TRENTON– The state Legislature on Thursday will begin to think about payments that may raise taxes on gasoline by 23 cents a gallon whereas lowering or eliminating taxes on estates and a few income, a deal that has assist and opposition cross occasion strains.
Lawmakers in each the Senate and Meeting introduced the legislation Monday, searching for to tack a 12.5 p.c tax onto the state’s 14.5 cent motor fuels and petroleum tax to be able to spend $20 billion over the following 10 years on infrastructure improvements.
The Transportation Trust Fund expires at the top of the month and as working out of cash for brand new projects.
Lawmakers introduce 23-cent hike in gasoline tax
Listed below are 9 things you need to know about New Jersey’s traditionally low gas tax:
1. The first New Jersey gas tax was 2 cents a gallon, and took impact in 1927.
2. The final time the gasoline tax was elevated was 1988. The 28-year gap since that final increase is the longest in state historical past.
3. The 14.5 cent gasoline tax is now 49th in the U.S., with only Alaska being decrease. If the 12.5 % increase is enacted, New Jersey would have the seventh-highestgas tax. But as a result of the tax relies on the value of gasoline, the Backyard State could move up or down on that record.
Four. The 14.5 cent fuel tax is made up of a 10.5-cent per gallon tax on motor fuels and a four cent Petroleum Merchandise Gross Receipts Tax. A lot of the revenue from those taxes is already devoted to the belief fund, however voters can be asked this fallto constitutionally dedicate all existing and future gas tax income.
5. Gov. Tom Kean set up the Transportation Trust Fund as self-sustaining by limiting how much governors might borrow to allow debt to be paid off so it may very well be perpetually replenished. Governor after governor sabotaged that by growing the borrowing and never increasing the supply of cash going into the fund. Proper now, all that is left is debt.
6. Gov. Christie Whitman as soon as proposed elevating the gas tax — with a number of the proceeds to pay for open area preservation.
7. In accordance with a state senator, New Jersey has practically 7 million licensed drivers who would get hit with a rise. Officials have said anyplace from 20 to forty % of the fuel tax is paid by out-of-state motorists.
8. Gov. Chris Christie’s opponents charge that his controversial decision to cancel a rail tunnelunder the Hudson River to New York early in his term was motivated by a need to grab funds to pay for brand new Jersey highway tasks and avoid raising the gas tax.
9. The gas tax is projected to generate about $750 million this yr, and a 23-cent enhance would add one other $1.Four billion a 12 months. Jersey motorists dwelling close to state borders would have just a little relief. Gasoline would still cost extra in New York and Pennsylvania, but can be cheaper in Delaware.
Samantha Marcus may be reached atsmarcus@njadvancemedia.com. Follow her on Twitter@samanthamarcus. FindNJ.com Politics on Fb.
