Assembly Republicans want to cut income taxes as part of the new state budget, part of a four-pronged plan for responding to an unprecedented surge in state revenues and surplus.
State tax collections are growing at an unprecedented rate and a portion of the windfall appears likely to be used to provide more direct tax relief to residents.
In the end, it took a worldwide pandemic – plus a plan for $500 checks to middle-class families in an election year – to get a millionaires tax back on the books in New Jersey.
State leaders have decided to delay adoption of New Jersey’s 2021 state budget by three months, allowing time to assess the economy and state finances after the worst of the coronavirus pandemic subsides.
Gov. Phil Murphy hasn’t yet said what changes will be made in the overhauled 2021 state budget, though he has indicated a few times that he’d still like it to include an increase in the millionaires tax.
State income tax refunds will start being issued March 1, even for people who file early, to give the state enough time to gather the information needed for its anti-fraud measures.