Latest News

Gas Tax Alternative Legislation Passes Assembly

Dec 24, 2019

Legislation that would establish a commission to create a new system for taxing vehicle usage, potentially leading to new fees on electric vehicles, passed the State Assembly last week. The legislation (S4090/ A5518), passed 68-7 and now heads to the Senate.

The measure would create a 13-member commission that would be charged with proposing a new way to collect taxes or usage fees from vehicles operating on roads in New Jersey.

The state’s gas and petroleum taxes, including its 48.4 cent-per-gallon gas tax, are the only source of revenue for New Jersey’s $2 billion-a-year Transportation Trust Fund, itself, the primary source of funding for state transportation projects.

With the growing popularity of electric and hybrid vehicles, gasoline consumption has been falling in recent years. The Murphy Administration has set a goal of putting 330,000 electric vehicles on the road in New Jersey by 2025. With that aggressive goal as a backdrop, a new method will need to be devised to ensure there is adequate funds to pay for necessary State transportation projects.