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Bill

JB

Bill

S 953

Eliminates minimum corporation business tax on New Jersey S corporations.

2026-2027 Regular Session Introduced by Jon Bramnick

Bill eliminates New Jersey's $500 minimum annual tax on S corporations, reducing fixed compliance costs for pass-through business entities.

Introduced in the Senate, Referred to Senate Commerce Committee
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Bill Summary · S 953

Legislative bill overview

S 953 would eliminate the minimum corporation business tax (currently $500) that New Jersey S corporations must pay annually, regardless of profitability. This is a targeted tax reduction affecting pass-through business entities structured as S corporations under federal tax law.

Why is this important

S corporations are common structures for small to mid-sized businesses, and the minimum tax represents a fixed compliance cost. Eliminating it could reduce administrative burden and tax liability for these businesses, though the actual fiscal impact depends on how many S corporations currently operate in New Jersey and pay this minimum.

Potential points of contention

  • Revenue impact: The bill would reduce state tax revenue, with the magnitude depending on S corporation filing numbers; the state would need to account for this fiscal loss
  • Competitive fairness: Other business entity types (LLCs, partnerships, C corporations) may have different tax structures, raising questions about whether this change creates inequitable treatment across business forms
  • Scope creep concern: Targeted tax eliminations could set a precedent for further reductions, potentially fragmenting the corporate tax base and making future budgeting more difficult

Compiled from official sources — confirm details with the bill’s official record.

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