Proposed N.J. Gas Tax Could Cost Consumers $300 More Per Year

Gas tax would go to replenish state’s roadwork fund for roads, bridges and mass transit.

November 11, 2014

TRENTON, N.J. – New Jersey motorists would pay about $300 more per year for gasoline under proposed legislation that seeks to raise $1.25 billion annually for highways, says Bloomberg News. The bill is the first introduced since a state transportation panel began holding hearings on how to replenish the state’s roadwork fund, which will exhaust its cash and bonding authority next fiscal year.

In September, Governor Chris Christie opened the possibility of increasing the gas tax in order to raise funds, after previously saying he wouldn’t agree to higher gasoline costs for New Jerseyans, who pay the most property taxes among all U.S. states.

The measure applies to the 4 cents-per-gallon petroleum products gross-receipts tax, which is collected from refiners and distributors and built into prices at the pump. The new figure would be 9% of the average retail price per gallon of unleaded regular, and the state would update that average price every other year.

Based on August 2014 prices, it’s estimated that motorists would pay about 80 cents more per day if the tax passes, providing funding for roads, bridges and mass transit. Currently, New Jersey drivers pay an average of $2.78 per gallon of regular, compared with $2.96 nationwide, according to AAA figures.
Another proposal, raising the gasoline portion of the levy 15 cents per gallon over three years and costing the average motorist $100 more a year at maximum, hasn’t moved beyond committee.

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