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NJPP report recommends extending 7 percent sales tax to gas


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NJPP report recommends extending 7 percent sales tax to gas.
NJPP report recommends extending 7 percent sales tax to gas. - (NJPP / Facebook)

A new report put out Thursday by liberal think tank New Jersey Policy Perspective argues that in order for its economy to remain competitive, the state should increase funding for its Transportation Trust Fund by 25 percent over the next 10 years, from $16 billion currently to $20 billion.

NJPP recommends that rather than increase the per-gallon tax, the state should extend its 7 percent sales tax to gas purchases, thus tying prices automatically to inflation and value over time. Doing so at the current average price of roughly $3.50 per-gallon would yield over $1.2 billion annually and would equate to a per-gallon increase of more than 24 cents, according to NJPP figures.

"It's no surprise that funding for the Transportation Trust Fund has stagnated since New Jersey's leaders have been unwilling to raise additional money to support this important investment," NJPP budget and tax analyst David Rousseau said. "Policymakers haven't increased the tax on gas in nearly 25 years and, as a result, New Jersey's gas tax is now the second-lowest in the nation and the state is running out of options to fund vital transportation needs."

The proposed spending plan would average out to roughly $2 billion per year and would cost the state anywhere from $1 billion to $1.5 billion each year, NJPP estimates. The report also figures in that $20 billion of in-state money would be met with nearly $20 billion in federal funding.

"New Jersey's greatest competitive advantage is its location in the middle of the world's largest market next to New York and Philadelphia," NJPP President Gordon MacInnes said. "This advantage disappears if we do not maintain and modernize our highways, bridges, trains and buses. We must halt the deception that we can do this without cost."


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Andrew George

Andrew George

Andrew George covers the Statehouse from NJBIZ's Trenton bureau. Born and raised in N.J., Andrew has also spent time as a reporter in D.C., Texas and Pa. His email is and he is @AndrGeorge on Twitter.



mrdirt said:
The Garden State has the second highest state and local tax burdens in the nation. Residents in New Jersey paid 12.3 percent of their collective incomes in state and local taxes and on top of that another 10 to 40 per cent or higher for Uncle Sam. No wonder NJ lost (between 2004 and 2008) $70 billion of wealth, and $5.5 billion of wealth departed in 2010 so let's add more taxes to the declining middle class, more companies move out or not relocate to the (Once) Great Garden State.

April 25, 2014 7:40 pm

Jim chrisafis said:
Keeping the roads in good repair at a cost is not the problem . The problem is the crooked legislature willing to keep taking the money ( no matter how much or from where it comes ) and continuously wasting it ! No we should not be thinking of taking any more money from the public - have them cut costs on something else and use that money for road repair.

April 25, 2014 4:07 pm

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