Trenton, NJ – Senators Latham Tiver and Joe Pennacchio have introduced legislation to suspend the sales and use tax on electric bills. The proposal aims to alleviate the financial strain from rising energy costs for New Jersey families.
Tiver and Pennacchio seek to eliminate the Societal Benefits Charge for one year, a measure expected to save households significant amounts on energy expenses. The initiative builds on a similar bill introduced in May which was not voted on.
Governor Murphy has defended the continued tax collections as necessary for the Board of Public Utilities. The State anticipates $1.15 billion in tax revenue from energy bills in Fiscal Year 2026, reflecting a 15.7 percent increase, approximately $156 million more than the previous year.
Tiver expressed his discontent with the administration’s priorities, emphasizing the need for tax relief in light of the current affordability crisis. He stated, “Our plan puts taxpayers first by suspending unnecessary sales tax and SBC collections for the entire year.”
The proposed legislation is planned to go into effect on January 1, 2026. Pennacchio noted that while families await relief, a previous $100 measure was insufficient compared to their current proposal.