According to the 2009 State Business Tax Climate Index from the Tax Foundation New Jersey has the worst tax climate of all 50 states.  The report says:

New Jersey scores at the bottom by having the third worst individual income tax, tenth worst sales tax, and worst property tax.

In 1966 New Jersey has one of the best tax climates in the nation with no sales tax or income tax.  At that time a “tempoary” 3% sales tax was implemented to fix the “property tax crisis.”  The sales tax was hiked to 5% in 1970, 6% in 1982, and 7% in 2006.