Gas Tax Hike Could Kill New Jersey's Famously Low Pump Prices

by Steph Willems

Published: June 23rd, 2016

gas tax hike could kill new jersey s famously low pump prices

A looming bump in New Jersey’s gas tax would mean fewer drivers from neighboring states crossing the Hudson and Delaware Rivers to take advantage of the state’s famously low pump prices.

The state’s transportation fund is almost empty, roads and bridges need repairs, and Democrat lawmakers and select Republicans are putting pressure on Governor Chris Christie to send the gas tax skyward, according to the New York Times.

How much higher? Try 23 cents/gallon more.

New Jersey residents now enjoy the second-lowest gas tax in the nation, at 14.5 cents/gallon. (That includes a 10.4-cent motor fuels tax and a 4-cent petroleum products tax.)

State Democrats want to raise the tax to 37.5 cents per gallon, citing a $46 million budget shortfall at New Jersey Transit and the poor condition of the state’s infrastructure. The American Society of Civil Engineers gave New Jersey’s transportation infrastructure a D-minus grade in its 2016 report.

A gas tax hike would allow the state to raise $20 billion in funds over the next decade. Christie kiboshed past attempts to raise the tax, but cracks are forming in the Governor’s resolve. The Democrats propose to repeal the state’s estate tax as a way of luring the other side into agreement.

“There is a lot of work that needs to be done,” Mr. Christie said in the Times. “There is a lot of show-me that has to be done. But as you know, at the end of any session, miracles happen.”

According to GasBuddy.com, New Jersey’s lowest pump price this morning was $1.87/gallon, found at several North Brunswick Township stations. The state average of $2.11 undercuts the national average of $2.32/gallon. Compared to its neighbors, New Jersey drivers are laughing. New York’s average price this morning is $2.43, and Pennsylvania’s is $2.50.

The state’s transportation department would still receive federal funding if the fund runs out, but state-financed projects won’t get off the ground.

[Image: GasBuddy.com]

#GasPrices #GasTax #Gasoline #Government #NewJersey #Taxes

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3 of 55 comments

RHD on Jun 23, 2016

If they raise the gas tax three cents the first month, then a penny per month over two years, no one would even notice. The law has to be written with a poison pill: a stipulation that if any of it gets diverted to anything other than its originally intended purpose, then it gets immediately revoked, and gas prices will immediately fall to pre-tax levels.

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- Truecarhipsterdouche on Jun 23, 2016
  
  Come on...this is the government we're talking about...do you really think taxes go to improving the lives of regular, hardworking, taxpayers? NIET!!!
  
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WildcatMatt on Jul 13, 2016

Almost no one crosses the rivers just to get gas and save a few cents at the pump, because all the major crossings are tolls (and don't bring up Scudders Falls, it's free today but will be tolled as soon as the rebuild is complete). Yeah, if you'll be in NJ for some reason anyway you may fill up your tank, but that's different. If this goes through, I wonder whether there will be a new push to change the law to allow customers to pump their own gas, with the stated purpose of knocking a few cents a gallon off the price.

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