NJ budget deal reached, here is what it will cost you

💲 Deadline for new state budget is one week from today
💲 Gov. Murphy and Democratic leaders reach deal on tax hikes
💲 Property tax relief is included in deal

There was no doubt you were going to pay more under Gov. Phil Murphy's final budget before he leaves office. The only real question was how much more and for what.

It is being reported that Murphy and Democratic legislative leaders have reached an agreement on tax hikes.

Murphy's proposed budget set a new record and continued his trend of spending more money than the state already collects in taxes. To pay for this latest round of excess spending, Murphy proposed $1.2 billion in new taxes and fees.

The tentative agreement being reported on NJ.com includes tax hikes on cigarettes, luxury homes, and online gaming. However, Murphy's fellow Democrats rejected so-called "fun taxes" on things like bowling, batting cages, and laser tag.

Under the deal, New Jersey will tax cigarettes at $3 per pack. Murphy had wanted a 25% tax hike on sports betting and online gaming. Lawmakers agreed to 20%.

These are the tax hikes

According to NJ.com, the tax increases agreed to include:

💲 A tax hike on luxury homes and other property worth between $1 million and $2 million
💲 A 30-cent hike on cigarettes
💲 A 20% tax hike on money casinos pay on revenue from sports betting and online gaming

'Fun taxes' rejected

Murphy included tax hikes on several recreational activities from bowling, to batting cages, pool halls, health clubs and mini golf.

Both Democrats and Republicans were critical of the idea, especially since this is an election year for both governor and assembly members.

New Jersey recently announced an additional $785 million in tax revenue, and democrats grabbed that money to offset some of the governor's proposed tax hikes.

Tax Relief

Democratic lawmakers will also fully fund New Jersey's main source of property tax relief: the ANCHOR property tax relief program.

ANCHOR payments are made directly to property taxpayers in New Jersey and are designed to offset the highest property taxes in the nation.

The budget will also reportedly still include the Stay NJ program, but payments are not expected to begin until 2026. The program is designed to cut property taxes by 50% for homeowners age 65 and older.

However, the program comes with a $1 billion dollar price tag, and whoever is elected governor in November will have to decide if New Jersey can afford it.

A budget deal must be signed into law one week from today.

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