New Jersey residents wonder when they will find relief as NY suspends gas tax

New York state has suspended its gas tax temporarily, and many in New Jersey now wonder when they will find relief.

News 12 Staff

Jun 1, 2022, 9:22 AM

Updated 745 days ago


New York state has suspended its gas tax temporarily, and many in New Jersey now wonder when they will find relief.
The news comes as the national average for gas broke another record today. New Jersey is well-above the national average.
New York officially suspended its gas tax through the end of 2022. It is expected to save drivers about 16 cents per gallon. New York legislators say that this will lead to $600 million in savings for New York residents. The legislation also allows individual New York counties to reduce their local gas taxes.
Rockland County – near New Jersey's border – has capped the local sales tax at $2. This means that only the first $2 of gas going into a vehicle's tank will be taxed at the county level. This will run through February.
"I don't go to New York just because it's cheaper, because there is a toll that I have to take in consideration, but if I'm driving there and I need gas and it's cheaper, of course we buy cheaper,” says Carlos Meaciel, of Newark.
News 12 reached out to Gov. Phil Murphy's office to see if there is a chance the Garden State might suspend the gas tax.
The Murphy administration pointed to a proposed state budget that prioritizes affordability for residents in other ways, including property tax relief programs and increased funding to schools.
The governor's office responded in a statement, "While the state is currently reviewing options to provide relief for residents facing rising inflation, [Gov. Murphy] continues to support federal action to temporarily waive the gas tax."
That's the federal portion, which equates to about 18 cents per gallon.
News 12 is told New Jersey's state gas tax revenues are constitutionally tied to the Transportation Trust Fund, so waiving the cost now would create budgetary shortfalls that would need to be funded by other revenue streams.
In New Jersey, 42 cents a gallon goes toward the state gas tax - compared to the average state portions of 27 cents per gallon nationwide.

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