TRENTON, N.J. (AP) - New Jersey has a new $37.4 billion budget that raises taxes on the very wealthy and some businesses. It also provides some new and expanded tax breaks and increases spending on schools and mass transit.
Gov. Phil Murphy and the Democrat-led Legislature reached an agreement on the spending plan just hours before a midnight deadline Saturday. The Democratic governor signed the legislation late Sunday night.
The deal raises income taxes on those making more than $5 million. It also hikes taxes on businesses earning over $1 million.
The new budget also extends the state sales tax of 6.625 percent to lodging obtained through businesses like Airbnb. And it imposes a 50-cent per-ride tax on ridesharing services.
Income-tax filers who itemize deductions will now be able to deduct up to $15,000 in property taxes instead of just $10,000. The budget also increases the earned income tax credit for low-income filers.
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This story has been corrected to show the state sales tax is 6.625 percent, not 6.25 percent.
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