Posted by 30 August 2020
Buying gas in New Jersey will cost more starting October 1.
Last week, State Treasurer Elizabeth Maher Muoio announced that the gas tax would be increased by 9.3 cents in a month. This is the result of a 2016 state law that requires a steady level of revenue for transportation projects. The law requires that tax rates be adjusted yearly to obtain that revenue. This year, with driving down because of the coronavirus pandemic, gas tax revenue decreased dramatically. That set the stage for an automatic gas tax hike for New Jersey drivers in the coming fiscal year.
The tax hike will mean that for every gallon of gas purchased in New Jersey, 50.7 cents will be paid in taxes. Currently, the state has the 10th highest gas tax rate. After October 1, it will have the 4th highest rate in the nation.
This impending tax increase has critics. They say it is coming at an especially bad time for both consumers and businesses. They argue that consumers who are already suffering from high unemployment and an economic slowdown cannot afford to pay higher gas prices. They also contend that New Jersey businesses that sell gas will be hurt by this increase.
Unless legislators change the law, however, this gas tax will go into effect automatically.
Do you support increasing the gas tax?