Garden State Times

Senator Latham Tiver and Senator Joe Pennacchio have proposed legislation to mitigate increasing energy costs for New Jersey residents. Their bill suggests a temporary suspension of both the sales and use tax, as well as the Societal Benefits Charge (SBC) on electric bills.

"For too long, New Jersey residents have paid inflated energy bills while the Societal Benefits Charge has been quietly siphoned off to fund unrelated projects and plug holes in the state budget," stated Senator Tiver. He expressed the urgency to end the SBC's use as a "slush fund for the state," stating that the bill aims to provide "some meaningful reprieve to ratepayers" unfairly taxed for unrelated programs.

The temporary suspension is proposed to commence on June 1, 2025, and last until September 30, 2025. Earlier announcements indicated that electric rates may increase by up to 20% for New Jersey citizens.

Senator Tiver has also introduced the "Energy Security and Affordability Act." This act aims to control rising energy costs by ensuring that energy infrastructure is supported by reliable and affordable energy sources.

"We are staring down a potential energy crisis this summer, with prices expected to spike up to 20% for New Jersey families," said Senator Pennacchio. He emphasized the considerable strain on families and small businesses due to high taxes and inflation, stating, "We need to act now to lower energy bills before the health and livelihoods of our families and businesses are put at risk."

Between 2021 and 2024, over $704 million from the SBC revenues were redirected for uses outside its intended purpose. Furthermore, New Jersey expects to collect $259.5 million through Sales Tax and Energy revenues for fiscal year 2026, marking an almost 50% increase over prior estimates following the proposed electricity rate hikes starting in June.