New jersey's new 'fun tax' pushed by governor phil murphy is anything but fun

TRENTON, N.J. — A new tax proposal from Gov. Phil Murphy’s administration is drawing backlash across New Jersey, targeting recreational activities such as bowling, laser tag, and miniature golf as part of a broader effort to close a $1.2 billion budget gap.

If taxes are your number one concern, buckle up because a wild ride is coming down the Parkway.

Unveiled in Murphy’s $58.1 billion budget plan on March 2, the proposed taxes would apply to a wide range of leisure activities, including go-kart racing, batting cages, paintball, and even parachute jumping. The administration projects these new taxes could generate $277 million in revenue.

Beyond entertainment, Murphy’s proposal also seeks to raise taxes on luxury home sales, vaping products, alcohol, and online gambling. The plan would increase the tax on internet gaming and sports betting to 25%, potentially bringing in over $400 million, while cigarette taxes would rise by 30 cents per pack.

New Jersey’s budget surplus stands at $6.3 billion, but federal Medicaid cuts and the expiration of COVID-era federal aid have left the state facing a significant financial shortfall. Murphy’s plan aims to bridge that gap without broad-based tax hikes, but critics argue it places the burden on middle-class families.

Lawmakers have until June 30 to finalize the budget, with public hearings set to begin soon. The debate over taxing leisure activities is expected to be one of the most contentious battles in the upcoming negotiations.

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