A-12 (Prieto, McKeon, Schaer, Sumter, Caputo, Vainieri Huttle, Giblin, Rible, Sarlo, Oroho)
Increases the state gas tax by 23.5 cents to 37 cents per gallon to raise $2 billion a year, which when combined with federal matching funds enables the state to make a $29 billion investment in transportation infrastructure over the next eight years. The law also offsets the state gas tax increase with tax relief in other areas by: cutting the state sales tax from 7 percent to 6.875 percent on Jan. 1, 2017, and to 6.625 percent on Jan. 1, 2018; increasing the $675,000 estate tax exclusion threshold to $2 million on Jan. 1, 2017 and completely repealing the estate tax on Jan. 1, 2018; phasing in an expansion of the retirement income exclusion for senior citizens to a maximum $100,000 by the 2020 tax year; expanding the Earned Income Tax credit from 30 percent to 35 percent beginning in the 2016 tax year; and providing a $3,000 state income tax deduction beginning in the 2017 tax year for residents honorably discharged from active duty in the U.S. Armed Forces or National Guard.
Signed by the Governor October 14, 2016 (P.L. 2016, c.57)
Effective Date: October 14, 2016
Leave a Reply
This site uses Akismet to reduce spam. Learn how your comment data is processed.
