Topics Procurement

in committee · New Jersey · Senate Jan 13, 2026

S 2413: Indexes various thresholds and qualifications under New Jersey gross income tax for inflation.

This bill automatically adjusts New Jersey's income tax thresholds and qualification limits for inflation starting in 2022. It affects taxpayers who qualify for specific deductions or exemptions, such as those using education savings accounts, paying student loans under state programs, or claiming tuition deductions at in-state colleges. The key mechanism requires the state tax director to annually update these thresholds using the Consumer Price Index (CPI-U), rounding to the nearest $5. This ensures the income limits for these tax benefits grow with the cost of living, without requiring new legislation each year.

Topics ✓ Budget & Taxes ✓ Education

Sub-Topics Income Tax Higher Education

in committee · New Jersey · Senate Jan 13, 2026

S 1833: Eliminates Energy Tax Receipts Property Tax Relief Aid and Consolidated Municipal Property Tax Relief Aid; establishes Municipal Property Tax Relief Fund.

This bill replaces New Jersey's existing Energy Tax Receipts Property Tax Relief Aid and Consolidated Municipal Property Tax Relief Aid programs with a new "Municipal Property Tax Relief Fund." Starting in fiscal year 2026, the fund will receive annual payments from energy utility sales taxes, corporation business taxes on utilities, and other specified sources, totaling approximately $1.455 billion in 2026 (adjusted annually for inflation). Municipalities will receive payments based on a formula considering population, income, property values, and other community factors, with a guarantee that no municipality receives less than what it received in 2024 (or 2025 for those using a state fiscal year). The bill directly affects all New Jersey municipalities by changing how they receive state-funded property tax relief.

Topics ✓ Budget & Taxes

Sub-Topics Property Tax

in committee · New Jersey · Senate Jan 13, 2026

S 877: Provides temporary corporation business tax and gross income tax credits for insourcing business to New Jersey.

This bill provides temporary tax credits to New Jersey businesses that bring operations back to the state from outside the U.S. or from other U.S. states. Businesses qualify for a 35% credit on expenses for moving operations from outside the U.S. and a 25% credit for moving from within the U.S. but outside New Jersey, provided they maintain higher full-time employee counts in New Jersey than before the move. Credits expire for tax periods ending before 2025 and can be carried forward but are recaptured if employee numbers decrease in subsequent years. The credits apply to both corporate business taxes and individual gross income taxes, limited to 50% of tax liability, and require a written relocation plan.

Topics ✓ Budget & Taxes

Sub-Topics Business Taxes Income Tax Tax Incentives

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