The End of Cheap Gas in New Jersey as Tax Hike Goes Into Effect

The End of Cheap Gas in New Jersey as Tax Hike Goes Into Effect

LIVE TVON NOWClick for full scheduleThe Garden State now has some of the highest gas taxes in the country thanks to a 23 cent per gallon hike that went into effect Tuesday. (Published Tuesday, Nov. 1, 2016)

What to KnowStarting Tuesday, the gas tax rises from 14.5 cents per gallon to 37.5 centsThe increase vaults New Jersey from second lowest gas taxes in nation (after Alaska) to sixth highestIndustry representatives say it’s still cheaper to fill up in NJ than in neighboring states

The days of cheap gas in New Jersey came to an end Tuesday when a 23 cents per gallon increase in the state’s gas tax took effect.

New Jersey previously had the nation’s second lowest gas tax, behind only Alaska. But the boost has catapulted it to the sixth highest.

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The increase came about after the state ran out of money to pay for transportation projects. The boost from 14.5 cents per cheap jerseys gallon to 37.5 cents marks the first time the gas tax has been raised since 1988.

The tax boost is part of a deal between Republican Gov. Chris Christie and the state’s Democratic led Legislature that includes an 8 year, $16 billion transportation trust fund and cuts to the estate and sales taxes. The deal passed with bipartisan support, but also faced strong opposition from lawmakers on both sides of the aisle. Two Republican state senators Kip Bateman and Mike Doherty have recently introduced a measure seeking to repeal the increase, saying people were shocked to learn that the 23 cent a gallon increase could rise in the future if revenue targets are not met.

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Industry officials and drivers alike think there are still enough incentives for out of staters to travel to New Jersey, though they admit it’s not clear how much of an impact the higher tax rate will have in the coming months and years.

Also affected are people who use the ride hailing company Uber. It announced Monday that it will raise fares by 2 cents per mile to help drivers pay for gas.