7-24-2023 11:57am

Governor Murphy Battles New York's Congestion Tolling Scheme, Pursues Legal Action

Newly signed bipartisan legislation aims to keep New Jersey taxpayer dollars within the state, taking on the unjust taxation of New Jerseyans by other states.

In an effort to protect the interests of New Jersey residents, Governor Phil Murphy announced a lawsuit against the U.S. Department of Transportation (USDOT) and the Federal Highway Administration (FHWA). The lawsuit, filed on July 21, 2023, seeks to halt New York's proposed congestion tolling program, deeming it an unreasonable burden on New Jersey commuters.

The suit was filed in the U.S. District Court for the District of New Jersey, stating that the USDOT and the FHWA have violated the National Environmental Protection Act and the Clean Air Act. These laws mandate a comprehensive environmental impact review for projects of this magnitude and scope.

Governor Murphy and his administration have been staunch advocates for the rights of New Jersey commuters, transportation agencies, businesses, and residents ever since the Metropolitan Transportation Authority (MTA) and New York City and State agencies first proposed the congestion pricing plan.

"As a unified front, we stand against this reckless scheme and reaffirm our commitment to combat the unjust taxation of our hardworking residents by other states,” stated Governor Murphy.

In a further bid to protect New Jerseyans from unfair taxation, Governor Murphy has signed into law S3128/A4694. This bill brings New Jersey's tax code in line with New York's and allows the taxation of remote employees who live out of state but work for New Jersey companies.

The bill also includes provisions for tax credits for New Jersey residents who dispute aggressive tax policies imposed by other states. A $35 million grant program has been created to encourage companies primarily operating outside the state to open offices in New Jersey. This move ensures tax dollars are directed to the correct jurisdiction.

Several lawmakers, including Senators Bob Menendez, Joe Lagana, and Jon Bramnick, and Assembly Speaker Craig J. Coughlin, have voiced their support for Governor Murphy's actions and the newly signed legislation. They collectively stand against New York's 'convenience of the employer' rule and the proposed congestion pricing plan, viewing these as unjust impositions on New Jersey residents and workers.

Various industry leaders, such as Tom Bracken, President & CEO of the New Jersey Chamber of Commerce, and Michele Siekerka, NJBIA President & CEO, have also commended the actions taken by Governor Murphy and the state legislature, hoping this might bring much-needed tax fairness between New Jersey and New York.

As the legal battle unfolds, the unified voice of New Jersey's leaders and citizens sends a clear message: New Jersey is taking a stand against unfair taxation and is open for business.