On March 26th, Gov. Phil Murphy signed a bill that raises New Jersey’s gas tax 10 cents beginning this July, continuing annually in increments for the next five years. The legislative majorities and the governor claimed the gas tax hikes are needed to replenish the state’s Transportation Trust Fund, covering maintenance and repairs for roads, highways, bridges, tunnels, railroads, and potholes.
- The new gas hike will increase approximately two cents every year for the next five years.
- Additionally, an annual registration fee for electric vehicles starts at $250, also beginning in July, and rising $10 annually through July 2028.
NFIB strongly opposed the tax increases, noting that the last time New Jersey changed the gas tax, we went from the second-lowest tax in the nation to one of the country’s highest rates. And yet, lawmakers were still asking for more. Unfortunately, the legislation was fast-tracked by the leadership in the Senate and Assembly.
State Director Eileen Kean argued that New Jersey motorists already pay the seventh highest gas tax in the nation at 42.3 cents per gallon of gasoline, and a hike of 10 cents is another fee on our already overtaxed small businesses. Post pandemic, Main Street businesses continue to struggle to keep their doors open with already the most expensive business climate in the country.
NFIB supports our current transportation funding system because keeping motorists safe and maintaining the roadway structure is vital to our economy. New Jersey, however, already had a very adequate funding mechanism for the Transportation Trust Fund (TTF) to safely maintain our highways and bridges. Before increasing the gas tax, NJ transit should have been independently assessed. Small businesses and motorists should not be taxed because NJ Transit needed a financial rescue.
