New Jersey predicts that an increase in consumption will increase gasoline tax revenue, allowing the Murphy government to cut the tax by 8.3 cents per gallon beginning October 1.
Dreamstime / TNS
Ever since New Jersey raised its gasoline tax five years ago, it has automatically increased the tax over the summer to ensure it brings in the $ 2 billion annually it wants.
From one of the lowest rates in the nation of 14.5 cents a gallon, New Jersey has the fourth highest gas tax in America, currently 51 cents a gallon.
At this point last year, the Murphy administration added the last 9 cents to that relentless increase, highlighting the need to overcome reduced vehicle and gas consumption during the pandemic.
A further increase was expected for this year. The New Jersey Globe reported in mid-August that Treasury Department’s released gas tax revenue has fallen by about $ 5 million in the past 13 months. That seemed to add a cent or two to the tax.
But when the announcement came towards the end of the month, the Murphy administration pleasantly surprised New Jersey drivers. It cut gas taxes by 8.3 cents per gallon as of October 1.
Lucky for Governor Phil Murphy to give drivers a month off before seeking their votes for re-election.
Maybe it’s not exactly luck.
State Treasurer Elizabeth Maher Muoio said the reduction was justified as gas consumption is expected to be higher.