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North Jersey Record

You may not notice if you have not been very careful, but the New Jersey gas tax rose 4.3 cents on Monday.

This is the second time in as many years that New Jersey drivers have been affected by the price increases imposed by the state at the pump. The last increase is a legacy of a Agreement reached in 2016 between former Republican Governor Chris Christie and Democrats to increase gasoline tax by nearly 23 cents to fund construction projects in the state.

More increases, or even decreases, could occur in the future.

Republican lawmakers have decried the latest increase, and one of them has introduced legislation to try to prevent this from happening again.

Here's what you need to know.

Why increase?

The 2016 law requires annual gas tax changes to generate about $ 2 billion a year for the State Trust Fund for Transportation, which funds road repairs and projects to repair gas taxes. bridges and the transit system.

Over the last two years, lower than expected fuel consumption has meant that gas tax recoveries have missed the targets set by Christie's administration. Under the law, the rate must be increased to compensate for the shortfall of $ 125 million last year.

Lawmakers drafted the law in this way to prevent a recurrence of the 2016 stalemate in transportation financing, which led to the Trust Fund for Transport running out of money. 39; money.

It was only after Christie froze most construction projects at the peak of the summer season that the Democrats and Christie reached their agreement, which also included a reduction in the sales tax, the elimination of property tax and other tax reductions.

The New Jersey gas tax had never been lifted for more than 25 years.

Can Republicans block it?

Despite their dissatisfaction, it is unlikely.

Now, as many have done in 2016 when the first gas tax hike took effect, Republicans claim that this new spending will make New Jersey even less affordable for residents already facing new challenges. Property taxes and a high cost of living.

"We can not raise autopilot taxes and we expect it to be good with New Jerseyers," said Jay Webber MP R-Morris at a press conference on Thursday. .

Webber, who is engaged in a close race against Democrat Mikie Sherrill in the 11th congressional district, has called on Governor Phil Murphy to suspend the 4-cent raise and introduced a bill, A-4516. He described the Trust Fund for Transportation as "a top priority", but said the state should cut spending elsewhere to make up for the shortfalls in tax collection on transportation. Rather than transferring the load to the drivers.

But Republicans can not do anything without Democrats, who control both houses of the legislature and the governor's office. Democrats are also not happy about the gas tax hike, but they have not expressed support for the change in the law.

Will the tax on gasoline go down?

This is possible. If fuel consumption were to increase by one year and generate more than $ 2 billion for the state, the tax on gasoline should be reduced, according to the 2016 law.

Some people are skeptical about what will ever happen. As Webber pointed out, New Jersey had one of the cheapest gas in the country, attracting customers from neighboring states. But this comparative price advantage has been eroded or erased by recent increases in the tax on gasoline.

More: Editorial: Another increase in the tax on gasoline? Of course

More: More pain at the pump: the tax on New Jersey gasoline is expected to increase again in October

"When you raise the price of something, people buy less," said Webber.

If the popularity of fuel-efficient or electric cars continues to gain popularity, this could also result in lower fuel consumption in New Jersey, resulting in a further increase in the tax on gasoline.

How does New Jersey compare to other states?

Prior to 2016, the New Jersey gas tax of 14.5 cents was the second lowest in the country, higher than that of Alaska.

With Monday's increase, the New Jersey gas tax will rise above 41 cents per gallon – one of the country's 10 highest, but still lower than the New York and Pennsylvania neighbors, according to the July figures of the Tax Foundation.

Email: [email protected]

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