Tiver, Pennacchio bill seeks to eliminate sales tax, fees on energy bills this summer
NEW JERSEY – Senator Latham Tiver (R-8) and Senator Joe Pennacchio (R-26) announced Wednesday that they will be introducing legislation to alleviate the burden of rising energy costs. The proposed bill would temporarily suspend 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,” said Tiver. “The SBC has been used as a slush fund for the state and it’s time for that to end. This bill would provide some meaningful reprieve to ratepayers who’ve been unfairly taxed for programs that do not directly benefit them.”
Under the proposed bill, the temporary suspension would span from June 1, 2025, through September 30, 2025. Earlier this year, it was announced that electric rates were going to increase up to 20% for New Jersey consumers.
Senator Tiver additionally proposed the “Energy Security and Affordability Act,” which would help address rising energy costs by ensuring energy infrastructure is powered by reliable, diverse, 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 Pennacchio. “Families and small businesses are already stretched thin with high taxes and inflation, and these extra costs are pushing them to the breaking point. We need to act now to lower energy bills before the health and livelihoods of our families and businesses are put at risk. This legislation is a step in the right direction for ratepayers who’ve seen their electric bills spiral out of control under the Murphy administration.”
From 2021 to 2024, more than $704 million of revenues collected by the SBC were transferred to other funds for purposes outside the SBC’s intent. Additionally, New Jersey is projected to collect $259.5 million through Sales Tax, Energy revenues in FY26—an increase of $85.2 million (nearly 50%) over initial estimates made prior to the electricity rate hikes announced for June, said Tiver and Pennacchio.
