NJ Could Soon Slap These 3 New Taxes, Fees On You

Get ready for more pocket-digging, New Jersey. Gov. Phil Murphy will likley have at least three more bills on his desk soon that could raise taxes and fees – one of which is being called a "rain tax."

Lawmakers approved the three measures – as well as other bills that could make New Jerseyans pay more to live here – on Thursday, and they'll need Murphy's signature in order to become law.

Democrats are saying the measures are important for raising revenues, building necessary projects that would boost the state's economy and protecting the environment.

For example, the so-called "rain tax," as Republicans dubbed it, permits counties, municipalities and certain authorities to establish stormwater utilities and related fees and other charges.

An advocacy group called New Jersey Future said the bill, which was approved by both houses of the Legislature, "provides municipalities, counties, utilities and authorities with a long-needed tool to manage flooding and dirty runoff from rainwater."

“Most importantly, it gives communities a way to access new resources in a fair and equitable manner, and invest in related benefits such as additional green space. We urge the governor to sign it," said Chris Sturm, New Jersey Future’s managing director for policy and water.

Republicans, however, are complaining that the new legislation will allow lawmakers to expand what's already an unfair burden on New Jersey residents who were saddled with several new taxes in 2019. Read more: 5 New Tax Hikes, Fees In NJ Start Now

The legislation also comes as lawmakers approved hiking the minimum wage to $15-an-hour, a bill which Murphy plans to sign on Monday. Republicans believe it will harm businesses and lead to a rise in payroll taxes. Read more: Gov. Murphy Signs 31 Bills Into Law As $15 Minimum Wage Passes

Assemblyman Christopher DePhillips said the "rain-tax" bill permits local communities to tax "based on the weather," and allows unlimited bonding and debt to be placed on the backs of property taxpayers.

“The last thing this state needs is more debt and another runaway tax. Especially one that taxes the weather,” said DePhillips, R-Bergen. “I implore my colleagues on the other side of the aisle: Let’s not do this, let’s vote down this bill together, let’s vote no and consider financially responsible alternatives to this legislation.”

Lawmakers also passed these two bills that Republicans believe are essentially disguised taxes:

Tax levy dedicated to arts and culture through a public question.

The bill, which was approved by the Assembly in a 45-30 vote, would permit a municipality to adopt an ordinance allowing an annual "tax levy" dedicated to arts and culture funding.

The levy would have to be approved by a majority of voters in the municipality through a public question in a general or special election.

“The arts and our creative economy are vital to our urban communities, to the state’s cultural identity, and to the overall economy, contributing nearly $520 million annually,” said Assemblyman Raj Mukherji, D-Hudson. “This legislation will allow voters to decide if their municipalities should create a dedicated source of funding for the arts and provide much needed stability for additional programming and local venues.”

So-called expansion of jet-fuel taxes

The legislation, which was passed by both houses, eliminates certain aviation fuel tax exemptions and provides funding for aviation capital projects, according to InsiderNJ.

Jeff Tittel, director of the New Jersey Sierra Club, told the publication that the measure could be utilized for "a proper mass transport system that brings travelers and workers to (Newark) airport."

"For example, the Port Authority could extend the Newark Light Rail to Penn Station. We should be promoting public transportation to benefit our citizens and reduce our impact on climate change," he said. "This should include a variety of transit projects that help a variety of different communities."

The New Jersey Business & Industry Association said the legislation would "expand jet fuel taxes" imposed on commercial airlines in New Jersey that will lead to higher airfare costs for consumers and businesses.

The bill, S-2892/A-4392, would subject all aviation fuel purchased in New Jersey to a 4-cent tax, the group says.

"This change to the aviation fuel tax formula would make New Jersey less competitive and hurt efforts to encourage economic growth," said NJBIA Vice President of Government Affairs Andrew Musick. "The expanded tax will cost commercial airlines millions of dollars, and that will drive up the cost of doing businesses in New Jersey, as well as the cost of airfare."

Governor Murphy photo