TRENTON, NJ – Assemblyman Christopher DePhillips is calling on Governor-elect Mikie Sherrill to publicly deny reports that her transition team and Democratic leaders in Trenton are considering raising New Jersey’s sales tax to 7 percent before she takes office.
DePhillips, the Assembly Republican Conference Leader, said the rumors circulating around the State House warrant an immediate on-the-record response from Sherrill herself, not her spokesperson.
“Where there is smoke, there is usually fire,” DePhillips said. “Instead of hiding behind staff, she needs to personally kill the sales tax hike rumors by going on record. Struggling New Jersey residents deserve a commitment that her transition team and future administration will reject increasing taxes.”
Republican leader pushes for sales tax cut instead
DePhillips recently introduced legislation (A6006) that would cut the state’s sales and use tax from 6.625 percent to 6 percent, arguing that the move would pressure Democrats to fulfill campaign promises to make New Jersey more affordable.
“If this incoming administration is serious about affordability, Sherrill will endorse my tax cut proposal when she responds to reporters,” he said. “The state sales tax has been feeding bloated budgets and is a regressive tax that disproportionately hurts residents with less income.”
Sales tax revenue, which generates more than $14 billion annually, flows into the state’s general fund rather than property tax relief programs tied to income tax collections.
Fiscal pressures heighten concern over lame-duck budget moves
DePhillips pointed to the record $60 billion budget passed by Governor Phil Murphy and Democratic lawmakers in June—spending that exceeded revenue by roughly $1.5 billion—as a warning sign. To close the gap, the administration drew from the state’s surplus, leaving what DePhillips described as “a massive hole” heading into the next fiscal year.
“The proposal to increase the sales tax to 7% during lame duck is very concerning,” DePhillips said. “Trenton Democrats have tried it before, and the majority party has an insatiable appetite for spending other people’s money. Sherrill has not done anything to quell those justified fears.”
Sherrill’s campaign comments resurface amid speculation
During the gubernatorial debates, Sherrill declined to rule out raising the sales tax when pressed, saying, “I’m not going to commit to anything right now.” DePhillips cited that response as a warning sign for voters, arguing her continued silence reinforces doubts about her commitment to affordability.
“Her response then was a red flag, and her silence now is a red flag,” DePhillips said. “She must clearly state she does not want a sales tax increase, she does not want the Legislature to pass one in lame duck, and she does not want Murphy to sign one. Supporting my bill to lower the sales tax would show she actually intends to make New Jersey more affordable.”