New Jersey has a new $56.7 Billion State Budget. What Does it Include? An Explainer

Hours after being approved by both chambers of the New Jersey Legislature, Governor Phil Murphy on Friday signed the $56.7 billion state budget for Fiscal Year 2025 into law.

In addition to millions of dollars for nonpublic schools and transportation, the budget also contains many other items of importance, including new taxes and fees, as well as other programs which may be beneficial to families in the state.

Here is a brief roundup of some of the highlights:

ANCHOR/StayNJ Property Tax Relief

For a fourth straight year, the ANCHOR program is set to receive $2.2 billion to fund the tax relief program, providing up to $1,750 to 1.3 million homeowners and up to $700 to over 700,000 renters to help offset property taxes.

The Stay NJ Property Tax Credit Program was allocated $220 million for the 2025 Budget. The program is set to begin in 2026.

Corporate Transit Fee

The Corporate Transit Fee is a new 2.5% tax on the companies headquartered in the state that make at least $10 million in profits. This tax is intended to support NJ Transit, which is facing a $766 million financial shortfall but will not be allocated to NJ Transit until 2026. The tax is retroactive to January 1 and is expected to generate about $1 billion annually before it expires five years after enactment.

The tax is in addition to fare hikes at the cash-strapped transit agency.

Electric Vehicle Tax Exemption Phase-Out

The budget also includes a plan to phase out the Electric Vehicle Tax Exemption. Until now EV buyers in the state were exempted from paying the state’s sales tax but going forward, will have to pay a 3.3% sales tax beginning on October 1, 2024.  Starting July 1, 2025, all electric vehicles sold will be subject to New Jersey’s sales tax of 6.625%.

Nurse Visitation Program for New Mothers:

The budget includes $23 million to expand New Jersey’s universal home visitation program for new mothers from 2,200 families this year to 16,700 families in the next year, as TLS first reported earlier this year, will now include Ocean County.

Random Fees Back in Place:

This may not be so significant, but many state fees will be reinstated, after being waived for the last two years, including the fee to enter state parks and the tax on back-to-school items.

Lakewood Township:

Locally, Lakewood Township was allocated $7 million to help with the municipal budget and ShoreTown stadium (formerly Blue Claws) has received $4.2 million.

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