New Jersey motorists are set to endure substantial increases for their traveling needs as Governor Phil Murphy, a Democrat, signed a bill on Tuesday enacting an almost ten cents per gallon rise in the state’s gas tax over the next five years. The bill also imposes a novel registration fee on electric vehicles.
Advocated predominately as a step to replenish the state’s rapidly depleting Transportation Trust Fund (TTF), legislators stand behind the tax hike. The New Jersey Senate and Assembly gave the bill the green light last week, culminating in Murphy’s approval on Tuesday.
Murphy asserts that the revamped gas tax and new EV fee could generate approximately $6.7 billion annually for the TTF, meant to finance maintenance and upgrades for New Jersey’s transportation infrastructure. The tax increase and EV fee become applicable from July 1.
The taxes on gas and diesel in New Jersey are already considered among the nation’s highest, where drivers pay 42.3 cents per gallon of gas and 49.3 cents for diesel. These charges are aligned with state revenue targets and can decrease with surplus or spike amidst a shortage. The approved law also forces EV drivers to contribute $250 annually to the TTF, which will increase by $10 per year until it hits $290 per driver in 2028.
While the legislation proceeded along party lines, lawmakers from both sides expressed concerns about the potential adverse impacts on the state’s motorists.
The tax increase comes as drivers are already struggling with skyrocketing gas prices resulting from the Biden regime’s mishandling of the economy. The average price of a gallon of gas has exceeded $3 for 974 days in a row — or nearly three years — under Biden’s stewardship.
