The New Jersey Department of the Treasury announced today that the state’s gas tax rate will increase by 4.2 cents per gallon beginning January 1 as a result of the law signed last year which gradually raises the State’s Highway Fuel Cap from Fiscal Year 2025 through Fiscal Year 2029.
New Jersey’s Transportation Trust Fund (TTF) program is required to provide nearly $11 billion over five years to support critical infrastructure improvements to the State’s roadways and bridges. In order to ensure the State has the funds necessary to support these projects, the law dictates that the Petroleum Products Gross Receipt Tax (PPGRT) rate must be adjusted accordingly to generate enough revenue to meet the statutory Highway Fuel Cap for that fiscal year.
What is generally called the “gas tax” or the “highway fuels tax” is actually two separate taxes on gasoline and diesel fuel – the Motor Fuels Tax and the PPGRT.
Under the formula explicitly outlined in Chapter 7, the PPGRT rate will increase on January 1, 2026 from 34.4 cents to 38.6 cents for gasoline and from 38.4 cents to 42.6 cents for diesel fuel. When combined with the Motor Fuels Tax, which is fixed at 10.5 cents for gasoline and 13.5 cents for diesel fuel, the total tax rates that motorists will pay for gasoline and diesel fuel will be 49.1 cents and 56.1 cents, respectively.
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 eight 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.
Why don’t electric cars have to share the burden of funding the roads, especially considering that they wear out the roads more, because if the weight of their batteries
They actually share the burden,
New Jersey has implemented a new fee structure for electric vehicle (EV) owners to compensate for the absence of gasoline tax payments, which traditionally fund the state’s transportation infrastructure. Starting July 1, 2024, EV owners must pay an annual $250 registration fee, which increases by $10 each year until it reaches $290 by 2028.
Googles A.I. says “The average New Jersey driver pays about $431 in gas tax per year, based on an annual gas tax of approximately $44.9 cents per gallon and average driving habits. This calculation assumes 24,000 miles per year and a fuel efficiency of 25 mpg, which requires about 960 gallons of gasoline annually ($0.449 per gallon * 960 gallons = $431.04). which is nearly double the ev registration fee.” So it’s still nearly double the ev registration fee.
Don’t use AI Overviews to get answers to specific questions. I mean the very subject of the article is the cost of the gas tax, which you have stated as $0.449 and the article has as $0.344.
The actual annual miles for NJ is 11,349mi.
(LLMs cannot, in general, do math. This snippet’s arithmetic is correct, so we can assume there is an internal calculator tool that does the raw calculation.)
The correct calculation is: 11349mi ÷ 24.6mpg = 461.34gal → × $0.344 = $158.70