Pump It Up: NJ Gasoline Tax to Increase 9.3 Cents Per Gallon Oct. 1

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    TRENTON, NJ – New Jersey’s gasoline tax is scheduled to increase 9.3 cents per gallon effective Oct. 1 to ensure compliance with the 2016 law that requires a steady stream of revenue to support the state’s Transportation Trust Fund (TTF) program.

    This is one tax hike that cannot be blamed on Gov. Phil Murphy. His predecessor, former Gov. Chris Christie, signed off on the mechanism and formula used to calculate the tax each year. The economic downturn caused by the COVID-19 pandemic also had an impact.

    “As we’ve noted before, any changes in the gas tax rate are dictated by several factors that are beyond the control of the administration,” said state Treasurer Elizabeth Maher Muoio.

    “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 for us to meet our obligation under the law and fully fund the state’s many pressing transportation infrastructure needs, » she explained. « Highway fuels consumption took a significant hit in FY 2020 because of the economic downturn caused by the COVID-19 pandemic.”

    The state’s TTF, funded by gasoline tax revenue, is used to pay for rail, bridge and roadway infrastructure improvements and new construction.

    The increase will push the state gasoline tax to 50.7 cents per gallon; tax on diesel fuel will increase to 57.7 cents per gallon. Since the funding law was enacted, New Jersey’s gasoline tax has increased over 36 cents per gallon.

    After state legislators approved the plan signed by Christie, the state’s gasoline tax, which had been one of the lowest in the United States, jumped from 14.5 cents to 37.1 cents.per gallon.

    Consumption of gasoline declined by a total of 38.7 percent from March to May, according to Muoio, while diesel fuel consumption declined by 16.5 percent. Consumption of gasoline and diesel fuel continues to be depressed as many people continue to work from home and limit extracurricular activity.

    Under the 2016 law signed by Christie, New Jersey’s TTF program is required to provide $16 billion over eight years to support critical infrastructure improvements to the state’s roadways and bridges.  In order to ensure the state has the funds necessary to support these projects, the law dictates that the Petroleum Products Gross Receipt (PPGR) tax rate must be adjusted accordingly to generate roughly $2 billion per year. 

    A statutory formula determines how much the PPGR tax rate is to be adjusted annually in order to meet the Highway Fuels Revenue Target.

    The HFRT is required to be reviewed annually each August by the Treasurer, in consultation with the Legislative Budget and Finance Officer (LBFO).  This process just concluded, with Muoio and LBFO Frank Haines consulting on revenue numbers.

    The tax rate is to be adjusted at the start of each year based on the prior fiscal year’s shortfall or surplus. If last year’s revenue was below target, then the cap must rise to make up the shortfall or be lowered to account for the surplus.

    The PPGR tax rate is then re-calculated to meet the current year’s updated Highway Fuels Revenue Target. The Highway fuels revenue collections in FY 2020 are projected to fall short of the FY 2020 Highway Fuels Revenue Target by $154 million.

    Also looming ahead in mid-September for New Jersey motorists are toll hikes on the New Jersey Turnpike, Garden State Parkway and Atlantic City Expressway – approved by Gov. Phil Murphy.

    Murphy also proposed a series of tax increases in his 2020-21 $32.4B state budget introduced earlier this week, including higher taxes for millionaires and higher-earning businesses, cigarettes, boat sales and guns and ammunition.

    HILLSBOROUGH, NJ – Somerset County and Hillsborough are sponsoring Operation Secure Shred on Saturday, Aug. 29, at the Somerset County Public Works Garage, South County Facility, located at 410 Roycefield Road fom 9 a.m. to 1 p.m., or until the trucks are filled.

    The event is a free and easy way for residents to help guard against identity theft and protect the environment. Residents can watch …

    SOMERVILLE, NJ – The Somerset County Department of Health on Thursday reported a total of 4,843 cases of the COVID-19 coronavirus, an increase of 9 cases overnight, along with 492 deaths since the first case was reported March 8.

    KENILWORTH, NJ – Attilio Guarino, owner of Ava’s Kitchen & Bar in Kenilworth, says enough is enough and plans to open for indoor dining on Tuesday, Sept. 8. 

    Nearly all restaurants, with the exception of those who can open two walls for better ventilation, have been banned from serving food and beverage indoors since Gov. Phil Murphy’s Executive Order back in mid-March. As restaurants …

    KENILWORTH, NJ – Attilio Guarino, owner of Ava’s Kitchen & Bar in Kenilworth, says enough is …

    The recent cancellation of a pipeline project under new policies claimed to protect the environment has instead resulted in a “virtual pipeline” of up to a hundred tanker trucks per day transporting natural gas on New Jersey roads. 

    They are needed to meet growing energy demands but threaten the safety of our residents and increase emissions in the process, Affordable Energy for New Jersey …

    The recent cancellation of a pipeline project under new policies claimed to protect the environment …

    WASHINGTON — The Department of Justice has requested COVID-19 data from the governors of New Jersey and three other states that issued orders which may have resulted in the deaths of thousands of elderly nursing home residents.

    According to the Justice Department, New Jersey, New York, Pennsylvania, and Michigan required nursing homes to admit COVID-19 patients to their vulnerable …

    TRENTON, NJ – Gov. Phil Murphy has issued an Executive Order that will allow New Jersey’s gyms to re-open on Tuesday, Sept.1 with a capacity level of 25% and a strong adherence to COVID-19 sanitary precautions.

    Masks must be worn at all times during workouts. New Jersey’s gyms have been closed for six months, except for personal, individualized training and outdoor classes.

    TRENTON, NJ – Gov. Phil Murphy has issued an Executive Order that will allow New Jersey’s gyms to …

    TRENTON, NJ — Attorney General Gurbir S. Grewal announced the arrests of 21 suspects Wednesday, all of whom are charged with sexually exploiting children online.

    The 19 men, one woman, and one juvenile male were arrested in “Operation Screen Capture,” a collaborative operation launched in response to a dramatic increase in reported potential threats to children from online predators during the …

    TRENTON, NJ — Attorney General Gurbir S. Grewal announced the arrests of 21 suspects Wednesday, all …

    SOMERVILLE, NJ – Gov. Phil Murphy stood behind a podium in the end zone of the Somerville Pioneers football field early Wednesday morning to announce an additional $100M in funding for New Jersey schools.

    The money will come from the federal government Coroanvirus Relief Fund, according to the governor, who noted it was the second day in a row he had stood on a football field to talk …

    SOMERVILLE, NJ – Gov. Phil Murphy stood behind a podium in the end zone of the Somerville Pioneers …

    SOMERVILLE, NJ – Rich Dupras, Jr. ’78, a resident of Hillsborough, has been named the 2020 Mackie Award winner for his service to his alma mater, Immaculata High School in Somerville.

    Initiated in 2008, the Mackie Award is presented at the annual Immaculata Golf Classic, held this year on Monday, Sept. 28th at Heron Glen Golf Course in Ringoes.

    SOMERVILLE, NJ – Rich Dupras, Jr. ’78, a resident of Hillsborough, has been named the 2020 …

    SOMERVILLE, NJ – The Somerset County Department of Health on Tuesday reported a total of 4,830 cases of the COVID-19 coronavirus, an increase of 7 cases overnight, along with 491 deaths since the first case was reported March 8.

    The New Jersey Department of Health Tuesday reported a total of 190,021 positive cases of the …



    SOURCE: https://www.w24news.com

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