Sales Tax May Increase To 9.6 Percent For Towns Near The World Cup This Summer

SECAUCUS, NJ — Life in the Meadowlands is about to get even more expensive, if a proposed sales tax increase tied to the World Cup goes through.

State Sen. Paul Sarlo (D-Wood Ridge) introduced Bill S4111, which seeks to increase the sales tax in the Meadowlands district to 9.625 percent.

If this goes through, the tax on any taxable purchase made in the Meadowlands from June 12 - July 21 will rise to 9.625 percent. Those are the five weeks when the FIFA World Cup games are going to be played at MetLife stadium.

The bill also adds surcharges to Uber and Lyft rides, sports betting and hotel/motel stays.

"It's an audacious money grab, that's what it is," said Assemblyman Chris DePhillips (R-Bergen), one of the most outspoken Republican lawmakers fighting this proposed tax increase. "And this would affect all towns in the 30-square-mile Meadowlands District."

Towns in the Meadowlands district are: Carlstadt, East Rutherford, Little Ferry, Lyndhurst, Moonachie, North Arlington, Ridgefield, Rutherford, South Hackensack, Teterboro, Secaucus, Jersey City, Kearny and North Bergen.

"This defeats the purpose of having the World Cup come to New Jersey," he said. "New Jersey fought hard to get the World Cup here and now, at the eleventh hour, right before the World Cup is upon us, this tax increase is coming down the track. I think it's reprehensible. If anything we should be lowering the sales tax in this state."

Mayor Mike Gonnelli stressed Thursday that the town of Secaucus has nothing to do with this proposed tax increase, and he said the town is powerless to stop this if it gets passed.

"FIFA should be paying us to host the World Cup, not the other way around," said Gonnelli Thursday. He used a curse word to describe how bad traffic on Meadowlands Parkway may be, as Meadowlands Parkway will be used as a main route to take people from the Secaucus Junction train station to the stadium. Also, hotel prices in the area are expected to skyrocket, with some luxury hotel rooms going for more than $8,000 per night.

Here is what Sarlo's bill proposes:

• Increase the sales tax on all purchases in the Meadowlands to 9.625 percent. (It's not just food and alcoholic drinks. The sales tax will rise on all taxable items. So even if you simply buy groceries, clothes or go out to eat in the Meadowlands during the World Cup this summer, you could be paying a 9.625 sales tax, if this bill becomes law.)
• Add 2.5 percent to the existing hotel/motel tax in the Meadowlands.
• Add a 10-percent surcharge on corporate gambling revenue for World Cup games.
• Add a 50-cent fee to all taxi, Uber and Lyft rides in the Meadowlands. Note: This is not just an Uber ride to the stadium and back. This is any Uber/Lyft ride taken in the Meadowlands, even if you're not going to see a soccer game. The bills states: "A 50-cent surcharge upon every prearranged ride that originates within the state and terminates in the Meadowlands district, or that originates in the Meadowlands district."

"Our intel is that the Sherrill administration requested that this tax be introduced, but her office won't confirm it," said DePhillips.

A spokesman for Sarlo, who introduced the bill, told NJ.com the tax increase is meant to help "recoup the costs" of hosting the World Cup. A spokesman for Gov. Mikie Sherrill told Patch in this article that New Jersey hosting the World Cup is "a once-in-a-generation event" and New Jersey should see "real economic benefits."

If S4111 becomes law, residents can apply for a tax credit next year when they file their taxes.

"So that's really fun, right? You have to save all your restaurant receipts for one year," said DePhillips. "In the fall, Sherrill pledged over and over again not to raise the sales tax. This violates her campaign promise. This is a money grab for the state." (Sherrill said last October she won't raise New Jersey's sales tax.)

The proposed 9.625 percent sales tax increase is part of budget negotiations going on currently in Trenton, so it remains to be seen if the tax will actually happen. June 30 is the deadline for when the state has to come up with a budget.