With a pair of bills passed on October 7th, New Jersey is tackling its funding issues for transportation and infrastructure projects in part by raising diesel fuel taxes in the state by 31 cents.
This marks the first time since 1988 that the state has raised fuel taxes. The increase will bring New Jersey’s current standing as the state with the second-lowest fuel tax to the state with the seventh-highest fuel tax, according to NJ.com. It will be raised by 23 cents first, then by an additional 4 cents, and then again by another 4 cents, totaling 31 cents by July 1st, 2017.
While many in the trucking industry cry foul any time the fuel tax is raised, some are praising the increase, saying that it is long overdue and will allow the state to repair their crumbling infrastructure. Others point to Rhode Island’s truck-only toll plan, claiming that fuel taxes aren’t so bad in comparison – especially when the burden of a fuel tax is also shouldered by cars.
Some who voiced their dissatisfaction with the increase did so to say that the increase didn’t go far enough. As it stands, the increase is part of a program which will only be able to finance eight years of road work. And after that, critics claim, the state will again be out of money, scrambling to find a way to pay for much-needed repairs.
In fact, some critics claim that the increase in the gas tax isn’t even the worst part. In order to sell the tax increase, the state cut taxes and gave out credits that will cost the state $1 billion every year. This could actually make it even harder to pay for transportation projects in the future.
According to the Asbury Park Press, because of “gentlemen’s agreements,” more than half of the money raised by the gas tax will go towards projects other than repairing roads and bridges. The projects include extending light rail lines, freight rail connections to ports, subsidizing NJ Transit’s operating budget, and paying off old debts.
“This program is hobbled by an insufficient amount of revenue and an excessive amount of giveaways,” said John Wisniewski, a state representative. “That will not only lead to insolvency in the trust fund in eight short years, but insolvency in the general fund at almost the same time.”
Source: northjersey, overdrive, app, nj
First they say diesel fuel tax and then they say fuel tax. What is it? Gasoline and diesel or just diesel?
A question? Why do trucks have to subsidize the railroad. Don’t they pay fuel tax? Sorry that was 2 questions
No They don’t pay fuel Tax …. They run Offroad Diesel tax free
Once again….boycotts work!!!
the po people in jersey needs some mo money so theys can gets a 65′ samsung and get rid of there 50 inch and upgrade there 24 inch crome wheels to 26 inch
I never fueled in NJ anyway.
This Bill that was passed had nothing to do with fixing their roads or bridges, and as you see it says ‘OLD DEBT’. This Bill was passed because previous administrations have screwed the pooch on State employees retirement funds, and the state is suppose to kick in a large sum of funds, but they don’t have it because previous administrations have kicked the can down the road. Now Gov. Christie is trying to help make up the funding, and has picked the easiest people to pick on…TRUCK OWNERS. This does affect drivers too because it sure makes it hard to hire someone if you are paying the outrageous cost of diesel fuel. I do NOT run the Northeast past Ohio, or higher than Virginia. I personally don’t give a damn if they need anything overnight, or food to eat, there are others that will go there, and then the ones that live there that will pick up the slack. Plenty of freight between I-75 and I -25, I-10 and I-80. Be safe always, and may the good Lord bless you.