For the last three months New Jersey transportation job sites have been mostly quiet. Despite what’s traditionally the heat of summer construction season, shovels have been put down and heavy equipment silenced by the impasse between Governor Christie and leaders from the State Legislature.
On September 30, Governor Christie, Senator Sweeney and Representative Prieto reached a compromise that will fund the State Transportation Trust Fund and get projects moving again. A vote was expected October 5, however the Legislature opted instead to postpone weighing in on the compromise bill a few more days.
The agreed upon bill will raise the gas tax 23-cents per gallon while providing an additional tax offset by gradually reducing the state sales tax. We expect legislators to cast their votes on Friday and urge you to contact your state legislators to tell them to vote “yes” on this measure.
In addition to ensuring the legislature gets their job done this fall, we need you to head to the polls on November 8 to cast a vote on how New Jersey funds its infrastructure this fall. Voters will be asked to consider whether to dedicate all gas and diesel tax revenue to the Transportation Trust Fund (TTF). This will ensure that the investment from the increased gas tax does what its intended to do: improve transportation.
Question 2 proposes dedicating all gas and diesel tax revenue to the TTF. Currently, only the first 10.5 cents of the gas and diesel taxes are dedicated to the TTF, while revenue from the tax on the gross receipts of petroleum products is only dedicated up to $200 million.
Under the current gas tax, closing the gap has the potential to raise an estimated $35 million each year for the TTF. This comes from approximately $20 million by dedicating the remaining 3-cent diesel fuel tax and an additional $15 million from the 4-cent gross petroleum product tax. If passed, revenue gains for roads and bridges will likely increase once the new gas tax rate is put into effect.
Take stock of New Jersey’s roads and make sure you’re doing your part to give the state the 21st Century Infrastructure it deserves!
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