9.6% World Cup Sales Tax Hike Proposed For NJ, GOP Pushes Back

A New Jersey Senate bill introduced in March would impose temporary surcharges on hotels, transportation, sales transactions and sports betting near the Meadowlands during the 2026 FIFA World Cup — and Republican lawmakers are already calling it a tax grab.

S4111, introduced by Sen. Paul Sarlo, would temporarily raise the state sales tax by 3 percent on taxable goods, food and amusement in the Hackensack Meadowlands District — bringing the combined rate to 9.625 percent.

It would also increase the hotel surcharge by 2.5 percent on occupancy in most New Jersey counties except those along the Jersey Shore, add a 50-cent fee on prearranged rides, including Uber and Lyft to and from the Meadowlands, and impose a 10 percent surcharge on corporate gambling revenue from World Cup matches.

The Hackensack Meadowlands District is a narrowly defined geographic area under state law that encompasses the stadium and surrounding wetlands — not the broader towns in the region.

Chris Eilert, Sarlo's chief of staff, framed the bill as a matter of fairness to New Jersey taxpayers.

"The State of New Jersey is incurring significant costs for public safety and security for hosting the World Cup games in the Meadowlands," Eilert told Patch. "If the state can recoup those costs by assessing fees on the entities sponsoring and producing the games, and on the people attending the games, then that should be something the administration pursues. Reducing costs to state taxpayers by implementing targeted user fees should be something we all agree on because it makes sense and it's fair."

Assembly Republicans pushed back sharply, calling on Gov. Mikie Sherrill to reject the legislation outright.

"In October, the governor said she would not raise the sales tax. That's exactly what this does," said Assemblyman Christopher DePhillips (R-Bergen), Assembly Republican Conference Leader. "If we truly want to make New Jersey a destination, we should be lowering taxes, not raising them during one of the biggest international events we've ever hosted."

Assemblyman Al Barlas (R-Essex), a member of the Assembly Budget Committee, said the bill punishes businesses that planned around existing tax rules.

"Changing the rules of the game after the fact is wrong," Barlas said. "Businesses made investments and commitments based on one set of expectations. Now Trenton wants to move the goalposts to cover its own spending."

DePhillips said New Jersey taxpayers have already spent more than $300 million to prepare for the tournament and argued the better path to recouping that investment is through economic activity, not new fees. Barlas warned the proposal could have longer-term consequences for the state's business climate.

The New Jersey Libertarian Party also issued a statement opposing the bill, calling for what it described as a "complete separation of sports and state."

The party noted that in addition to the $307 million in taxpayer funds already allocated to secure the event and upgrade MetLife Stadium, an additional $20 to $26 million in taxpayer funds was given to the Board of Directors of the New York-New Jersey Host Committee.

"We of the New Jersey Libertarian Party reject this proposal and any others that aim to further tax the people of NJ in any way. We believe that the State has no place in sports, competitive or otherwise. Taxpayers should not be bled to fund any sporting events, stadiums, etc," the party said in a statement.

"FIFA is a global organization with billions in available capital. If they want to hold an event, let them pay for it themselves and recoup the costs the way all businesses do, by enticing consumers to pay for their goods and services."

The party called on both Sherrill to veto the legislation and Sarlo to withdraw it.

Sherrill spokesperson Sean Higgins told Patch the governor is focused on the tournament's broader impact on the state.

"This is a once-in-a-generation event, and Governor Sherrill is committed to ensuring that the FIFA World Cup is safe, successful and showcases the best of New Jersey," Higgins said. "Gov. Sherrill will also work with the legislature to ensure the FIFA World Cup brings real economic benefits for the State of New Jersey, our businesses, and most importantly keeps costs down for residents."

S4111 has not yet been scheduled for a hearing.

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