The New Jersey State Government is set to collect an additional $85 million in sales tax revenue due to a significant increase in electricity rates, as revealed in a recent budget hearing for fiscal year 2026. Senator Carmen Amato Jr., representing the 9th District, has urged that this windfall should be returned to ratepayers.
The New Jersey Board of Public Utilities announced that from June 2025, residential customers would face electricity rate hikes ranging from 17.2% to 20.2%. The Office of Legislative Services (OLS) anticipates that this rise in electricity costs will lead to higher sales tax collections, predicting total energy-related sales tax collections will reach $259.5 million. This figure is markedly higher than the $174.4 million projection initially made by Governor Murphy’s office.
Senator Amato attributed the increased energy costs to “Democrat energy policies.” He suggested that since the state is benefiting from the unexpected additional sales tax revenue, it would be fair to return the extra funds to the utility customers who are burdened by the higher costs. “Now more than ever, my constituents deserve a break and I will continue to fight for policies that reduce energy costs and protect taxpayers,” Amato declared.
Governor Murphy’s office has not commented on the proposed return of the windfall to utility customers.
