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New Jersey's gas tax climbing by nearly 3 cents starting New Year's Day

Filling up your vehicle’s gas tank in New Jersey will cost an extra 2.6 cents a gallon starting on New Year’s Day

Via AP news wire
Monday 02 December 2024 18:11 GMT
US New Jersey Gas Tax
US New Jersey Gas Tax (Copyright 2022 The Associated Press. All rights reserved.)

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Filling up your vehicle's gas tank in New Jersey will cost an extra 2.6 cents a gallon starting on New Year's Day.

Democratic Gov. Phil Murphy's administration said Monday the state's gas tax will climb about 6% to 44.9 cents a gallon.

The change stems from a review required under a new law to support the state's fund for transportation infrastructure through 2029. State Treasurer Elizabeth Maher Muoio said that in order to hit a statutory target of about $2 billion, the law requires the tax on petroleum products be adjusted to meet the revenue requirement.

The increase would keep New Jersey among the top 10 or so states with the highest tax on gasoline in the country, according to nonprofit Tax Foundation.

The tax rate can go up or down under the law. Under the previous transportation trust fund legislation, the rate was evaluated every summer, and went up less than a penny last year. The year before that it dropped by a penny, while it decreased by 8.3 cents in 2021.

The national average for a gallon of gas is $3.05, according to AAA, higher than New Jersey's average of $2.98.

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