Republicans say “we told you so” as 7% chatter returns to Trenton

New Jersey’s lame duck legislative session has a reputation for surprises — and rarely the pleasant kind. Veterans of Trenton politics know these post-election weeks are when controversial ideas resurface, often pushed through by outgoing lawmakers with little political fallout. And this year, one rumor is dominating the chatter: a possible return to a 7% sales tax.

Sales tax rumors swirl around Sherrill and Murphy

According to multiple sources and public accusations from Republican Assemblywoman Dawn Fantasia, Governor-elect Mikie Sherrill has been quietly urging Democratic leaders to consider raising the current 6.624% sales tax back to 7% — and possibly expanding it. To continue the record spending spree started by Gov. Phil Murphy, Sherrill apparently wants the fiscal boost but not the political stain of launching her administration with a tax hike, leaving lame duck as the perfect window for action.

Fantasia didn’t mince words, framing the move as a return to a long-standing dream of Gov. Phil Murphy. Murphy has repeatedly tried to restore the 7% rate or expand the sales-tax base, though Democrats blocked those proposals in the most recent budget cycle.

Republican Assemblyman Paul Kanitra warned the increase will cost the average New Jersey resident more than $250 per year.

Fiscal pressures mount as federal aid dries up

Progressive policy groups — many of which have publicly supported restoring the higher rate — are now advising Sherrill’s transition team, adding fuel to the speculation. Their argument: the state’s finances need stabilizing as pandemic-era federal dollars disappear and revenue projections tighten.

Republicans, meanwhile, are accusing Democrats of hypocrisy. Sherrill hammered her GOP opponent Jack Ciattarelli during the campaign by claiming he’d raise the sales tax, a charge Republicans called false. In fact, GOP lawmakers recently introduced a bill to cut the rate to 6% as part of a broader tax-relief package.

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A defining showdown for New Jersey taxpayers

A spokesperson for Sherrill told Politico talk of the governor-elect supporting a hike in the sales tax was "nonsense."

Last month, Senate President Nick Scutari and Assembly Majority Leader Lou Greenwald dismissed talk of revisiting the sale tax.

Still, the rumors persist and with the legislature sprinting toward January, Trenton insiders widely expect an intense fight over whether to hike or reshape the sales tax — a decision that could shape New Jersey’s fiscal future for years.

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