Treasurer cites previous corporate tax overpayments for softness this year

TRENTON – State Treasurer Andrew Sidamon-Eristoff believes the “soft” corporate business tax revenues that led to the state projecting lower numbers from this point on could largely be because of overpayments in the prior year.

“It appears in a number of instances, mayor taxpayers overpaid their 2010 liabilities,” he told the Assembly Budget Committee on Tuesday. “These companies applied these overpayments to their 2011 tax bills.”

The state’s projection on the CBT was reduced by $213 million for fiscal year 2011, from $2.32 billion to $2.1 billion. In fiscal year 2012, the projection has fallen $169 million, from $2.43 billion to $2.26 billion.

The treasurer added that New Jersey’s high corporate business tax rate – currently at 9 percent – doesn’t help matters, especially when compared to neighboring states, all of which have lower rates.

Connecticut’s rate is 7.5 percent, Delaware’s is 8.7 percent, New York is at 7.1 percent and Maryland’s rate is 8.25 percent.

  Treasurer cites previous corporate tax overpayments for softness this year