No New Gas Tax: NJ Says No to Another Hike This Year
There’s some good news for Jersey drivers.
State Treasurer Liz Muoio announced via an email release Wednesday morning that New Jersey’s current tax rate on gas and diesel fuel will remain the same for the coming year.
The tax will stay at 41.4 cents per gallon for gas and 48.4 cents per gallon for diesel fuel.
"We’re pleased that fuel consumption levels, coupled with our realistic projections last year, have allowed us to avoid an increase in the gas tax rate for this year," Muoio said "This dedicated revenue stream has enabled us to disburse billions in funding across the state to bolster our transportation infrastructure and keep New Jersey moving forward.”
New Jersey law requires the Department of the Treasury to conduct a detailed review of fuel consumption data annually, in order to figure out if a gas tax increase is necessary.
A law passed in 2016 requires a steady stream of revenue to support the state’s Transportation Trust Fund program — initially hiking the gas tax by 23 cents that year, but then allowing for further increases as needed to feed the fund.
The TTF program must provide $16 billion over eight years to support infrastructure maintenance and improvements to New Jersey’s roads and bridges.
Under the law, New Jersey’s Petroleum Products Gross Receipt tax rate must be adjusted accordingly in order to guarantee the TTF will get about $2 billion per year.
In 2018 there was a 4.3 cent rate increase in the gas tax because of this requirement, since the state had to make up for a combined revenue shortfall of $125.2 million over both fiscal years 2017 and 2018.
According to the Treasury Department, the state has disbursed a total of $4.34 billion for local, county, and state projects, including NJ Transit since the law was enacted in 2016.