TRENTON, NJ -- On Tuesday, Gov. Jon Corzine (D) unveiled his fiscal year 2007 budget plan to increase the state’s sales tax and cigarette excise tax, reports Reuters.

Corzine's budget plan relies on a series of tax increases to boost state revenues, with the largest increase coming from a 1 percent increase in the sales tax from 6 percent to 7 percent.

The governor’s plan also relies on a cigarette excise tax increase to raise $80 million in state revenue by tacking on an additional 35 cents to the current $2.40 per-pack cigarette excise tax. Should the increase become law, New Jersey’s cigarette excise tax would be the highest in the nation at $2.75 per pack. Currently, Rhode Island has the highest state excise tax on cigarettes at $2.46 per pack.

According to The New York Times, other tax increases include wholesale taxes on licensed beverages. The wholesale excise tax on beer would increase 5 cents to 17 cents a gallon; wine would increase 10 cents to 80 cents a gallon; and liquor would increase 10 cents to $4.50 a gallon. The governor is also calling for a new tax on water of 4 cents per 1,000 gallons.