TRENTON, NJ – If taxes are your main concern, Governor Phil Murphy has made it clear, New Jersey is not the state for you. During his seven years in office, Phil Murphy has never met a tax he didn’t like and now is setting his sights on taxing fun.
If living in the state that already taxes you to death isn’t bad enough, now you will be taxed for having a good time in the Garden State.
Imagine planning a family outing to the local bowling alley or a thrilling afternoon of laser tag with friends, only to find out that New Jersey’s government wants to slap a tax on your fun.
That’s exactly what Governor Phil Murphy has proposed in his latest budget plan, unveiled on March 2nd, sparking a wave of disbelief, criticism, and debate across the state.
In his fiscal year 2026 budget address, delivered at the Statehouse in Trenton, Murphy outlined a $58.1 billion spending plan that aims to generate an additional $1.2 billion in revenue.
Never mind taxing the rich, big corporations, and billionaires, Murphy wants to tax your free time.
From bowling and go-cart racing to bungee jumping and batting cages, the proposal reads like a hit list of weekend pastimes—and it’s raising eyebrows even among Murphy’s allies.
Taxing the Joy Out of Life?
The budget documents reveal a dizzying array of newly taxable activities. Want to hit the driving range or take the kids to a water slide? That’ll cost you extra. Fancy a round of miniature golf or a spin at the skating rink? Get ready to pay the state a little more. The list goes on: paintball, skeet shooting, skiing lift tickets, and even parachute jumping are all in the crosshairs. Murphy’s administration estimates these new taxes could bring in $277 million, part of a broader strategy to shore up state finances without touching the third rail of widespread tax increases.
Beyond Fun: A Smorgasbord of New Taxes
The fun tax isn’t the only eye-catcher in Murphy’s plan. The governor is also targeting luxury homes with higher rates—2% on properties sold between $1 million and $2 million, and 3% above that—projected to yield $317 million. Internet gaming and sports betting taxes would jump from 13-15% to a flat 25%, netting $402.4 million, though casino leaders warn it could kneecap Atlantic City’s recovery. Vaping liquid taxes would rise from 10 cents to 30 cents per unit ($10 million), cigarettes would climb 30 cents a pack to $3.00 ($41 million), and alcohol would face a 10% tax hike ($18.5 million).
More niche proposals include taxing drones ($5 million), guns and ammunition ($8 million), and “intoxicating” hemp products ($30 per ounce, alongside a cannabis fee hike from $2.50 to $15 per ounce, totaling $70 million). Even truck traffic at warehouses and second-hand airplane sales aren’t spared. On the flip side,
The proposal comes at a precarious moment. New Jersey faces a $1.2 billion structural deficit, and looming federal Medicaid cuts could erase the budget’s $6.3 billion surplus. This comes after Murphy went on a four-year COVID spending spree. Now that the federal COVID funds are gone, instead of cutting the excess, he’s passing the bill on to middle class families across the state.
Murphy’s budget is just the opening salvo. Lawmakers have until June 30 to negotiate a final plan, with public hearings set to begin soon.
While the governor touts a record surplus and property-tax relief, the “fun tax” has stolen the spotlight—and not in a good way. Will New Jerseyans stomach paying more for their leisure, or will the Legislature roll back the most contentious parts of this plan? One thing’s clear: the fight over taxing fun is just heating up.
