9 things you need to know about N.J.'s rising gas tax

9 things you need to know about N.J.'s rising gas tax

NJ.om, 16-Oct-16

By The Auditor

It's official: New Jersey's gas tax will go up by 23 cents a gallon in a few weeks (November 1 to be exact) to restart the broke fund that pays for road and rail projects.

But The Auditor knows there's a story behind such sudden pain at the pump.

Here are 9 things you may not have known about the gas tax, the only one Garden Staters could point at with pride and say to America: We pay less than you.

1. It's been around since the year Babe Ruth clubbed 60 homers

The first Jersey gas tax, at 2 cents a gallon, debuted on July 1, 1927. Later that year, the Holland Tunnel opened and construction began on a certain bridge now known for its politically motivated traffic jams.

2. The last time it went up, Reagan was president

The current tax was last raised in 1988, when gas went for 92 cents a gallon and a movie ticket would set you back $3.50.

3. The fund for road projects was designed to never go broke

When the Transportation Trust Fund to finance road and rail projects was enacted, it was supposed to be self-sustaining. Governors and lawmakers were to keep spending in check so loans could be paid off and there would always be enough cash in the bank. Of course, Trenton spent more than it should and didn't pay in enough. File it under boondoggles, right next to pensions.

4. Gas tax for open space?

Gov. Christie Whitman wanted to raise the gas tax and spend some of its proceeds on open space preservation. But Republican lawmakers who were swept into office by lambasting Democratic tax increases weren't open to the idea.

5. It became sacred

The longer the low gas tax remained, the harder it was to raise. Property taxes were sky high, but Jerseyans could always take heart that gas was cheap. Before he signed it, Gov. Chris Christie was the latest to do all he could to avoid raising the tax, and mocked the idea that New Jersey even had a transportation funding crisis while he was wooing Republican voters in a presidential run.

6. What you'll pay

Figure the extra tax will set you back $110 to $170 a year, based on differing estimates on how many miles you drive and how many miles per gallon your car gets.

7. Another Jersey tax near the top

In one fell swoop on Nov. 1, New Jersey will go from having the second lowest gas tax in America to the seventh highest.

8. But ...

Jersey residents will still have local bragging rights, because it will still be lower than the gas tax in New York and Pennsylvania.

9. And you don't have to worry about this

That other sacred Jersey gasoline tradition — a ban on self-serve gas — remains safe. Christie and Senate President Stephen Sweeney have both said they won't dare do anything that could prompt Jersey motorists to splash any of that more-expensive gas all over themselves.

Related News
Christie signs bill raising N.J. gas tax 23 cents a gallon (nj.com)
New Jersey Is Known for Cheap Gas. The Glory Days Are About to End (nytimes.com)