Gov. Chris Christie has signed the legislation recently approved by the New Jersey General assembly that increases the state’s gas tax by 23 cents per gallon to provide increased revenue to the Transportation Trust Fund (TTF).
An impasse on previous legislation to raise the gas tax without agreeable offsetting tax cuts led Christie to shut down TTF projects in July. The new legislation provides cuts to the state sales tax and certain income tax provisions.
“Through this legislation, we are continuing our commitment to providing tax relief for working New Jerseyans of all income levels, senior citizens, military veterans and property owners, while ensuring solid, reliable, state-of-the-art roads, bridges and mass transit systems,” Christie says. “Over the next eight years, a record $32 billion in state and federal funds will be invested in infrastructure improvements and modernizations in New Jersey. This compromise legislation locks in what I called for from the beginning: tax fairness for all residents, leading to a more affordable state and an improved economy.”
Officials estimated the gas tax could cost the average New Jersey citizen an additional $184 to $276 per year, but offsetting tax cuts are estimated to save taxpayers in aggregate $1.4 billion by 2021.