New Jersey’s Cheap Gas Prices? Fuhgeddaboutit!
The Garden State, which has enjoyed the second lowest gasoline prices in the nation, will begin taxing drivers 23 cents a gallon to aid the state’s expired transportation trust fund, which pays repairs for to the state’s highways.
The transportation trust fund ran out of money three months ago, and the state’s governor, Chris Christie, ordered the shutdown of transportation projects involving roads, bridges, and rails.
It wasn’t only state residents who benefited from the low fuel prices: they coaxed many New Yorkers and Pennsylvanians across state lines and one FBT staffer recalls that he was under orders from his parents to fill up his car’s tank whenever driving through the state.
To compensate, the new measure will decrease the state sales tax from 7% to 6.875% in January and further lower it to 6.625% in July. It would also phase out New Jersey’s estate tax, first by changing the threshold from $675,000 to $2 million in 2017 and completely eliminating it in 2018.
The New Jersey State Legislature reported that the increase in tax and commensurate increase in gas prices will raise the amount drivers spend on fuel each year by $184 to $276 per vehicle.
(Photo: Accura Media Group)