TRENTON, N.J. (Reuters) - New Jersey Governor Phil Murphy presented his first budget on Tuesday since taking office in January. The broad tax and spending proposals in the $37.4 billion budget turn sharply from eight contentious years under previous Republican Governor Chris Christie.
Here are details of some of Murphy’s policy proposals for the fiscal 2019 budget:
*A 10.75 percent tax on annual incomes over $1 million would generate $765 million of revenue, affecting about 20,000 residents and 19,000 non-residents.
*Legalizing and taxing recreational marijuana sales beginning in January 2019 would reap $60 million but could grow over ensuing years, and expanding the existing medical marijuana program would bring in $20 million. Marijuana would see a 25 percent excise tax and sales tax.
*Restoring a 7 percent sales tax rate would generate $546 million.
*Taxes on ridesharing services like Uber, “transient accommodations” like Airbnb and internet sales by companies located outside New Jersey would raise $67 million.
*Closing a carried interest loophole on hedge fund income would create $100 million.
*One-shot, non-recurring revenues comprise $273 million, or 0.9 percent of the budget, compared to this year’s 2.8 percent.
*Put $3.2 billion into public pensions. That amount, which includes money from the state lottery, would be the highest in state history but still only 60 percent of what actuaries recommend.
*Begin phasing in free community college by 2021, with $50 million in fiscal 2019 allowing nearly 15,000 more students from families with incomes below $45,000 to attend tuition-free.
*Increasing the earned income tax credit to 40 percent of the federal credit, benefiting more than 510,000 low-income working families and costing the state $27 million.
*To offset federal tax changes that penalize high-cost, high-tax states including New Jersey, raise the state property tax deduction cap to $15,000 from $10,000, which would benefit a third of New Jersey homeowners.
*Murphy also said he would sign legislation allowing homeowners to make their property tax payments as “charitable contributions” to local governments for tax deduction purposes. That legislation passed the Senate and moved to the full Assembly on Monday for a future vote.
Reporting by Hilary Russ, Editing by Rosalba O'Brien