The shutdown of the state’s economy is partly to blame for 9.3 percent hike in New Jersey’s gas tax slated to go in effect Oct. 1, according to information from the New Jersey Department of the Treasury.
Former Gov. Chris Christie faced opposition from his own party in 2016 as he and the Democrat-controlled Legislature proposed requiring $16 billion annually to pay for bridge and road project. The bill gives the state authority to raise or lower the gas tax based on consumption in the previous fiscal year. If the tax rate doesn’t generate $2 billion a year, the gas tax is increased.
Gas consumption declined 38.7 percent from March to May, according to New Jersey Treasurer Elizabeth Maher Muoio.
“Highway fuels consumption took a significant hit in FY 2020 because of the economic downturn caused by the COVID-19 pandemic,” she said in a statement.
With the increase, New Jersey now has the fourth highest gas tax in the nation, and gas prices are about seven cents higher per gallon than in New York; diesel prices will be 14 cents higher, according to information from the New Jersey Gasoline, Convenience, Automotive Association. The tax could be the “death knell for several stations,” said Sal Risalvato, executive director of the association.
“This is going to make it so that New Jersey motorists cross the border to New York rather than purchases in New Jersey, because gas will now be cheaper in New York,” he said.
Gov. Phil Murphy said he had nothing to do with the tax, and he knew of it a “day or two” before and it has nothing to do with the budget.
“It’s not within my control,” he said.
Republicans disagreed, saying Murphy can do something.
“Governor Murphy has not refrained, in the least, from using his executive powers during the COVID-19 state of emergency, making unilateral decisions that have had profound impacts on residents and businesses,” Sen. Christopher Connors, Assemblyman Brian Rumpf and Assemblywoman DiAnne Gove said in a joint statement. “However, his administration is arguing that it is simply following the law by mandating another increase in the gas tax.”
The tax won’t solve the state problems, some Republicans say.
“Today, in the wake of the extended shutdowns under Governor Murphy’s executive orders, the only answer that Trenton has to get our state back on track is to raise taxes,” said Sen. Jim Holzapfel and Assemblymen Greg McGuckin and John Catalano. “This tax should have never been allowed in the first place.”
