TRENTON-The same lawmakers who passed New Jersey’s outrageous 23 cents per gallon gas tax are now scaling back after realizing the gas tax, which was meant to provide property tax relief has actually contributed to increases in local property taxes.
New Jersey, once known for cheap gas prices is now among the most expensive states in America to purchase gasoline.
One state senator wants to exempt the government from this crippling tax.
New Jersey Senator Steven Oroho’s prososed bipartisan legislation would exempt school buses, police cars and other government vehicles from the state’s disastrous motor fuel tax.
The bill has passed the Senate Budget and Appropriations Committee.
“Local governments should not use the property taxes they collect from residents to pay other taxes to the state,” Oroho said. “Government vehicles such as police cars, fire trucks, and ambulances are currently exempt from the state gas tax. Adding school buses to the list is a commonsense, tax-saving move that will benefit all New Jersey residents.”
Sen. Oroho’s bill, S-1697, clarifies that both public and private school buses will not have to pay New Jersey’s petroleum tax.
“Exempts fuel used for operation of certain school buses from petroleum
products gross receipts tax and motor fuel tax; clarifies tax treatment of certain
dyed fuel thereunder; clarifies determination of taxable estates of certain
decedents,” the bill states.
Oroho said the legislation is designed to reduce the burden on property taxpayers and improve road, bridge, and rail safety, but does nothing for New Jersey residents who are taking a huge hit at the pump each time they fuel up.
“We’re now able to shift much more of the burden of paying for local transportation improvements from property taxpayers to the state,” Oroho added. “Local officials can now undertake critical road and bridge repair projects without burdening property taxpayers with the full cost. This bill is another step forward in the right direction.”
New Jersey residents will continue paying 37.5 cents per gallon in tax to the state if the bill passes. New Jersey is currently ranked 10th highest in the United States when it comes to gasoline tax.