Sweeney, Vitale Stress Legislature’s and Governor’s Intent that CBT Surcharge Does Not Apply to Insurance Industry

TRENTON – Senate President Steve Sweeney and Senate Health Committee Chair Joseph F. Vitale issued the following statement today following the Senate’s vote to concur with the Governor’s conditional veto of S-4202:

“We feel compelled to go on record to express the clear intent of the Legislature that the surcharge on the Corporation Business Tax is intended to apply only to companies currently paying the CBT and not to the insurance industry, which is subject to a separate insurance premiums tax.

“We expressed our deep concern directly to the Governor about ambiguous language in the conditional veto message that could apply to the insurance industry and were assured that it was not his intent to apply the CBT to the insurance industry.

“We applaud the agreement with the Governor to ensure that insurance premiums will not increase as a result of this bill.  By not extending the surtax to the insurance industry, we are preserving the benefits we enacted by requiring the individual health insurance mandate in New Jersey and creating the excess (reinsurance) fund that covers catastrophic health care claims.”