Governor Phil Murphy unveiled his final budget plan for New Jersey, proposing record spending of $58.1 billion with significant tax relief measures and targeted revenue increases.
Major Tax Relief Initiatives
The budget allocates $4.3 billion for property tax relief, including substantial benefits for seniors under the Stay NJ program, who could receive up to $6,500 in property tax cuts. Families will benefit from sales tax exemptions on essential childcare items including cribs, car seats, strollers, and sunscreen.
Revenue Measures Target Luxury and Discretionary Spending
The proposed budget focuses on revenue increases in several key areas:
- Hiking rates on internet gaming and online sports wagering to 25%
- Increasing realty transfer fees for property purchases over $1 million. Under the proposal the rate would be 2% at $1 million and 3% for purchases over $2 million
- Raising the social equity excess fee on certain cannabis sales to $15 per ounce from $2.50 and imposing the fee on intoxicating hemp products
- Lifting the cigarette tax rate by $0.30 per pack
- A new excise taxes on ammunition, firearms, and drones
For complete details on the Governor’s budget proposal, visit the official press release. If you have questions on State and Local Tax matters, please contact the HBK SALT Advisory Group at hbksalt@hbkcpa.com
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