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In the fall of 2016, Governor Chris Christie and the Democratic-controlled Legislature agreed to raise the fuel tax by 23 cents a gallon to finance road and rail projects in New Jersey.
But as these incomes depend on the amount of gasoline that people buy, they also wanted to be assured that they would have enough money to finance these projects.
They agreed that a committee of three people should review the tax return each year to determine whether it was reporting enough, too much, or not enough money to pay the bills.
If gasoline sales are flourishing and the gas tax money goes into the coffers of the state, the treasurer could then reduce the tax. If sales slow down and do not generate enough money, the treasurer could raise the tax.
That's what happened here.
Revenues decreased by $ 125 million from the $ 2-billion target for the year ended June and $ 43 million from the prior year.
Murphy's administration has announced that it needs an additional 4.3 cents per gallon for gasoline and diesel taxes to reach their goal.
Both tax increases occurred after New Jersey had a long period of no increase. Before the increase of 2016, the tax on gasoline has not been increased since 1988.
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