New Jersey Sales Tax Rumors Spark Debate as State Prepares for Leadership Transition

Rumors persist that New Jersey lawmakers will raise the sales tax to 7%. The legislature sometimes passes unpopular bills between elections and Gov.-elect Mikie Sherrill’s January inauguration.

Republican members worry that state Senate and Assembly Democrats may hike the sales tax in this lame-duck session. New Jersey has one of the highest sales taxes at 6.625 percent. State budgets and public services depend on this money.

Political tax increases have been discussed, but a Democratic parliamentary source indicated they are still early. The insider said the plan may be considered, but not assured. Democratic senators and assemblymen and Governor Phil Murphy’s administration haven’t commented.

Republican lawmakers said Democrats’ recent victories will force them to raise taxes before Sherrill becomes governor. But Sherrill’s camp stated the governor-elect opposes sales tax increases. A Sherrill spokesperson said she will prioritize residents over tax rises.

Republican plans to decrease state sales taxes are another option. A 6% property tax drop would benefit New Jersey residents, who pay some of the highest rates. The Assembly and Senate have not scheduled hearings for the legislation, therefore its future is undetermined.

While worrying about the budget, New Jersey politicians discuss sales tax adjustments. Analysts say the state may face financial problems if things don’t improve. Local residents and officials are closely monitoring the tax debate and seeking open, honest conversation.

Many families care about the state’s sales tax since it affects everyday prices and the economy. New Jersey residents and companies may be affected by proposed changes.

Sources:

• New Jersey State Legislature official website

• Governor Phil Murphy official website

• Tax Foundation – State Sales Tax Rankings