This will be the second year in a row the gas tax has decreased, after last year's 8.3-cent dip. (Photo by New Jersey Monitor)
New Jersey’s gas tax will decrease by one penny per gallon starting October 1, with state officials crediting a rise in gas consumption over the last 12 months even as the average cost of gas has spiked.
New Jersey must examine its gas tax rate annually to determine if there is enough revenue to support the fund that pays for state transportation projects. This year’s review will bring the state gas tax to 41.4 cents for gasoline and 48.4 cents for diesel fuel.
The Garden State has some of the highest gas taxes in the nation, according to Forbes, behind only Pennsylvania (57.6 cents), California (53.9 cents), and Washington (49.4 cents). The tax was 14.5 cents per gallon in 2016 before a deal between then-Gov. Chris Christie and Democratic lawmakers raised it 22.6 cents overnight and allowed for annual increases.
New Jersey’s gas tax is a mixture of a fluctuating petroleum products gross receipts tax and a static motor fuels tax. The latter is set at 10.5 cents for gasoline and 13.5 cents for diesel fuel.
The gas tax last year fell by 8.3 cents after rising 9.3 cents the year before.
Under the law signed by Christie, state officials must determine every August whether the revenue generated by the gas tax is enough to keep the state’s transportation fund from running at a deficit. That target hovers around $2 billion.
“We are pleased that this dedicated funding stream continues to provide billions of dollars across the state to support our critical transportation infrastructure needs,” state Treasurer Elizabeth Maher Muoio said in a statement.
The average price of regular gas in New Jersey is $4.95 per gallon, up from $3.19 one year ago, according to AAA.
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