Governor Murphy announced Friday an increase in the state's gas tax rate. Effective October 1, the New Jersey gas tax will increase 9.3 cents per gallon.
Under the 2016 law signed by former New Jersey Governor Chris Christie, the TTF program is required to provide $16 billion over eight years to support critical infrastructure improvements to the state's roadways and bridges.
The law orders that the gas tax rate must be adjusted accordingly to generate roughly $2 billion per year. The law enacted in 2016 contains a specific formula to ensure that revenue is meeting a certain target. When it does not, the gas tax rate has to be adjusted accordingly in order to meet our obligation under the law.
The Department of Treasury says that lower fuel use trends, due in part to COVID-19, necessitated the increase in order to ensure funding to support the state's Transportation Trust Fund (TTF) program.
GNJMA has submitted a letter to Governor Murphy sharing our opposition and requesting an amendment to the legislation. Click here for a copy of the letter.
In addition to gas rates rising from 30.9 cents to 40.2 cents, diesel fuel will also increase from 34.9 cents to 44.2 cents.
