Good news for New Jersey drivers and business owners: There will not be a gasoline tax increase this month.
According to the law that hiked the state’s gas tax by 23 cents in November last year, state officials must revisit the tax rate each year on Oct. 1 to make sure that it’s generating enough money for the transportation fund. The tax increase was projected to generate roughly $1.23 billion annually to fund a $16 billion transportation program. If revenue comes in below this amount, the treasurer can raise the rate again the next year. If revenue exceeds the projected amount, the treasurer lowers the rate the following year.
Evidently, since the petroleum products gross receipts tax rate schedule shows no increase for this year, the gas tax is serving its intended purpose and meeting its revenue targets. Sal Risalvato, the executive director of the New Jersey Gasoline-Convenience-Automotive Association, told NJ.com that was expected since gasoline and diesel consumption has stayed fairly consistent.