Lawmakers fast-track bill to raise NJ gas tax by 10 cents per gallon, enact EV fees
The proposed legislation would extend the state's Transportation Trust Fund another five years through a gradual gas tax increase.
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New Jersey lawmakers appear to be fast-tracking a bill to raise the state gas tax.
The proposed gas tax would increase by nearly 10 cents per gallon – and charge a fee on electric cars-- over the next five years.
The proposal was approved by the state Assembly Transportation Committee on Thursday. It will now go to a state Senate panel next week. The plan is being pushed by state leaders to keep up with infrastructure funding. It would generate roughly $6.7 billion a year to help build up the state's Transportation Trust Fund. Gov. Phil Murphy and others who are backing the plan say it's a modest increase when dealing with a densely populated and heavily traveled state.
With the possible increases looming over New Jersey Transit and the MTA, many drivers say they don't know how much more they can take. But Assemblyman Clinton Calabrese, who is backing the plan, says it's a good thing.
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"This will build out our infrastructure, this will create jobs and be an economic boom to the region. It's expected to create about 21,400 jobs per year and that should earn a total of $1.7 billion in wages." said Calabrese.
As for electric vehicles, drivers are currently exempt from the gas tax fee but that would be changed under this plan. Drivers would be charged a $250 fee in the first year. It would increase by $10 each year after, capping at $290.
If it's approved by the Legislature and signed into law by the governor, the higher gas tax and new electric car fee would take effect in July.
