New Jersey Drivers Not Looking Forward To Another Gas Tax Hike
JERSEY CITY, N.J. (CBSNewYork) – As drivers hit the road for Labor Day Weekend, prices at the pump are about to go up in New Jersey.
A new 4.3 cents per gallon tax increase will go into effect in October. But drivers in New Jersey, who already pay some of the highest prices in the country, are feeling the pain.
"It's terrible. I drive 60 miles each way, so any tax on gas would definitely hurt," one man said.
It used to be that people would go to New Jersey because gas was cheaper, but that's now a thing of the past.
"It always falling on the little guy," said another man.
The latest tax hike brings the rate to 41.4 cents per gallon.
"The price is already high, and then more taxes on it? That's outrageous," added another.
The state treasury department said the increase was needed in order to comply with a 2016 law that requires a steady stream of revenue for New Jersey's transportation trust fund, which is used for road and bridge improvements. Under the law, the gas tax rate must be adjusted to generate about $2 billion per year to support the fund, CBS2's Jenna DeAngelis reported.
"Do I think it's necessary? No. But it's New Jersey – it's one of the highest taxed states," a woman said.
This is the second time the gas tax has gone up since 2016. Before that, it wasn't touched in about three decades, DeAngelis reported. But now, experts say New Jersey will go from the eighth highest state in the country to the fifth.
"This is outrageous. I was against the #GasTax from the start. Now I'll continue that fight by introducing a bill to repeal the provision in the law that allows the treasury dept. to automatically raise the gas tax every year. Enough is enough. Taxpayers are not NJ's piggy bank," Sen. Kip Bateman tweeted.
This will go into effect October 1, but you might not feel the hurt right away. AAA anticipates the national gas price average will drop this fall for several reasons, including abundant supplies and lower demand.