TRENTON, N.J. — You can’t just blame Democrats and New Jersey Governor Phil Murphy when the price of gas increases in the new year. That’s right, several New Jersey Republican lawmakers at the Jersey Shore gave Democrats the green light on this year’s increase.
New Jersey drivers will see a 2.6-cent-per-gallon increase in the state’s gas tax starting January 1, 2024, following the passage of a transportation funding bill supported by several Republican lawmakers earlier this year.
The tax hike is part of broader revisions to the state’s “New Jersey Transportation Trust Fund Authority Act of 1984” that fund the Transportation Trust Fund (TTF), which supports infrastructure projects across the state. The measure also extends the TTF’s bonding capacity through 2029 and increases the overall tax revenue target for highway fuels annually through 2029.
The bill, Assembly Bill 4011, passed the state legislature in March and was supported and voted yes to by Republican Senators Robert Singer, James Holzapfel, and Tom Kean, along with Assemblymen Rob Clifton and Alex Sauickie.
Senators Carmen Amato and Michael Testa opposed the legislation, voting no to the bill earlier this year.
In addition to raising the gas tax, the law imposes a new annual fee for zero-emission vehicles, starting at $250 in 2024 and increasing incrementally until 2028. These fees will be deposited into a capital reserves subaccount of the TTF to support transportation projects but cannot be used for debt service on bonds.
State officials say the changes are necessary to meet rising transportation infrastructure costs and ensure funding stability for ongoing and future projects.
The new gas tax increase and additional vehicle fees are part of a five-year plan to maintain and expand New Jersey’s transportation systems.
