Drivers in New Jersey are feeling the pain at the gas station once again after the state has decided to increase the gas tax. Starting from this month, consumers will be paying an extra 2. 7 cents for each gallon making the total state tax to 41. 4 cents for a gallon of gasoline and 48. 4 cents for a gallon of diesel. For most people, it’s just one more expense that they have to deal with in a state that is already expensive to live in.
This adjustment is based on a law signed in 2016 by the then-Governor of New Jersey, Chris Christie, to boost the Transportation Trust Fund of the state. The law has provided for review of the fund annually to ensure that the fund is adequate to meet the anticipated funding targets that have been set. If the revenue collection is less than what was projected in the law then the law requires that the tax be increased to cover the difference.
This fiscal year, officials noted that the drop in fuel use was the main factor. “There are fewer cars on the road due to people driving less and the advent of more fuel efficient automobiles thus reducing the revenue collected from the sale of gas,” a state official said. The COVID-19 pandemic also contributed to this shift which saw people working from home and relocating to new cities with lower rates of commuting leading to reduced demand for fuels at the filling stations.
For the average driver it means that he or she will spend an additional $32 a year if they refill their car once a week. To some it may not seem like a lot but for families already struggling with property taxes, food prices and other needs every dollar counts.
Critics of the tax increase state that the current system is prejudiced against the low income population who mainly use their personal vehicles to get around. “We are talking about people who are struggling to meet their basic needs, and now they are being expected to pay for a faulty tax system”, one advocacy group leader.
However, the state officials have continued to insist that the increase is vital to the preservation of the roads and bridges. “Without this funding some of the most vital infrastructure projects would be unable to proceed,” stated Diane Gutierrez-Scaccetti who is the commissioner of the New Jersey Department of Transportation. “This is not only about repairing the holes on the road, it is about the preservation of New Jersey. ”
Not everyone is convinced though. New Jersey already has some of the highest taxes in the United States and the opponents have stated that there must be some changes in the state’s tax system. “We have to look for other sources of income” one state legislator remarked, also stating that electric vehicles which are not subject to gas taxes should also be taxed.
In the meantime, New Jersey drivers keep on driving and feeling the pain of the higher costs. People working at gas stations all across the state gave various reactions to the new development. “I’m angry, but what can you do? ” one driver from Edison stated. Another person from Cherry Hill joked, “If they are going to take more of my money, at least they should at least fix these roads. ”
As the state further plans on implementing the plans, New Jersey residents are left with this question; How high can it go? With the trends of fuel consumption reversal not being seen, this may not be the last hike that drivers will see.
As the discussion on tax justice and infrastructural funding rolls on; what cannot be debated is the fact that it costs to keep New Jersey roads in good shape, it costs a lot of money but it also costs something far harder to quantify – the ability to manage the policies, the political processes and the personal circumstances of the state’s residents.
