UPDATE: No Sales Tax Hike in New Jersey in New Budget Agreement

Consumers in New Jersey will not see the state’s sales tax rise under a new tentative agreement between Governor Murphy and top Legislative leaders.

As previously reported, key lawmakers in Trenton had discussed a possible sales tax hike as another source of revenue for the Treasury’s coffers, as negotiations continued in the statehouse ahead of the June 30 deadline to pass the Fiscal Year 2025 state budget.

The idea to raise the sales tax was in reaction to a new 2.5% additional surtax on businesses with more than $10 million in profits, which Governor Murphy included in his proposed budget as an option to provide funding for the cash strapped NJ Transit system, which would be in addition to planned fare hikes.

However, under the new deal, which was first reported by Politico New Jersey, the new surcharge on corporations earning above $10 million in profits annually, would be in place for the next five years, retroactive to January 1, 2024.

The last time the sales tax was raised was in 2006, under then Governor Jon Corzine, and it took a government shutdown to achieve that deal. Former Governor Chris Christie lowered it slightly under a larger deal with the Legislature that also increased the gas tax while eliminating the estate tax.

The Fiscal Year 2025 budget must be approved by the Legislature and signed by the governor prior to the July 1 deadline. Failure to sign a budget by the deadline will result in a government shutdown until a budget is signed. Such a scenario last occurred in 2017 and lasted for three days.

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  1. Any tax imposed on a company is just passed on to the customer as a higher price. Therefore your total taxes are increased via higher prices. Understand???

    • Duh, Democrats are stealing your money either way, this way they get the stupid to keep voting for them by blaming the companies for price increases with the help of the corrupt media.

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