TRENTON, N.J. – A new Republican-backed bill to slash New Jersey’s sales tax to 6 percent has set off a political clash, with Assemblywoman Dawn Fantasia accusing Democratic leaders and New Jersey Governor-Elect Mikie Sherrill of quietly plotting a return to the 7 percent rate long favored by Gov. Phil Murphy.
She says that Governor-elect Mikie Sherrill is reportedly entertaining that proposal.
The measure, Assembly Bill A6006, was introduced by Assemblymen Christopher DePhillips and Al Barlas, with Fantasia as a prime sponsor.
The bill would roll back the state’s 6.625 percent sales and use tax to an even 6 percent beginning January 1, 2026.
The legislation is part of a broader Republican initiative to reduce taxes across the board, an effort party leaders say is aimed at giving residents relief from what they call New Jersey’s chronic overspending and high cost of living.
“The state’s finances are a mess,” Fantasia said in a post Tuesday, criticizing what she described as years of fiscal mismanagement. “When you spend first and think never, it always catches up.”
File this under “things everyone already knew”: the current governor’s dream was to return the sales tax to 7%. Gov. Murphy has tried to shove that little gem into his proposed budgets.
When you’re drunk on spending and the federal COVID relief dollars dry up, they always run back to “old reliable.” Now, the same progressive groups that never missed a chance to promote bringing NJ’s sales tax back to 7% (policy outfits on the left that have publicly endorsed this hike for years) are now parked inside Gov-elect Sherrill’s transition.
No surprise that the 7% chatter is back during lame duck. This conversation should be had in the open, not behind closed doors. They pushed the fairy tale that Jack Ciattarelli wanted a 10% sales tax. Total lie. In fact, Republicans introduced a bill to CUT the sales tax to 6%: part of a larger plan to lower taxes across the board.
The state’s finances are a mess, and that’s what happens when you spend first and think never. It always catches up.
The bill also includes technical changes to local hotel and occupancy fees to align with the reduced rate and provides provisions for contracts that cross over the effective date of the change.
Assemblyman DePhillips, representing parts of Bergen, Essex, and Passaic counties, has long pushed for lower taxes, arguing that New Jersey’s economic competitiveness depends on it. “Families are leaving because they can’t afford to stay,” he said earlier this year while previewing the proposal.
Fantasia’s comments came amid renewed speculation that Gov. Murphy and his allies may use the lame duck session to advance a return to the 7 percent rate — a move the governor has attempted before. “File this under ‘things everyone already knew,’” she wrote on social media. “The current governor’s dream was to return the sales tax to 7%. Gov. Murphy has tried to shove that little gem into his proposed budgets.”
According to Fantasia, several progressive policy groups that supported reinstating the higher rate are now advising Sherrill’s transition team, suggesting the idea could gain traction after the change in administration.
Sherrill, a Democrat and former congresswoman from Morris County, has not publicly commented on the issue. However, her incoming administration faces mounting fiscal pressure as federal pandemic relief funds expire and the state’s revenue outlook tightens.
Progressive organizations have previously argued that restoring the 7 percent rate would stabilize the state budget and support essential services.
With Murphy’s term ending and lawmakers preparing for a post-election legislative sprint, the question of whether to raise or cut the sales tax has reemerged as a defining battle in Trenton’s lame duck session — one that could shape New Jersey’s fiscal trajectory for years.
Neither Governor Phil Murphy nor Mikie Sherill has responded to Fanstasia’s sales tax claim.