Another top Democrat in the state Legislature shot down Gov. Phil Murphy’s proposal to pump $250 million into property tax relief if lawmakers approve his millionaire’s tax.
From right, Assembly Speaker Craig Coughlin, Senate President Stephen Sweeney and other Democratic leaders discuss the Fiscal Year 2020 budget. – DANIEL J. MUNOZ
Assembly Speaker Craig Coughlin, D-19th District, shot down the deal, days after the rejection from Senate President Stephen Sweeney, D-3rd District.
“I do not share the governor’s view that middle-class property tax relief must be tied to another income tax hike,” Coughlin said in a statement Wednesday night. “We should return that money to middle-class property taxpayers with no strings attached.”
Murphy unveiled the proposed deal at a town-hall style meeting Monday night in Ewing.
His spending plan for the 2020 fiscal year, which starts July 1, calls for $283 million for the Homestead property tax credit program and $202 million for the Senior Freeze property tax relief program; the additional $250 million from the millionaire’s tax would be added into that pot. The state’s average property tax bill hit $8,676 last year.
“For this governor, a millionaire’s tax is just a talking point,” Sweeney said Tuesday in a statement. “We need a real budget with long-term, sustainable property tax savings, not gimmicks.”
The governor’s millionaire’s tax calls for increasing the income rate from 8.97 percent to 10.75 percent for every dollar earned above $1 million, which is projected to earn the state roughly $448 million annually.
It marks one of the biggest roadblocks to a budget deal, which has to be reached by July 1 otherwise Murphy would have to shut down parts of the state government. Lawmakers and the administration narrowly avoided a shutdown last year when they reached a deal late on June 30.
Murphy tried unsuccessfully to push for the increased tax rate last year but met strong resistance from Democratic lawmakers, including Sweeney. Instead, both sides agreed to a mega-millionaire’s tax rate of 10.75 percent on those earning more than $5 million a year.
“Gov. Murphy has long been committed to ensuring tax fairness for New Jersey residents and enacting policies that help more than just a privileged few. And by having our state’s millionaires pay their fair share, Gov. Murphy is now ready to invest an additional $250 million in property tax relief for the middle class, one of the most pressing issues in our state. The Governor’s plan presents a sound fiscal policy that will help millions of middle-class New Jerseyans,” Alyana Alfaro of the governor’s office said in a statement.
