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Unhappy
with the Assembly’s latest Transportation Trust Fund package, the
Senate decided to forgo voting on the bill and instead will continue to
negotiate with the Assembly to try to hatch a plan to fund the TTF. In
response Governor Christie declared a state of emergency
and
ordered state officials to plan a shutdown of all ongoing work paid for
by the nearly broke Transportation Trust Fund. Many Senators indicated
they were unhappy with the Assembly’s last-minute proposal that was
passed early Tuesday morning, just before 1:00AM
The Assembly
version would raise the gas tax 23 cents. The package also includes: 1.)
A one percent sales tax deduction phased in over the next 18 months,
which would reduce the sales tax from 7 to 6 percent 2.) An exemption
from income taxes for more retiree income. 92 percent of NFIB members oppose this proposal. Senate leadership support a plan that will raise the gas tax by 23
cents and will include a variety of tax cuts, including the elimination
of the estate tax.
Both pieces of legislation would increase New
Jersey’s gas tax from 14.5-cents
per-gallon to 37.5 cents and would significantly increase costs for
small businesses and could lead to less traffic on the roads, resulting
in lost business. Small businesses do not support this tax increase.
Now,
it’s up to the Assembly and Senate to come up with a plan that will
satisfy both chambers and Governor Christie. It’s expected that
negotiations will begin again in min-July. We’ll keep you informed of
new developments.
