the staff of the Ridgewood blog
TRENTON NJ, for the second consecutive year, New Jersey Governor Phil Murphy is seeking approval from state lawmakers of a massive $1 billion in new taxes and fees as part of his latest budget proposal. The sweeping tax increases come as the state’s annual budget inches closer to a record-setting $60 billion.
The proposed fiscal year 2025 budget outlines hikes affecting everything from alcohol and marijuana to drone usage and online gambling, with revenue aimed at supporting Murphy’s $58 billion spending plan.
💼 What’s in Murphy’s 2025 Budget Proposal?
Governor Murphy, a second-term Democrat, unveiled his comprehensive tax strategy in new budget documents earlier this week. Below is a breakdown of the key proposed tax and fee increases:
🔻 Proposed Sales Tax Changes
Murphy’s plan would expand the 6.625% sales tax to a wide range of new items and services, including:
-
Participatory sports
-
Interior design services
-
Vehicle trade-ins
-
Digital services
-
Second-hand airplane sales
-
Horse training
-
Complimentary meals, hotel rooms, and event tickets
The partial sales tax exemption and $20,000 cap on boat and vessel sales would also be repealed. These changes are expected to generate $270 million in additional revenue.
🍷 Alcohol Tax Increase
A 10% increase in the state’s alcohol excise tax is on the table. This applies to beer, wine, spirits, mead, vermouth, and hard ciders. The anticipated revenue? Around $18.5 million annually.
🎲 Online Gambling & Sports Betting Tax Hikes
Murphy is calling for significant hikes on:
-
Online gambling: from 15% to 25%
-
Online sports betting: from 13% to 25%
These changes are projected to generate $400 million in additional tax revenue.
🏠 Mansion Tax Overhaul
Murphy’s budget would increase the real estate transfer fee (commonly referred to as the “mansion tax”) as follows:
-
2% tax on sales over $1 million
-
3% tax on sales over $2 million
This is expected to raise $317 million in fiscal year 2025.
🚬 Tobacco, Vaping & Marijuana Taxes
The proposal includes:
-
Cigarette tax increase from $2.70 to $3 per pack
-
Liquid nicotine tax increase from $0.10 to $0.30 per ml
-
E-liquid container tax increase from 10% to 30%
-
Marijuana excise fee increase from $2.50 to $15 per ounce
-
New $30 per ounce tax on intoxicating hemp products
Combined, these measures are expected to raise over $80 million.
🚛 Warehouse Traffic & Drone Fees
Murphy proposes a $2 per truck trip warehouse fee to address traffic and infrastructure concerns related to warehouse development. This fee could generate $20 million.
He also plans new taxes on drone usage and services, with details to be finalized.
🔫 Gun and Ammunition Fees
The governor is also revisiting previously rejected proposals to increase:
-
Firearm permit costs
-
Retailer licensing fees
-
New excise taxes on firearms and ammunition
These changes could bring in $8 million, pending legislative approval.
🗳️ Political and Election-Year Implications
Murphy’s tax-heavy budget proposal arrives in a critical election year, with all 80 seats in the NJ Assembly up for re-election. Although the legislature is Democrat-controlled, some lawmakers—both Republican and Democrat—have voiced concern over the scope and timing of the proposed tax hikes.
Polling shows New Jersey voters rank the economy, inflation, and taxes as their top concerns heading into 2025.
Lawmakers have until July 1, the start of the new fiscal year, to approve, amend, or reject Murphy’s proposals.
🧾 What’s Next?
While the budget is still under review, residents and business owners across the state are watching closely. If enacted, these changes could significantly affect the cost of living, consumer behavior, and New Jersey’s economic outlook.
Tell your story #TheRidgewoodblog , #Indpendentnews, #information, #advertise, #guestpost, #affiliatemarketing,#NorthJersey, #NJ , #News, #localnews, #bergencounty, #sponsoredpost, #SponsoredContent, #contentplacement , #linkplacement, Email: Onlyonesmallvoice@gmail.com
November could not come soon enough.
why?
We are RICH and STUPID
So we’ll blindly vote him or some worse Democrat back into office.
tax increases everywhere
Sooo we have to pay tax on a lease/purchase of a new vehicle then pay another tax when we trade it in to get another new vehicle ????
No.
Now you get credit for the trade-in so you only pay sales tax on the difference between the slaes price and the trade..
His proposal would tax the whole price and disregard the value of the trade in reducing your taxable out of pocket.
This guy is a moron
NY tried the sales tax on airplanes, and the owners simply moved them to Oxford CT thus depriving local business from taxable revenue on hangars and repairs
The pilots simply fly to Teterboro to pick up the passengers, thus creating extra noise
Even Massachusetts has zero sales tax on new and used planes
again… murphy is an out-of-touch tax-and-spend democrat who refuses to cut spending
It’s a use tax.
sales and use tax are the same. Call it what you want. Its the SAME. It comes out of checkbook of the resident
As usual, murphy goes after the law abiding gun owners while coddling criminals.
Remember the new law that protects ex-cons from landlords asking questions about their criminal history
This place is going in the toilet and should be named ‘east california’
It’s no wonder everything a democrat touches goes to shit. We need to drain the swamps around here. Way to many swampy creatures
Governor Horseteeth is a clown.
Exactly why I moved out of Jersey..My property taxes are 2k a year now..I don’t need a permit to legally carry a gun..Jersey is California’s baby sister..
I believe Murphy has referred to or dreams of New Jersey as the “California of the East Coast!” He can’t be booted out of here fast enough! He lives in his rich boy world, and has no clue nor cares about anyone else!
Maybe we should stop being a sanctuary state and paying for everything and start cutting back on what the state gives money . AC was going to pay for everything when it was started and nothing good ever came from it except if you had your hand in the till. NJ needs a Elon Musk to clean up State Government. I think we all would be surprised at the waste and fraud in NJ.