Airlines at Newark Liberty International Airport will see an increase to their fuel taxes thanks to a change approved by the Legislature Thursday.
The bill, S-2892, would expand the state’s taxes on aviation fuel requiring all commercial airline carriers to pay 4 cents per gallon on all fuel purchased in New Jersey. Federal rules allow the state to collect taxes on fuel used during taxiing and takeoff, but not during flight. The tax revenue must be used for airport-related improvements.
NJBIA Vice President Andrew Musick opposed the bill because if its impact on the cost of doing business.
“Changing the fuel tax formula will result in increased costs, specifically at Newark Liberty International Airport, which is already the highest cost airport in the country.”
Such a move would likely spur companies like United Airlines to focus on other areas of the country for any expansion plans or even consider shifting some operations out of New Jersey, Musick said.
Such a move would have a big impact on New Jersey’s economy. United Airlines and its regional partner carriers operate more than 400 daily flights out of its Newark hub and serve 14.6 million passengers a year.
“When you look at all that United contributes to the state, it’s clear that we want them to continue to grow here,” Musick said. “When any company with significant infrastructure in the state also has a presence in other states, it’s not a discussion about them leaving but rather about them not growing.