New Jersey drivers are in for higher costs after Governor Phil Murphy, a Democrat, signed a bill on Tuesday raising the state's gas tax by nearly 10 cents per gallon over the next five years, as well as imposing a new registration fee for electric vehicles.
Lawmakers backed the gas tax hike as a solution to replenish the Garden State's dwindling Transportation Trust Fund (TTF). The TTF is overseen by an independent agency, the Transportation Trust Fund Authority (TTFA), whose job is to finance the cost of "planning, acquisition, engineering, construction, reconstruction, repair, and rehabilitation of the state's transportation system," according to the New Jersey State League of Municipalities' website.
The TTF was set to expire on June 30 but was extended until the fiscal year of 2029 thanks to the bill, A4011, which was passed by the New Jersey Senate and Assembly last week and signed into law by Murphy on Tuesday.
According to Murphy, the gas tax hike and the annual fee on EVS would generate about $6.7 billion per year for the TTF, which the program would use for maintenance and repairs works on the state's roads, highways, tunnels and bridges, among other things. The gas tax increase and electric car fee are set to take effect starting July 1.
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"America depends on the strength of New Jersey's transportation system," the New Jersey governor said. "If our infrastructure falls behind, our entire economy falls behind, and worst of all, our families would pay the highest price in the form of costly delays and missed opportunities."
Assemblyman Clinton Calabrese, one of the primary sponsors of the bill, said that without the renewal of TTF, "ongoing projects will languish and costs will skyrocket—reminiscent of the hardships endured during previous shutdowns that some of you may have been here to face."
Newsweek contacted Murphy's office and Assemblyman Clinton Calabrese's office for comment by email on Tuesday.
New Jersey already has some of the highest gas taxes in the country, with drivers paying a 42.3-cent-per-gallon tax on gas and a 49.3-cent tax on diesel. These taxes are adjusted to help the state hit revenue targets—which means that they can decline when there's a surplus, or they can be increased in case of inadequate funds.
While New Jersey's roads and bridges are maintained mainly through gas taxes, the new law would force drivers of EVs to contribute to the TTF with an annual $250 fee that would increase by $10 a year to reach $290 by 2028.
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While the New Jersey legislature passed the bill along party lines, both Democratic and Republican lawmakers complained that the new legislation would harm drivers in the state. Sen. Bob Smith of Middlesex, a Democrat, said that the new bill was a "policy mistake" for penalizing EV drivers, but still voted in favor of the legislation.
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Giulia Carbonaro is a Newsweek Reporter based in London, U.K. Her focus is on U.S. and European politics, global affairs ... Read more
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