The other leader of the state Legislature has now rejected Gov. Phil Murphy’s proposal to pour another $250 million into property tax relief for New Jersey residents next year if lawmakers agree to his plan to raise taxes on millionaires.

That means Murphy and his fellow Democrats who lead the Legislature could be headed for another tense state budget battle in the coming weeks — and raises the possibility once again of a state government shutdown.

State Assembly Speaker Craig Coughlin, D-Middlesex, said in a statement obtained by NJ Advance Media on Wednesday night that “I do not share the governor’s view that middle-class property tax relief must be tied to another income tax hike, especially if there is, indeed, unanticipated revenue due to higher than expected tax receipts."

“We should return that money to middle-class property taxpayers with no strings attached,” said Coughlin, the second-highest-ranking state lawmaker in New Jersey.

"I am hopeful that the governor will agree to this course of action and that we can work together on behalf of New Jersey’s working middle-class families,” the speaker added.

Coughlin’s comments come a few days after the highest-ranking state lawmaker, state Senate President Stephen Sweeney, D-Gloucester, dismissed Murphy’s proposal as a “gimmick" and said he remained against a millionaires tax.

Murphy is seeking to raise the gross tax rate to 10.75 percent on income of $1 million and above, which he expects to generate $447 million for the taxpayer-funded state budget set to begin July 1. He says he needs the money to provide more funding for education, transit, and public-worker pensions.

On Monday, the governor announced that an unexpected surge in tax collections will give him an extra $250 million to work with. He said he’d put that money into a pair of property tax relief programs to help the middle class if lawmakers approve the millionaires tax.

Murphy says he can make that move only if the millionaires tax — and its $447 million in revenue — is in place. Otherwise, he’d have to put the extra $250 million in tax collections elsewhere to balance the budget.

Thus, Coughlin’s request to give that money automatically back to taxpayers with “no strings attached” wouldn’t work under Murphy’s plan. Or, without the millionaires tax, leaders would have make cuts or find other revenue.

Sweeney and other Democratic lawmakers supported a millionaires tax five times under Murphy’s Republican predecessor, Chris Christie, who killed it each time.

Sweeney said his opinion changed on the hike after the Republican federal tax overhaul took away a key property tax deduction that was popular in high-tax New Jersey.

Now, he and Coughlin oppose the millionaires tax, saying New Jerseyans are already overtaxed.

But Murphy had been hoping the property tax proposal would force lawmakers’ hands — especially with all 80 seats in the Assembly are up for grabs in November’s elections.

"I don‘t think it’s a gimmick to ask 19,000 people who can afford to pay it to fund property tax relief for millions in the middle class,” Murphy said Wednesday. “That’s good policy.”

The Democratic-controlled Legislature has to pass a budget and Murphy has to sign it by July 1, according to the state Constitution. If not, Murphy could shut down the state government until they cut a deal.

A similar fight unfolded last year, when Murphy sought a millionaires tax against the wishes of Sweeney and Coughlin. That pushed the state to the brink of a shutdown.

But they reached an agreement at the last minute, raising income taxes on those who make $5 million or more, as well increasing the state’s corporate business tax.

NJ Advance Media staff writers Matt Arco and Samantha Marcus contributed to this report.

Brent Johnson may be reached at bjohnson@njadvancemedia.com. Follow him on Twitter @johnsb01.

Have a tip? Tell us. nj.com/tips

Get the latest updates right in your inbox. Subscribe to NJ.com’s newsletters.