TRENTON, N.J. — Senate Republican Budget Officer Declan O’Scanlon on Thursday demanded answers from Gov. Phil Murphy regarding a proposed new tax on digital services that could raise costs for millions of New Jersey residents and businesses.
In a statement issued by O’Scanlon’s office, the senator pointed to a memo from the nonpartisan Office of Legislative Services (OLS) that outlines the potential scope of the tax. According to OLS, the proposal could impact cloud software, artificial intelligence tools, and a broad range of commonly used digital services.
Key Points
- Sen. Declan O’Scanlon called on Gov. Murphy to explain a proposed tax on digital services.
- A nonpartisan memo warns the tax could affect cloud software, AI, and common tech tools.
- The Murphy administration has not yet released details on the proposal.
“Non-partisan experts are raising red flags that this new tax could impact everyone with a phone or a computer and impact our businesses community—Governor, it’s time you explain this tax,” O’Scanlon said.
While the Murphy administration has not released detailed information on the plan, the OLS memo suggests that the tax would apply broadly to various digital platforms and services, which may include streaming, cloud computing, and potentially online productivity tools.
O’Scanlon criticized the tax as a threat to affordability in the state, warning it could further strain residents and companies already contending with high costs. “The fact remains that he continues to find ways to exacerbate our already terrible affordability crisis with these regressive taxes,” he added.
As of Thursday, the Governor’s Office had not responded publicly to the memo or O’Scanlon’s remarks.
The digital services tax remains under legislative review as budget negotiations continue in Trenton.
