New Jersey Tax Crackdown Targets Owners, Seizure Fears Rise
What Is the New Jersey Tax Crackdown? At its core, the New Jersey tax crackdown is a broad state and local enforcement and revenue response to weakening business tax collections, expanding compliance controls, and a series of tax law changes affecting corporations, employers, investors, and high-income households. Recent data shows why pressure intensified. August 2025 Corporation Business Tax collections fell to negative $38 million, while BAIT dropped to $16.1 million. Through the first two months of FY2026, combined CBT and BAIT collections cratered 91% compared with the same period in FY2025. Combined business taxes plunged 282 percent from a year earlier, and early FY 2026 results remained sharply lower. Enforcement Trends and Expanding Burdens The response includes stronger municipal payroll tax administration under Bill S4219, tighter reporting, and revised corporate tax rules. Other changes affect GILTI deductions, Finnigan sourcing, charitable deductions, NOLD and DRD calcula...