Just weeks after first being introduced, at an event in Aberdeen this morning, New Jersey Governor Phil Murphy signed a bill today which which aims to replenish the state’s Transportation Trust Fund by raising the gas tax.

Under the new law, the gas tax would increase by almost 10 cents in the next five years — about 1.9 cents each year, beginning July 1st.

The bill was approved by a 24-14 vote in the Senate, and 48-28 in the Assembly.

“New Jersey sits at the heart of one of the busiest stretches of commerce in the entire world,” Murphy said.

“Whether it’s trying to get home to their families after a long day or shipping critical goods to keep our economy humming, our residents and our businesses depend on the strength of our transportation system to get where they need to go. This legislation will ensure we deliver for them by enabling us to rebuild and maintain our entire transportation system, while creating thousands of good-paying jobs in the years to come and easing the burden of property taxes by offsetting these costs for local government,” he added.

State Senator Bob Singer (R-30) was the sole Republican to vote in favor in the Senate.

Assemblymen Avi Schnall (D-30) and Sean Kean (R-30) also voted in favor of the bill which can potentially bring much needed infrastructure-dedicated funds for the district.

The reauthorization provides approximately $10.37 billion in appropriations for the State’s Annual Transportation Capital Program from FY2025 to FY2029. Of that, an estimated $2.3 billion will be State aid for county and municipal transportation projects.  

The bill also institutes an additional tax for zero emission vehicles registered in the State, which would be collected at the time the vehicle is initially registered or renewed.

Also beginning on July 1, 2024, the amount of the fee would be $250 and increase by $10 on July 1 of each year until 2028. After that time, the amount of the fee would be set at $290.

This new hike would be the first major change to the transportation trust fund revenue formula since 2016, when lawmakers approved a deal that reduced the state’s sales tax and eliminated its estate tax in exchange for more than doubling its levies on gasoline and diesel.

Before the 2016 law, New Jersey’s gas tax was the second lowest in the country.

Today, New Jersey’s 42.3-cent-per-gallon tax on gasoline and its 49.3-cent tax on diesel are among the nation’s highest.

The New Jersey Transportation Trust Fund, which is used to maintain and renovate the state’s roads, bridges and rail infrastructure, was established by the Legislature in 1984 and has since been reauthorized seven times.

The last reauthorization in 2016, under the Christie administration, occurred after the previous authorization had expired, halting projects until a new agreement could be reached.