Murphy calls for $125 tax credit in return for tax on rich

New Jersey Gov. Phil Murphy ((Photo by Edwin J. Torres/Office of Gov. Phil Murphy))

New Jersey Gov. Phil Murphy says property taxpayers would get a $125 refundable credit on their income taxes under a plan he's proposing that includes imposing higher tax rates on millionaires.

Murphy in May first proposed using better-than-expected revenue proceeds this fiscal year to fund $250 million in property tax relief. The proposal hinges on lawmakers also increasing income tax rates on those making more than $1 million.

Murphy, a Democrat, offered details of his plan for the first time Monday in Hackensack.

The relief Murphy proposes is just a fraction of the state's $8,767 average annual property tax bill.

It's not clear the proposal will go anywhere in the Democrat-led Legislature. Senate President Steve Sweeney has already said he's opposed to raising taxes.