Gov. Phil Murphy’s record-high budget plan includes $1.2 billion in new sales taxes and fees, and even with some tax cuts thrown in, the proposal has drawn the ire of Republicans, business lobbying groups and even fellow Democrats in the Legislature.

The Democratic governor outlined a $58.1 billion budget on Tuesday that tries to pull off a tough balancing act: It includes money for the popular ANCHOR property tax relief program, full funding for school districts and additional aid for the struggling New Jersey Transit system. His proposal also foresees a $1.2 billion deficit.

New fees on the most expensive home sales, online gambling and other activities seek to bridge the gap, but they're already running into opposition. In a statement Tuesday, state Senate Budget Chair Paul Sarlo, D-Bergen, said “revenue raisers” should only be used “as a last resort.”

Proposed hike in budget

• Warehouse truck traffic: Murphy proposed a $2 “truck traffic excise fee” on warehouses throughout the state, based on the number of truck trips, which would bring in $20 million. According to budget documents, this fee is meant to “mitigate the impact of new warehouse development on traffic and road quality.” Murphy proposed a $1 fee in 2024, but it was never approved. 

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