Gov. Murphy signs bill to raise gas tax, new fee for electric vehicles

Gov. Murphy says the funding will cover the cost of maintenance and repairs for roads, highways, bridges, tunnels, railroads and even potholes.

Kimberly Bukowiec and Lanette Espy

Mar 27, 2024, 10:09 AM

Updated 18 days ago

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Gov. Phil Murphy signed a bill Tuesday to increase the gas tax in New Jersey. It's an effort to replenish the state's Transportation Trust Fund.
Murphy says the funding will cover the cost of maintenance and repairs for roads, highways, bridges, tunnels, railroads and even potholes.
  • The new gas hike will increase approximately two cents every year for the next five years.
  • An annual registration fee for electric vehicles starts at $250 beginning in July. The fee would rise by $10 each year before capping out at $290 in July 2028.
The increased gas tax and electric car fee are set to take effect in July.
News 12 New Jersey’s Kimberly Buk visited gas and charging stations around the state to see how drivers feel about the change.
Jeff McDevitt, who moved from Florida to New Jersey, says it’s expensive to live in the Garden State.
“I’ve been here six years, everything's doubled since - gas and cost of living. I don't see myself here long term,” McDevitt said.
“It's expensive to live here in New Jersey. Hopefully in the near future, things will start to go down here. If not, I think a lot of people will move.”
Wendy, a resident from South Jersey, says she has traveled the New Jersey Turnpike for 20 years and says she sees the improvement.
“They're spending money on the roads, and I'm not sure there's a better way,” she said. “I'm a firm believer that everything costs money, and these roads are so busy they need to be in great shape and well-engineered, and there's no substitute for that.”
Tim, who was traveling through New Jersey, says “it's going to hurt the families that are living paycheck to paycheck, to go to work and drive your kids to school, extracurricular activities.”
Maplewood resident Frank said he’s considering getting an electric vehicle. “It’s not really his [Murphy's] fault everything is going up, he's trying to keep it down as much as possible,” Frank said. “I just found out that the tolls in Union just went up again, and I was very surprised about that. I go through it every day, and it's costing me a small fortune.”


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