Murphy opposes Jersey Shore rental tax

Gov. Phil Murphy indicated Thursday morning that he wasn’t keen to sign off on the short-term rental tax proposed by legislators on Wednesday.

“Let’s lay off the middle class. Let’s invest in the middle class,” Murphy said. “I saw what was discussed yesterday, and I had never thought of it before, of the shore rentals. That’s taking it out of the middle class. That’s opposite of why we were brought here.”

The tax on short-term rentals proposed by legislators is coupled with a handful of other tax increases, including a surcharge on property sales exceeding $1 million, designed to limit direct impact on New Jersey residents.

But while Senate President Steve Sweeney said yesterday that the shore rental tax would largely hit out-of-state renters, the tax would impact some New Jersey residents as well.

Some Democratic legislators, including State Sens. Jeff Van Drew and Vin Gopal, who represent shore districts, have come out against the measure, which would disproportionately impact their districts.

The offer is the latest in a series of negotiations that have accelerated as the Saturday budget deadline approaches.

With roughly two days remaining, Murphy, who did not take questions at this morning’s event, said he was preparing for all possibilities – including a shutdown.

“I would be abrogating my responsibilities if we did not plan for the whole range of possible outcomes if logic doesn’t prevail, including the shutdown of the state,” Murphy said.