Republican Lawmakers In Essex County Bash NJ Budget, ‘Mansion Tax’

ESSEX COUNTY, NJ — The latest state budget and a newly revised “mansion tax” are getting bad reviews from two Republican lawmakers who represent several towns in Essex County.

Sen. Kristin Corrado and Assemblyman Al Barlas – each of the 40th legislative district – recently released statements about their stances on two important financial developments in New Jersey.

The 40th District includes the Essex County towns of Caldwell, Essex Fells, Fairfield, North Caldwell, Verona and West Caldwell. It also includes several towns in Bergen and Passaic counties.

STATE BUDGET

Gov. Phil Murphy gave a green light to the fiscal year 2026 state budget earlier this month. The $58.78 billion spending plan cleared the Senate 26-13, with one senator not voting. The budget made it through the Assembly by a vote of 52-27, with one abstention. Read More: Murphy Signs Record-Busting Budget With New Taxes – And Tax Relief

Reactions were split among lawmakers who represent towns and cities in Essex County.

Several Democratic legislators said the latest budget “meets financial obligations” while making critical investments in education, public health and property tax relief. Read More: Essex County Lawmakers React To NJ Budget With Praise, Criticism

On the other side of the aisle, Barlas panned the budget after a preliminary vote.

One of the assemblyman’s main complaints? A lack of time to inspect last-minute changes, he reported.

“We had 20 minutes to read over hundreds of line item spending increases and language changes to the budget,” said Barlas, who also voted against the final version of the budget.

“Let’s be clear,” Barlas charged. “This isn’t fiscal responsibility – it’s fiscal malpractice. New Jersey families deserve transparency, accountability, and real tax relief. Instead, they got another backroom deal made at the last possible minute.”

Last week, Barlas pointed to another financial speed bump that local governments may soon face (article continues below):

“The Murphy administration just announced that the State Health Benefits Plan - Local Government (municipal employees) is going to see a 36.5% increase in rates. This means municipal budgets will have to increase (tax hike) or services will have to be cut thanks to Governor Murphy. The Democrats in Trenton passed and Governor Murphy signed a $58.8 billion budget that included over $700 million in one-shot legislative add-ons. They increased spending/raised taxes (robbed Peter) to dole out earmarks to a chosen few (paid Paul). We are sent to Trenton to come up with solutions to problems. At some point, Trenton Democrats have to realize that burying their heads in the sand, hoping taxpayers won’t notice isn’t going to work. I called out this very missed opportunity to address a real problem that will impact taxpayers before I voted no on the budget.”

MANSION TAX

Corrado also panned the state budget, writing that it was “easy” for her to vote against it.

“This $58 billion budget lacked transparency, public input and increases taxes on New Jersey residents,” she said. “Additionally, this bloated budget contains a $4 billion structural deficit, eats away at the state's surplus and adds another billion dollars in spending in comparison to last year's budget.”

The senator also had harsh words for the state’s new “mansion tax,” which was introduced in the Legislature on June 23 and signed by the governor on June 30. It went into effect on July 10.

The New Jersey Realtors website offers a breakdown of the new tax structure, which will now be entirely paid by the seller:

• $1 million+: The existing 1% “mansion tax” remains, but the responsibility shifts from the buyer to the seller, amending the 2004 law.
• $2 million+: 2% tax on the seller.
• $2.5 million+: 2.5% tax on the seller.
• $3 million+: 3% tax on the seller.
• $3.5 million and above+: 3.5% tax on the seller.

“Trenton Democrats abruptly changed the Mansion Tax to shift the tax burden to home sellers – a blatant bait-and-switch that made New Jersey’s Mansion Tax an ‘exit tax,’” the senator charged.

“This hurried process – passed strictly along party lines – lacked adequate notice for the public and the real estate industry, limiting their ability to offer comments and perspectives on the major policy change,” Corrado said.

• See Related: Hiking Tax For NJ ‘Mega-Mansion’ Sales Could Raise Serious Cash, Study Says

Send local news tips and correction requests to eric.kiefer@patch.com. Learn more about advertising on Patch here. Find out how to post announcements or events to your local Patch site.