TRENTON - Gov. Chris Christie and New Jersey lawmakers have reached a deal on the transportation trust fund.
Gov. Christie announced an eight-year reauthorization of the fund. The fund will be replenished by a 23-cent gas tax increase.
The governor also announced that in order to offset the gas tax increase he would eliminate New Jersey’s estate tax and sales tax would be decreased on Jan. 1, 2017.
The bi-partisan deal to raise $2 billion a year still needs approval in both houses of the Legislature.
The estate tax would be phased out over the next year and a half and the sales tax would be cut by 3/8ths of a percentage point. There will also be tax credits for veterans and the working poor.
It would be the first gas tax hike since 1988.
Gov. Christie had ordered a shutdown of most transit projects earlier this summer.
The Associated Press wire services contributed to this report.