Murphy's opposition is the latest sign the impasse between the governor and the Legislature will drag on
A core piece of a legislative counterproposal to Gov. Phil Murphy‘s budget that would tax short-term rentals is a no-go with the governor.
The new tax, which would affect shore rentals, was part of a proposal Senate President Stephen Sweeney unveiled Wednesday as an attempt to put an end to the four-month-long disagreement between the governor and top lawmakers over which taxes to raise to buttress Murphy’s $ 37.4 billion spending plan.
Sweeney said it would pull in $ 250 million for the state.
But only hours after Sweeney released the proposal, Murphy signaled he won’t support it.
“I don’t get it, frankly,” Murphy said during a telephone town hall Wednesday night.
N.J. Dems offer Murphy a compromise
Instead, the governor reaffirmed his commitment to a millionaires tax — which lawmakers have so far refused to support.
“When you can easily tax millionaires and instead someone wants to tax the Jersey Shore, I don’t get it,” Murphy said. “That, to me, is a no-brainer.”
Both sides are fighting a Saturday budget deadline. If no deal is reached, Murphy could order a state government shutdown.
Murphy’s opposition to part of the latest counterproposal is the latest sign the impasse between the governor and the Democratic-controlled Legislature will drag on as the clock to a shutdown counts down.
The Senate’s latest new offer also proposed:
- A four-year surtax on corporations. Those with net income between $ 1 million and $ 25 million would pay 11.5 percent, and those with net income over $ 25 million would pay 13 percent.
- Expanding the sales tax to include short-term property rentals. Rentals of fewer than 90 days would be taxed at 6.625 percent.
- A doubling of the Realty Transfer Fee. Homeowners selling properties at $ 1 million or more would pay 2 percent rather than 1 percent on the sale.
“This is my very best offer,” Sweeney, D-Gloucester, said. “We’re not excited by any of (the ideas). But in good faith, we’re offering alternatives.”
Leaders from the state Assembly — the other house of the Legislature — were not at Sweeney’s news conference.
But Sweeney said the lower chamber is on board with this new proposal.
NJ Advance Media staff writers Brent Johnson and Samantha Marcus contributed to this report.
Matt Arco may be reached at marco@njadvancemedia.com. Follow him on Twitter @MatthewArco or Facebook.