Gov. Phil Murphy has signed a gas tax bill intended to replenish the state’s Transportation Trust Fund. The bill also establishes a $250 annual fee for electric vehicle registration.
In New Jersey, the tax on gasoline adjusts each year based on a preestablished revenue target. The bill signed by Murphy March 26 allows the revenue target to rise from $1.6 billion to roughly $2.4 billion by July 2028. The result will most likely be an approximate 2-cent-per-gallon increase in the tax per year.
Predictions are less certain than in the past because gasoline consumption is falling with the gradual turn to electric vehicles. Some opponents of the bill warned that the tax increase over its few years could be higher than projected if consumption falls faster than expected, because the revenue target must still be met.
Under the legislation the annual registration fee for electric vehicles goes up by $10 per year until it caps at $290 per year in July 2028. This is the mechanism being used to have EV owners contribute to the trust fund that supports bridge, rail and road work throughout the state. New Jersey plans to phase out sales of all new gas-burning vehicles in the state by 2035.
With the bill’s signing the first hike in the revenue target that drives the gas tax will occur July 1, when the target can move from $1.6 billion to $2 billion.
Contact the author, Vince Conti, at vconti@cmcherald.com.
