New Jersey’s Sales Tax Could Increase To 7% In Plan To Fund Public Transit System

A proposal by Senate Budget Committee Chairman Paul Sarlo could lead to an increase in New Jersey’s sales tax from 6.625% to 7%, aiming to fund the state’s public transit system.

The proposal comes as an alternative to Governor Phil Murphy’s proposed billion-dollar tax hike on approximately 600 of New Jersey’s largest businesses, which some fear could result in them leaving the state.

The sales tax increase, if enacted, would reverse a 2016 deal that reduced the tax rate; Murphy has previously expressed support for such a hike.

The proposed change aims to address NJ Transit’s funding gap, which has been exacerbated by low pandemic-related ridership and the end of COVID-19 relief funding in 2025. The transit system faces a $106.6 million budget gap despite cost reductions and a recently approved 15% fare hike.

While business lobbying groups support the sales tax increase, others argue that it unfairly burdens working-class residents, who already pay a significant portion of their income in sales tax. They suggest raising taxes on the wealthy and powerful to address the funding shortfall.

- Advertisement -


Please enter your comment!
Please enter your name here

Most Popular

Mobile MVC Coming To Jackson July 2 [LINK TO REGISTER]

The New Jersey Mobile MVC will be stationed outside...

Brookwood 4 Park To Receive Major Upgrades, Including New Play Structures, Shaded Seating Area

Woodlane Park in Jackson's Brookwood 4 development is set...

Torah Perspectives: A Yid’s Response to the Challenge of Antisemitism Today [VIDEO]

Agudath Israel of America has introduced a compelling new...

MAILBAG: Following Daas Torah Doesn’t Mean Putting Lives In Danger Is Acceptable

To the people of Lakewood, We can do better! Our...