Governor Phil Murphy’s proposed FY26 budget includes $1.2 billion in new or expanded taxes that will affect nearly all New Jersey residents. These taxes include sin taxes on online gaming, cannabis, and alcohol, as well as an expanded sales tax base on various previously exempt activities. The budget also proposes increased real estate transfer taxes and a tax on deliveries passing through New Jersey warehouses.
Concerns have been raised about the impact of these taxes on businesses and residents, as well as the potential consequences if the Legislature rejects the proposed revenue raisers. The budget also includes vice taxes on internet gaming, cannabis, cigarettes, alcohol, and firearms, which have faced criticism from lawmakers for potentially harming industries and consumers.
Additionally, the budget proposes a significant increase in the realty transfer fee, which could impact housing affordability in the state. A new $20 million warehouse tax has also been proposed, causing concerns for the logistics industry and consumers who may end up bearing the cost. Overall, there are worries about the potential negative effects of these tax proposals on the state’s economy and affordability.
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