On August 24th, the New Jersey Department of the Treasury announced that the state’s gas tax rate will decrease by 8.3 cents per gallon beginning October 1st.
Under a law passed in 2016 during the Christie Administration, New Jersey’s Transportation Trust Fund (TTF) program is required to provide $16 billion over eight years to support critical infrastructure improvements to the state’s roadways and bridges. In order to ensure the state has the funds necessary to support these projects, the law dictates that the Petroleum Products Gross Receipt (PPGR) tax rate must be adjusted accordingly to generate roughly $2 billion per year.
The formula, explicitly outlined in the law, states the Motor Fuels tax and the Petroleum Products Gross Receipt tax rate will decrease on October 1, 2021 from 40.2 cents to 31.9 cents for gasoline and from 44.2 cents to 35.9 cents for diesel fuel. When combined with the Motor Fuels Tax, which is fixed at 10.5 cents for gasoline and 13.5 cents for diesel fuel, the total tax rates that motorists will pay for gasoline and diesel fuel will be 42.4 cents and 49.4 cents, respectively.
To read the announcement, click here.