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An Increased Gas Tax Will Help NJ Drivers Save Money

Rutgers University’s Eagleton Center for Public Interest Polling recently released the results of a poll regarding public support for an increase in New Jersey’s gas tax. The results are hardly shocking: nearly two-thirds of adult voters in New Jersey oppose any hike, while roughly one third supports paying more. It’s not surprising that people are reluctant to pay more for something willingly.

But what was surprising was that once people learned New Jersey’s most recent gas tax increase was 26 years ago, and that at 14.5 cents per gallon it’s the third-lowest gas tax in the nation, they were more likely to favor higher gas taxes. In other words, the more people know about New Jersey’s gas tax, the more they are inclined to support an increase.

This made us wonder if and how respondents’ answers might change if they knew even more about the desperate state of transportation funding in New Jersey. Currently, 100 percent of the dedicated revenue generated by the gas tax is going toward paying off debt, and not toward funding transportation projects. Over 11 million motorists drive over a structurally deficient bridge in New Jersey every day, and more than 40 percent of NJDOT pavement was not in acceptable condition as of last year. (Given the beating roads have taken this year, that number may have grown.)

And while the poll did not provide any insight into how high a gas tax increase was being considered, it is more important, however, that motorists are aware that even a small increase would go a long way. Pennsylvania Governor Tom Corbett signed a new transportation funding law that gradually increases taxes on motor fuels as part of a plan to increase transportation revenues, and Delaware Governor Jack Markell also publicly announced support for a 10-cent gas tax increase to help pay for transportation projects at an average cost of $4.78 a month for Delaware drivers.

A similar 10-cent increase in the Garden State would cost the average driver even less — roughly $4.35 a month – or less than $53 per year. That’s a far cry from the more than  $600 per year New Jersey drivers are currently spending on additional car maintenance directly related to the poor condition of the state’s roads. That makes for an interesting argument for Governor Christie and New Jersey’s legislators: An increased gas tax with revenue dedicated to transportation will actually help New Jersey drivers save money each year.

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Max Power
Max Power
10 years ago

The citizens on NJ are understandably suspicious that any of the increased revenue from the gas tax will actually go to fix the roads, instead of adding to Christie’s slush funds, or just to pay increased bids for the same minimal level of maintenance.

orbit7er
orbit7er
10 years ago

Actually I believe that even WYOMING an oil producer has increased their gas tax making New Jersey 2nd lowest after oil producer Alaska!
We need to be realistic and aim for a rolling series of gas tax increases with a major portion going to Green Transit instead of more highway widening or mistakes like a new Autos only Bayonne bridge instead of extending Hudson-Bergen Light Rail to Staten Island.
Another critical point is that New Jersey literally has out of state drivers over a barrel! Trucks and other vehicles going either North-South or East-West have to go through New Jersey. So why are we giving them such a break on the gas tax that drivers from New York & Pennsylvania routinely come over to New Jersey to buy gas as our other tax dollars go to pay for the roads they are getting their cheap gas with?
If we were smart we would be making sure to get those gas taxes from all those trucks and vehicles on their way to Boston, New York, Philadelphia so we could then restore our 1,000 miles of Rail and run the Rail we have and connect with buses and shuttles.
Instead we are paying with our other taxes since gas tax does not come near the true costs of Auto Addicted transit in terms not only of paving but traffic cops, traffic courts, ambulances for traffic accidents, etc etc

RJA
RJA
10 years ago

Yes – the NJ gas tax is one of the lowest in the country. Problem is that it is the only tax with that distinction. NJ property taxes are the highest in the country, personal and corporate income taxes are among the highest, the sales tax is one of the highest. Added to that are the ridiculously high utility rates (especially electricity)and insurance costs and business costs. Bottom line, NJ has one of the highest overall tax rates in the country – think it is number 1 or 2 and the cost to live here is causing its more affluent residents to vote with their feet and move to more cost friendly environs (like TX, FL, VA) which raises the costs for those who remain. (Think how many Congressional seats NJ has recently lost).

Is it no wonder NJ residents have said ENOUGH, even tot raising the gas tax!!

Rebecca
Rebecca
10 years ago

RJA is absolutely right.

And to add another though, what about the gax tax revenue that NJ gets from out-of-state residents who purposely stop in NJ to buy gas that’s less expensive? Raise the NJ gas tax, and people from New York, Pennsylvania, and other states will no longer purposely buy as much gas as possible when they’re in New Jersey, which will defeat the purpose of raising the gas tax.

Any time I’m in NJ I purposely fill up my tank before heading home – but I won’t continue to do that if NJ’s gas all of a sudden gets more expensive.

There’s got to be a ton of ways to streamline other costs – how about making NJ more storm-resilient to avoid multi-billion-dollar hurricane/storm losses? – besides raising taxes yet again, on people who are already taxed to pieces.

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