N.J.’s gas tax will go down on October 1st.
Here’s how we’ll rank compared to other states.
New Jersey’s gasoline tax will drop by one penny a gallon next weekend making it the 11th highest rate in the nation.
Beginning October 1, the Garden State will collect 41.4 cents for each gallon of gasoline sold in the state and 48.4 cents on every gallon of diesel, Gov. Phil Murphy’s administration announced last month.
A state law enacted in 2016 requires the tax rate be adjusted each October to ensure it generates roughly $2 billion per year in revenue to support the Transportation Trust Fund, a program to pay for critical infrastructure improvements to New Jersey’s roads and bridges.
The rate rises or falls each year based on a formula outlined in the law.
Gasoline tax collections in the fiscal year that ended June 30 were “moderately” higher than officials estimated, and drivers in the Garden State are expected to consume slightly more this year, New Jersey Treasurer Elizabeth Muoio said in a statement.
This marks the second consecutive year the tax is being reduced after falling by 8.3 cents last year as demand for motor fuels rebounded from a pandemic slump.
At 41.4 cents a gallon, New Jersey’s gas tax is about three cents higher than the national average and will be 11th highest among U.S. states, according to the American Petroleum Institute.
The new rate is nearly 7 cents lower than New York’s but more than 18 cents higher than in Delaware. Pennsylvania’s rate of 58.7 cents on every gallon ranks third highest in the nation.
New Jersey’s gas tax has increased about 30 cents since 2016 when then-Gov. Chris Christie, a Republican, and the Democratic-controlled state Legislature agreed to raise the motor fuels tax by 23 cents a gallon, the state’s first gas tax hike since 1988.
At the time, lawmakers said a big hike was needed to fund an eight-year, $16 billion transportation program that could turn around New Jersey’s aging and neglected infrastructure.
That deal also laid the groundwork for future changes in the tax rate. Because gas tax revenue is dependent on how much gas people buy, they wanted assurances that they would have enough money to pay for those projects.
“We are pleased that this dedicated funding stream continues to provide billions of dollars across the state to support our critical transportation infrastructure needs,” Muoio said.
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