NJ May Just Pass A Millionaire's Tax After All: Here's The Latest

NEW JERSEY – Gov. Phil Murphy may finally get the one thing he's pitched – and strongly fought for – more than anything in his two years as governor: a millionaire's tax.

The one person who has done more to prevent it from happening, Senate President Steve Sweeney, has now opened the door to passing one, Patch has learned. But it would come with conditions.

Sweeney will consider – and even help pass – a tax hike on those making $1 million or more a year if Murphy agrees to cough up another $1 billion for the state’s pension fund, sources told Patch.

Sweeney also confirmed his new stance in an interview with NJ Advance Media.

“I’ve absolutely said ‘no’ for the last two years,” Sweeney told NJ Advance Media. “And now, I’m like, look: If you really want a millionaire's tax, then let’s pay the pension up, and then we can move forward as a state and make the right kind of investments that we need to make.”

Dan Bryan, a spokesman for Murphy, issued a statement in response:

“The governor thanks the senate president for his willingness to work together on reinstating the millionaire's tax in the upcoming state budget and looks forward to partnering to continue our efforts to make historic payments into our pension system, keep promises to our public sector workers, and make greater investments in the middle class.”

Murphy will likely address the tax during his third annual budget address on Tuesday.

The potential deal also comes days after Murphy said he likely has cancer, disclosing that a tumor was discovered on his kidney. He'll undergo surgery in March. Read more: NJ Gov. Phil Murphy Says Tumor Found, Likely Has Cancer (UPDATE)

Last year, Murphy signed the 2020 budget in June after a protracted, acrimonious battle between himself and Sweeney, largely because the senate president vehemently opposed the millionaire's tax.

Sweeney has sought other methods — such as raising property taxes and consolidating school districts — to bring in more revenue to New Jersey and help fund school districts that experienced sharp cuts in state funding. Read more: NJ Gov. Murphy Vetoes Raising Property Taxes To Fix School Aid

Murphy gave up the battle on the tax last year but continued the war with Sweeney by promising to take actions of "fiscal responsibility that were lacking in the Legislature's spending plan and set up New Jersey to better weather a possible future economic downturn."

In June, Murphy froze tens of millions of dollars in spending that had big impact on a number of towns, colleges and roads. The administration, citing better-than-expected revenues, then released the remaining funds last month. Read more: NJ Gov. Phil Murphy Releases $121M For 48 Things You May Need

"We must be honest about its shortfalls: This is a budget that does not include tax fairness, does not ask opioid manufacturers to help fund addiction services, and does not raise gun fees that have been untouched since 1966," Murphy said last year. "These common-sense revenues would have allowed us to save for a rainy day and sustainably fund necessary investments for New Jersey's 9 million residents. Make no mistake, I will continue fighting for tax fairness and fiscal responsibility well beyond (the) budget actions."

Last year, Sweeney said the governor's freeze on items in the budget was "a shameless act of political retribution that is both petty and vindictive — it's Bridgegate on steroids that punishes those who disagree."

"This is an abuse of gubernatorial power that victimizes some of the neediest and most vulnerable people in New Jersey, including cancer patients, the hungry, senior citizens, college students and those struggling to overcome substance abuse problems," he said.