TRENTON, NJ — Republican State Senators Joe Pennacchio (R-26) and Latham Tiver (R-8) are calling on Governor Phil Murphy to suspend state taxes on electricity bills, citing increased pressure on households and businesses from rising energy costs.
The lawmakers issued a joint statement Wednesday criticizing Murphy’s recently announced executive actions addressing utility prices, arguing the measures do not go far enough.
“As energy prices continue to climb, New Jerseyans are being squeezed harder than ever,” the senators said. “Our legislation would provide real, immediate relief by suspending the sales and use tax as well as the Societal Benefits Charge on electric bills.”
Pennacchio and Tiver have introduced bill S-4398, which proposes temporarily removing both the sales and use tax and the Societal Benefits Charge (SBC) from electric utility costs to reduce monthly energy expenses for residents and small businesses.
The SBC, a longstanding surcharge on New Jersey utility bills, funds clean energy programs and low-income assistance. Opponents say it adds to the financial strain on consumers as overall energy rates rise.
Senators say Murphy’s policies drive current energy costs
The senators also pointed to state-level energy policy as a root cause of high costs.
“The truth is energy is unaffordable because of the policies pushed by the very same people, like Governor Murphy and fellow Trenton Democrats, who are now pretending to fix the problem,” they said.
They argue that tax relief would provide more direct economic relief than regulatory or policy changes proposed under Murphy’s executive actions.
S-4398 has not yet advanced in the Legislature, and Governor Murphy has not indicated whether he would support the proposed suspensions.