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New Jersey Senate Budget Committee Chairman Paul Sarlo has initiated discussions about potentially raising the state's sales tax from 6.625% to 7%. The proposal was made during a hearing on Tuesday, where Sarlo questioned the Office of Legislative Services about the impact of such an increase.
Sarlo suggested that the sales tax increase could replace the corporation tax on higher earning companies, which fluctuates annually. He clarified that he is not advocating for the sales tax increase but considers it a more stable revenue source and an option worth exploring.
"If the Legislature, getting ready for a new administration down the road in two years, were looking for a stable revenue funding source for property tax relief, for education, going from 6.75 back up to 7% would be more stable than a corporate income tax on the highest companies, which could vary from year to year," Sarlo said during the hearing, as reported by northjersey.com.
However, Sarlo emphasized to reporters that he is not supporting the sales tax increase but that "everything is on the table."
The discussion comes as New Jersey's state treasurer and the nonpartisan Office of Legislative Services testified before the state’s Senate budget committee, indicating that the state can expect more of the same in terms of revenue moving forward.