In our spotlight on Business Report tonight, high taxes, the cost of doing business here and lowering Both are among the top concerns of business owners in New Jersey.

That's according to the N.J. Bia's 66th Annual Business Outlook Survey, which reported the findings based on 620 valid response hours from its members, where most about 66% were small businesses that had fewer than 24 employees.

The survey comes amid the backdrop of the 2025 gubernatorial race to replace Governor Murphy and is seen as a wish list of sorts for what they'd like the next administration to prioritize.

For more on what's on this wish list, I'm joined by Michel Siekerka NJBIA's President and Chief Executive Officer.

Michel, good to see you.

Let me start with the most glaring one.

Why do you think property taxes have consistently been a top priority for your members when they're responding to this survey year in and year out?

Well, when it comes to property taxes, businesses are left at the curb despite the fact that they pay about 50% of property taxes across the state.

So what do I mean by that, Brianna?

We have some property tax relief programs.

Anchor is a program for homeowners and renters, which is some relief for them.

Wonderful.

They get a check each year to get a little bit of rebate, but business is not included in that.

And then everybody's talking about state New Jersey next year, whether we have money for that or not, that's going to be the senior freeze program where they'll be rebates for seniors for property tax.

Again, business left out and let me repeat, they pay about 50% of property tax across the state of New Jersey.

So I'm imagining then that that's one of the primary factors that led it was 74% of the folks, the business owners who responded, who said affordability is worse this year than it was last year was was property taxes one of the main factors in that?

What else was included?

Well, it's a host of things when it comes to affordability is absolutely a mandates, in particular labor mandates.

Is the cost of compliance in the state of New Jersey.

We are highly regulated and mandates on business.

This is why our mantra every dollar counts for business means so much because it truly does.

What's been the impact, Michele, of health care costs and the corporate tax rate for your members?

So those came in sadly highly ranked as well.

Health care comes up at the top.

You know, every year we know that this continues to increase many years in double digits.

And, of course, that impacts the bottom line for business.

And if they have to use more money toward health care, they have to cut somewhere else or increase the price of their products and services.

So that concerns them because businesses want to provide good health care for their workforce.

It's how they attract a good workforce by providing a robust benefit package.

Right.

The other issue, the corporate business tax.

Oh, I just think businesses, you know, and no pun intended, off the rails regarding the corporate transit fee, this was just a such an unfair hit to the business community in this past year's budget.

And you see that ringing loud and clear.

Now, in this survey.

What do you anticipate will be the biggest challenges for the next governor in order to, you know, spur growth, promote businesses, get hiring going?

What do you think they're going to face, essentially?

Right.

Well, they are facing a fiscal cliff and we see that because Governor Murphy just put out a mandate to his administration to find ways to cut costs going into 2025 and to freeze spending.

Now, we've been saying that this is on the way for the last few years.

We knew that a $56 billion budget is unsustainable for the future.

And yet coming into this last budget cycle, our policymakers, as you know, sounded of their own, will still, again, to increase the budget.

So they're going to be very challenged.

And look, we can't tax our way out of this anymore.

We're the most highly taxed state in the nation for property tax, income tax, sales tax, corporate business tax.

I could go on and on.

Were there particular industries, you know, in the survey that felt more of a strain than others?

And I'm thinking, of course, about the small businesses but but a lot right.

Reported you know being hit by inflation and supply chain costs.

But were there industries that felt more of a strain than others?

I have to say it was really across the board.

You know, the big challenges.

Yes.

While the while inflation seems has settled down, it's still a bit at the heels of these businesses causing these businesses to have to increase the cost of their products and services, as again, we always suggest that's going to be the result of this, right?

You know, supply chain was difficult for them to now think about manufacturing as their costs go up in order for them to get their products and services.

They can only pass that off in other ways.

And oftentimes that's to increase their own products and services as a result of that business is for less profit.

This past year, some even reported losses for the first time.

Hmm.

And of course, I know you all are hoping that lawmakers will take these findings into serious consideration.

Michel Siekerka thanks so much for your time.

Thanks so much for the opportunity.