Bill > A4009

Introduced Session

This bill would extend the existing 2.5 percent corporation business tax (CBT) surtax until December 31, 2025 and requires that the amount collected from the surtax be dedicated to specific purposes. The CBT surtax is currently imposed on taxpayers that are not public utilities and have allocated taxable net income in excess of $1 million. Taxpayers are not allowed to apply tax credits against surtax liability, except those credits from installment payments, estimated payments with a request for an extension of time for filing a return, or overpayments from prior privilege periods. In the event that the federal corporate income tax rate is increased to its pre-Tax Cut and Jobs Act level (35% of taxable income), the surtax will be suspended at the end of a taxpayer's current privilege period. Under current law, the surtax is set to expire on December 31, 2023. The bill would allow the surtax to remain in effect beyond December 31, 2023 by extending its duration an additional two years. Pursuant to the provisions of this bill, the surtax would instead expire on December 31, 2025. The bill would also require that the revenue annually derived from imposition of the surtax be credited to a newly created special account in the General Fund that will be dedicated to supporting the provision of public transportation services, the completion of public transportation projects, the State's public school system, and reimbursements to State employees for all or part of their contributions made toward the cost of health care benefits provided by the employer. The name of this special account would be the "Statewide Public Transportation, Public Education, and Public Employee Health Benefits Improvement Account."

AI Summary

Committee Categories

Shavonda Sumter (D)*, 

Introduced, Referred to Assembly Commerce, Economic Development and Agriculture Committee (on 03/07/2024)

Official Document