NJ Transit funding: New Jersey has tentative tax agreement with 600 corporations to help fund mass transit [Video]

NEW JERSEY (WABC) — New Jersey has a tentative agreement with the state’s most profitable companies to temporarily pay higher taxes to fund NJ Transit.

Under the plan, the 600 corporations in the state that make at least $10 million a year in profits will pay a 2.5% tax on all earnings for five years.

In return, the state will not pursue restoring the sales tax to 7% from to 6.625%, a major point of contention for the businesses, who strongly oppose increasing the corporate tax rate.

Both the “transit tax” and a final state budget still need to be approved by the Legislature next week. The budget expires June 30.

The potential deal comes amid a “nightmare” week for NJ Transit and Amtrak, which saw a string of service disruptions adversely impact rail commuters.

NJ Transit and CEO Kevin Corbett released the following statement Friday afternoon, and called the issues “unacceptable.”

“We are as frustrated as our customers, and the frequency and impact these issues …