New Jersey Gas Tax Going Up More Than 9 Cents Starting In October
TRENTON, N.J. (CBS/AP) -- New Jersey's gas tax is going up 9.3 cents a gallon, a roughly 22% increase, Democratic Gov. Phil Murphy's administration said Friday. The increase to 50.7 cents a gallon from 41.4 cents goes into effect on Oct. 1.
It stems from a 2016 law that requires the state fund supporting bridge and road infrastructure maintain a $2 billion program annually. It also requires an annual adjustment to the fuel tax if receipts don't meet that level.
Treasurer Elizabeth Muoio said gasoline consumption dropped about 39% from March to May — coinciding with the COVID-19 outbreak — and leading to a drop in receipts for the fuel tax.
"As we've noted before, any changes in the gas tax rate are dictated by several factors that are beyond the control of the administration," Muoio said. "The law enacted in 2016 contains a specific formula to ensure that revenue is meeting a certain target. When it does not, the gas tax rate has to be adjusted accordingly in order for us to meet our obligation under the law and fully fund the state's many pressing transportation infrastructure needs. Highway fuels consumption took a significant hit in FY 2020 because of the economic downturn caused by the COVID-19 pandemic."
It's the third year Murphy, a Democrat elected in 2017, has had to review the gas tax. In 2018, the tax increased about 10%. Last year the rate stayed flat.
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