The New Jersey state Senate isn’t expected to take any action Thursday on either of the proposed bills that would raise the state’s gasoline tax by 23 cents overnight.
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With the 23 cent increase, New Jersey would skyrocket from 49th lowest gas tax – at 14.5 cents – to ninth highest – 37.5 cents – vaulting ahead of Rhode Island, which has a 34 cent tax.
In exchange, the statewide sales tax rate would shrink by 1 percentage point to 6 percent, which could lead to an annual $1.7 billion shortfall in future budgets.
“We’re decreasing a tax that affects all New Jerseyans to justify increasing a tax that affects all New Jerseyans”, Ciattarelli said.
A new plan to renew the Transportation Trust Fund would raise the gas tax, cut the sales tax and increase the tax-free threshold for retiree payments.
The fund is the primary tool used by the state to finance highway, bridge and transit improvements, but is overburdened with debt and now unable to borrow more money to pay for new projects and ongoing work.
“It’s a joke. We mayors are not taking the governor seriously on this one”, said Brian Wahler, the Democratic mayor of Piscataway and former president of the New Jersey State League of Municipalities lobbying group.
New Jersey may be more famous for Bruce Springsteen than it is for its unusual gas station practices.
The spending plan did not address the state’s transportation trust fund, and Christie has ordered a plan to shutdown projects paid for by the account until a deal is reached.
Waiting on their desks is a deal backed by Christie, a Republican, that calls for raising the gas tax to 37.5 cents a gallon from 14.5 cents, cutting the sales tax to 6 percent over almost two years and cutting retirement income taxes.
Indeed, when told about the Senate Democrats’ remarks on Thursday, Christie spokesman Brian Murray referred Patch to the governor’s press conference remarks.
Without the legislation, the fund would run out of borrowing authority at the end of June.
The Assembly approved Christie’s plan early Tuesday after he and Speaker Vincent Prieto struck a compromise.
The DOT says that Christie’s order affects projects in all stages of development. “The Senate just doesn’t agree with the Assembly’s bill”. Chris Christie’s support, heads to the Democrat-led Senate, NBC 4 NY reported.
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Michael Darcy, the League’s executive director, said Christie’s order is “forcing county and municipal governments across the state to shut down operations on critical road and bridge projects that will jeopardize local businesses and economies and place the safety of residents at risk”. Add 23¢ to that, and you get 55.9¢, well above the national average (48.04¢) and cheaper only than six states (Pennsylvania, Washington, New York, Hawaii, California, and Connecticut). Assemblyman John Wisniewski, chairman of the Assembly Transportation Committee, said Christie is “trying to increase the level of pressure on legislators to vote for his ill-advised plan”.
