Toll refunds in NJ: What you need to know

The New Jersey State Legislature remains on summer break, but some legislators are hoping they can bring relief to commuters when they return in the fall.

After being hit with multiple toll hikes in recent years and the prospect of a revived congestion tolling plan to enter Manhattan, bi-partisan efforts are underway to give back the tolls drivers pay, as first reported by NJ.com.

Various pieces of legislation remain stalled, and they range from a one-time refund to ongoing tax breaks.

The proposal that would give drivers the biggest savings is a bill that would grant a full tax deduction (up to $1,000) for tolls paid by E-ZPass.

That legislation is sponsored by state Sen. Patrick Deignan, a Democrat, and state Sen. James Holzapfel, a Republican.

Deignan told NJ.com, “It’s basically to give tax relief to folks who have to commute to live their lives."

In addition to tolls paid on the Turnpike, Parkway and Atlantic City Expressway, the bill would include the crossings into New York and Pennsylvania.

The bill language states the refunds are for "any in-state toll road or bi-state bridge and tunnel authority that connects to New Jersey."

Other similar bills would cap how much of a deduction an individual could take and/or set thresholds for when the deduction could be claimed.

A one-time refund

Assemblymen Paul Kanitra, R-Ocean, offered an alternative to the tax deduction.

His legislation would give commuters a one time refund directly to their E-ZPass accounts.

Under the bill, New Jersey would create a $250 million toll relief fund. Out of that fund, 50% of the tolls paid in a single year to the Turnpike, Parkway and Atlantic City Expressway would be refunded directly to the E-ZPass account.

Kanitra's plan does not offer reimbursement for tolls paid crossing the Hudson or Delaware Rivers.

Passage is uncertain

None of the nearly dozen bills that have been introduced have advanced.

Deignan, however, believes his bill does have a chance to move forward when the legislature returns to business in a few weeks.

Even if any of the proposals gains approval by lawmakers and is signed into law by Gov. Phil Murphy, commuting tolls will still not be deductible on your Federal Income Tax Return.

The IRS only allows deductions for driving costs directly related to business and not general commuting.