Murphy’s rejection came as a stunning surprise to some members of the Legislature, who said the Democratic governor has privately said he would not target the deal, even though ending it would likely net New Jersey additional tax revenues, largely from Pennsylvanians who earn high salaries here.
TRENTON — South Jersey lawmakers expressed both surprise and disappointment Monday after Gov. Phil Murphy vetoed legislation that aimed to make it more difficult to pull the plug on New Jersey’s four-decades-old tax agreement with neighboring Pennsylvania.
The two-state accord has been in place since 1977 and spares Pennsylvania residents who work in New Jersey from paying income tax to the Garden State, and vice versa.
Prompted by Republican Gov. Chris Christie’s threat to end the agreement in 2016, New Jersey lawmakers overwhelmingly passed legislation this year to require majorities in both the Assembly and Senate to approve ending the pact rather than allow the state’s governor to unilaterally withdraw.
The state Senate approved the measure by a 39-0 vote in February and the Assembly followed with a 76-0 vote in June.