DePhillips introduces bill to repeal corporate transit fee, renews call for full NJ Transit audit

TRENTON, N.J. — Assemblyman Christopher P. DePhillips, a longtime critic of New Jersey’s corporate transit fee, has introduced legislation to repeal the 2.5% surcharge imposed on hundreds of large businesses, while again urging a comprehensive audit of NJ Transit.

“Governor Murphy’s administration has a notorious habit of raising taxes on corporations, breaking commitments to the business community, and relying on commuters to pay more to fund NJ Transit without first looking for inefficiencies and rooting out waste,” DePhillips (R-Bergen) said. “The driving force for this legislation, and my other proposals to lower corporate taxes and fares, is to cut the cost of living and doing business in New Jersey.”

The corporate transit fee applies to companies earning more than $10 million annually and revives the 2.5% surtax on businesses making over $1 million that expired at the end of 2024. New Jersey was one of only two states to increase its corporate tax burden in 2025. The resulting 11.5% combined base rate and surtax is now the highest in the nation.

“While neighboring states are realizing the benefits of lowering their corporate taxes, it’s imperative New Jersey does the same to support a competitive business climate and a healthy economy,” DePhillips said.

DePhillips’ new bill (A6007), introduced Monday, seeks to eliminate the corporate transit fee entirely. He is also sponsoring legislation (A1331) to gradually reduce the state’s corporate business tax rate to 2.5% over four years, which would place New Jersey among the lowest in the country.

“After increasing state spending over 60%, the Murphy administration shouldn’t burden businesses and riders with the highest costs in the nation,” he said. “They are already paying too much for too little accountability and reliability. It’s time to cut them a break.”

NJ Transit’s operating budget includes automatic annual 3% fare hikes that began in July 2025, following a 15% increase implemented July 1, 2024—moves DePhillips has strongly opposed. He introduced a bill (A5569) this year to halt the latest automatic increase.

Federal transportation data shows NJ Transit generates more fare revenue than any agency except New York’s MTA. A separate commuter advocacy analysis found NJ Transit charges the highest prices among nine major commuter railroads surveyed.

As a member of the Assembly Transportation Committee, DePhillips has repeatedly called for audits of NJ Transit’s spending and for bipartisan legislative hearings.

“NJ Transit does not need more money from businesses or riders who have little or no control over its budget, operations, and service levels,” he said. “What the agency needs in 2026 is a comprehensive audit, a restructuring of operations, and a decade-focused strategy to transform the transportation system. The New Jersey taxpayers and mass transit commuters deserve no less.”