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.
It has been announced that New York will be eliminating their gas tax until at least the end of 2022 to offset the record-setting gas prices. Will NJ follow?
New Jersey reportedly has the fourth highest gas tax in the nation. While the Garden State continues to pay over $4 a gallon at the pump, lawmakers are turning their attention towards temporarily lowering that tax.
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.
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.
At Assembly budget committee hearing, the state transportation commissioner warns the budget adopted next summer will be quite challenging for NJ Transit.