New Jersey Plans Gas Tax Hike to Extend Transportation Fund

A bill introduced in both chambers of the New Jersey Legislature on March 4 outlines a plan to reauthorize the expiring state Transportation Trust Fund (TTF). This proposal involves a gradual increase in the gas tax by almost 10 cents over the next five years, equating to approximately 2 cents per year.

The plan also introduces an annual fee for zero-emission vehicles, commencing at $250 in the first year and incrementing by $10 annually. This fee, distinct from current registration fees, applies to plug-in electric and hydrogen fuel cell vehicles.

The bill, sponsored by Clinton Calabrese, D-Cliffside Park, and approved 7-4 along party lines, seeks to extend the TTF until fiscal year 2029, expanding the existing aggregate bonding capacity to $15.6 billion from around $12 billion. However, the proposed measures have prompted suggestions for amendments from various quarters.

Several speakers representing the construction industry, environmentalists, local government, and auto retailers have weighed in on the bill. Some have recommended amendments, with concerns raised about the punitive nature of the proposed fee on zero-emission vehicles, labelling it as the highest in the country.

While critics acknowledge the balanced and affordable aspects of the plan, they stress the need for amendments to make it fairer and more straightforward.

New Jersey Plans Gas Tax Hike to Extend Transportation Fund

Tom Bracken, president and CEO of the New Jersey Chamber of Commerce, emphasized the plan’s direct linkage between facility usage and fees, highlighting its critical role in supporting infrastructure projects.

Despite some reservations, the bill has progressed through the legislative process, with potential changes awaiting further consideration.

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As the discussion unfolds, stakeholders continue to evaluate the potential impact of the proposed measures on various sectors, including the automotive industry and environmental initiatives.

New Jersey’s efforts to address these challenges will likely influence discussions on a regional and national scale, impacting policies aimed at funding and sustaining crucial infrastructure projects.