TRENTON, NJ – According to New Jersey Governor Phil Murphy, it’s his money and he’s going to tell you how it’s going to spent. Unfortunately, overspending by the governor has led to a wave of new taxes being proposed by Murphy that target all things fun in New Jersey.
As he also said, if taxes are your main concern, maybe New Jersey isn’t the state for you. Let’s reminisce.
A growing wave of opposition is sweeping across New Jersey as residents, lawmakers, and business owners rally against Governor Phil Murphy’s latest budget proposal, which includes a controversial plan to impose a sales tax on recreational activities such as bowling, mini golf, laser tag, and more. Dubbed the “fun tax” by critics, the measure is part of Murphy’s $58.1 billion Fiscal Year 2026 budget, unveiled on February 25, aimed at addressing a $1.2 billion structural deficit amid looming federal funding uncertainties.
The proposal would apply New Jersey’s 6.625% sales tax to a wide range of previously exempt participatory sports and leisure activities, including go-kart racing, batting cages, paintball, and even bungee jumping. The state estimates this expansion could generate $277 million in new revenue.
However, the plan has sparked outrage among those who see it as an unfair burden on working families and small businesses still recovering from economic challenges.
A Tax on Family Fun?
“Imagine taking your kids to a bowling alley or a mini golf course for a weekend outing, only to find out you’re now paying more because the state wants to tax your fun,” said Assemblywoman Dawn Fantasia (R-Sussex), who has been vocal in her opposition. “This isn’t just about revenue—it’s about punishing families for trying to enjoy what little downtime they have.”
State Assembly Majority Leader Lou Greenwald (D-Camden) echoed similar sentiments, despite his party affiliation with Murphy. “Everyone who is a parent has hosted birthday parties at these places, and working families don’t deserve that,” Greenwald said. “Given what we’ve done to reduce property taxes, I don’t want to distort that message by taxing laser tag and bowling.”
Local business owners are equally alarmed. Tom Rossi, who operates a bowling alley in Cherry Hill, told reporters, “We’re still clawing our way back from the pandemic. Adding a tax like this could drive customers away when we’re already operating on thin margins.” Similar concerns have been raised by operators of go-kart tracks and mini golf courses, who fear the added cost will deter patrons in an already competitive market.
Legislative Pushback
The proposal has drawn bipartisan criticism as lawmakers gear up for a contentious budget negotiation season, with a deadline of June 30. State Senator Declan O’Scanlon (R-Monmouth) called the tax expansions a symptom of the administration’s “spending addiction,” accusing Democrats of targeting “what little enjoyment people have left.” Meanwhile, Senate Budget Chair Paul Sarlo (D-Bergen) has signaled reluctance to support many of Murphy’s revenue-raising ideas, particularly those on recreational activities. “There’s not a lot of revenue generated out of these, and most if not all of them will be eliminated,” Sarlo said during a recent hearing.
Public hearings on the budget are set to begin soon, and the “fun tax” is expected to be a flashpoint. With all 80 Assembly seats and the governorship up for election this fall, some legislative sources suggest that taxing “someone going bowling while having a beer” could be a tough sell in a politically charged year.
Budget Context and Murphy’s Defense
Murphy’s budget, his final one before leaving office in January 2026, comes at a time of fiscal uncertainty. Despite a $6.3 billion surplus, the state faces potential federal Medicaid cuts under the Trump administration, which could wipe out that cushion.
The governor has framed his plan as a responsible approach to avoid broad-based tax hikes, such as increases to the income or general sales tax, while preserving property tax relief programs like ANCHOR and Stay NJ, which total $4.3 billion in the proposal.
In his budget address, Murphy emphasized the need to adapt to a “new reality” of federal funding volatility. “We must acknowledge—and adapt to—this uncertainty,” he said, defending the targeted taxes as necessary to maintain critical services. The administration projects that, alongside the recreational taxes, increases in online gambling rates (from 15% to 25%), luxury home sales fees, and other levies will collectively raise over $1 billion.
On social media platforms like X, New Jerseyans have expressed frustration, with posts labeling the plan a “tax on fun” and questioning the governor’s priorities. “Phil Murphy wants to tax your free time,” one user wrote, while another quipped, “Hope you’re sitting down when you see this list: bowling, laser tag, mini golf—taxed!”
As opposition mounts, the fate of the “fun tax” remains uncertain. Lawmakers will face pressure from constituents and industry groups in the coming months, with analysts predicting significant revisions to Murphy’s initial proposal. For now, the debate over taxing leisure activities is heating up, threatening to overshadow other elements of the governor’s legacy as he approaches the end of his tenure.
“This is our budget now,” Greenwald said, signaling the Legislature’s intent to reshape the plan. “We have never taken a budget and approved it in its exact form.” Whether the “fun tax” survives the negotiation process—or becomes a casualty of public and political backlash—will be a key storyline in New Jersey’s budget battle this spring.
