New Jersey’s gas tax will stay at 41.4 cents per gallon (48.4 cents for diesel) for the coming year thanks to a steady stream of revenue coming into the state’s Transportation Trust Fund (TTF).
State Treasurer Elizabeth Maher Muoio made the announcement Wednesday morning after consulting with the legislative budget officer. The 2016 law establishing the current gas tax also requires it to go up if revenues for road repair and construction are not sufficient for the coming year. The tax was raised by 4.3 cents last October to boost revenues.
“We’re pleased that fuel consumption levels, coupled with our realistic projections last year, have allowed us to avoid an increase in the gas tax rate for this year,” Muoio said. “This dedicated revenue stream has enabled us to disburse billions in funding across the state to bolster our transportation infrastructure and keep New Jersey moving forward.”
New Jersey’s 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.
Treasury estimates that the new FY 2020 Highway Fuels Revenue Target of $1.981 billion can be achieved with the current PPGR tax rate. Maintaining the 4.3 cent rate increase that went into effect last year is necessary to cover the continued decline in gasoline consumption as well as the shortfall from FY 2019.
