gas tax

New Jersey lawmakers and Governor Phil Murphy strike deal to raise gas tax for infrastructure funding. Electric vehicle owners will also pay.

The state Treasury Department reviews the gas tax based upon consumption and revenue generated in order to fund $16 billion worth of infrastructure projects paid for by the Transportation Trust Fund.

A pilot program is seeking 400 or more New Jersey drivers to test the theory out.

The eight-year Transportation Trust Fund financing plan was approved in 2016 so is already almost three-fourths completed.

Considering the record revenues and surplus, there was quite a bit of angst as the Assembly Budget Committee met with Gov. Phil Murphy's treasurer.

Gov. Phil Murphy supports a federal gas tax holiday. The state's tax of 42.4 cents a gallon is set by a statutory formula and would need a law to change it.

Gas prices are spiking, and the increase in New Jersey this month has been 1.7 cents more than nationally, despite an 8.3 cent cut in the state gas tax.

Gas stations had to clear out inventory bought at the old tax rate and don't get refunds on it. Now higher crude oil and wholesale prices will negate any drop.

On Friday New Jersey’s gasoline tax dropped by 8.3 cents per gallon. But keep in mind last October it had gone up by 9.3 cents.

Under a state law that requires annual adjustments to meet a revenue target, the gas tax in New Jersey goes down 8.3 cents to 42.4 cents a gallon on Oct. 1.