TRENTON, N.J. – Senator Carmen Amato Jr. (R-9) is throwing his support behind a Republican proposal to suspend key state energy taxes in an effort to reduce household utility bills, calling on the Murphy administration to return millions in excess tax revenue collected from recent rate hikes.
The plan, introduced this week by Senators Latham Tiver (R-8) and Joe Pennacchio (R-26), would temporarily eliminate the sales and use tax and the Societal Benefits Charge (SBC) from consumer energy bills. GOP lawmakers estimate the measure could save the average New Jersey household hundreds of dollars on annual electric and gas costs.
Key Points
- Sen. Amato supports suspending the sales tax and Societal Benefits Charge on energy bills.
- Republicans say the plan would save families hundreds amid a 20% rate hike.
- Amato calls for the state to return excess tax revenue to ratepayers.
Lawmakers push back against rising energy costs
“Rising energy costs have hit families hard this year, and it is clear that Democrat energy policies are largely responsible for the increases,” Amato said. “My constituents deserve a break and need real relief. That’s why I support Senators Tiver and Pennacchio in suspending unnecessary taxes on energy bills to put money directly back in the pockets of ratepayers—where it belongs.”
GOP demands refund of overcollected taxes
Amato, who sits on the Senate Budget and Appropriations Committee, cited new figures from the Office of Legislative Services showing that utility customers will pay an additional $156 million in state taxes due to the 20% electricity rate hike. He said those funds should be refunded directly to consumers.
“If the Democrat-controlled government is collecting more than expected from energy sales taxes, it only makes sense that they return the money to utility customers,” he said.
Governor defends energy taxes amid criticism
During a recent News12 “Ask Governor Murphy” broadcast, Governor Phil Murphy defended maintaining the current taxes, saying the revenue supports state energy programs overseen by the Board of Public Utilities.
Amato sharply criticized that stance, calling it “absurd” to prioritize tax collection over affordability. “It’s time that we put families first,” he said. “That’s exactly what this Republican-led plan will do.”