TRENTON, N.J. (CBSNewYork) -- Millions of New Jersey drivers will be hit in their wallets after Gov. Chris Christie and state lawmakers have come up with a plan to increase the state's gas tax.
CBS2's Dick Brennan reports Christie and Democratic leaders have cut a deal to raise the state gas tax by 23 cents.
Christie said the deal would also eliminate the estate tax and cut the sales tax.
The estate tax would be phased out over the next year-and-a-half. The sales tax would be cut by three-eighths of a percentage point. There will also be tax credits for veterans and the working poor.
This represents a compromise after a long political battle, but agreement on both sides that the state's infrastructure needs rebuilding.
"Over $32 billion will be invested in infrastructure, improvements and modernizations in the state of New Jersey over the next eight years. That will be good for the state's economy, that will be good for the citizens of our state, and it's something that all three of us are very, very proud of," Christie said.
It would be the first gas tax hike since 1988 as the deal will be good for eight years.
Christie had ordered a shutdown of most transit projects earlier this summer.
The deal to raise $2 billion a year still needs approval in both house of the legislature, but that seems assured.
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