There’s good news and bad news when it comes to how much you’ll pay in sales tax.
Murphy had wanted to reverse a sales tax cut New Jersey got as part of the deal to raise the gas tax a few years ago. But Democratic leaders said no way, and won. There will be no increase in the sales tax.
Murphy’s plan to restore the 6.625 percent sales tax to 7 percent would have cost you anywhere from $32 a year (four households with income less than $25,000) to $152 a year (if you make between $132,000 and $286,000). The richer who buy more stuff would have paid more.
All told, it would have cost people who shop in Jersey $765 million.
But there’s a catch.
In the midst of the bitter budget talks, the U.S. Supreme Court jumped into the fray and in essence gave New Jersey $188 million more in new sales tax revenue with a ruling that says states can tax purchases we make online.
State Assembly Speaker Craig Coughlin said the ruling came just at the right time, joking that it was “the luck of the Irish.” But that $188 million will come out of our pockets of those who shop in New Jersey.
How much you pay depends on how much you use online retailers that will now have to collect the Jersey sales tax.
If you spend $1,000 shopping online in a year, that’s an extra $66.25.