Morris County to See Minor Gas Tax Hike Starting October


State Treasurer Announces 0.9 Cent Increase Per Gallon Effective October 1, Aiming to Maintain Funding for New Jersey’s Transportation Trust Fund.

Morris County residents can expect to pay a bit more at the pump beginning October 1. The New Jersey Department of the Treasury announced today that the state's gas tax rate will increase by 0.9 cents per gallon to sustain the State’s Transportation Trust Fund (TTF) program.

Who: The announcement was made by State Treasurer Elizabeth Maher Muoio after consultation with the Legislative Budget and Finance Officer.

What: A 0.9 cent increase in New Jersey’s gas tax rate. The Petroleum Products Gross Receipts (PPGR) tax rate will rise from 30.9 cents to 31.8 cents for gasoline and from 34.9 cents to 35.8 cents for diesel fuel.

When: The rate change will take effect on October 1, 2023.

Where: This will be a statewide change affecting all motorists in New Jersey, including those in Morris County.

Why: The increase is to ensure that the TTF program continues to receive adequate funding as mandated by the 2016 law enacted during the Christie Administration. The TTF program requires approximately $16 billion over eight years to support critical infrastructure improvements.

How: The law mandates an annual review and adjustment of the gas tax rate, with the aim of generating roughly $2 billion per year for the TTF program.

Treasurer Muoio stated,Because actual consumption in Fiscal Year 2023 was slightly below our projections made last August, primarily due to lower diesel use, our analysis of the formula dictates a 0.9 cent increase this coming October."

Historical Context and Further Details

Since 2018, the tax rates have seen a fluctuating trend:

  • Oct. 2018: +4.3 cents
  • Oct. 2019: No Change
  • Oct. 2020: +9.3 cents
  • Oct. 2021: -8.3 cents
  • Oct. 2022: -1.0 cent
  • Oct. 2023: +0.9 cents

The PPGR rate may be subject to future adjustments for two reasons:

  1. To correct for the prior fiscal year’s revenue shortfall or surplus in meeting the baseline Highway Fuels Revenue Target.
  2. To adjust based on whether projected highway fuel consumption in the current fiscal year is above or below baseline consumption levels.

As a result of the upcoming tax increase, the total tax rates that motorists in Morris County will pay for gasoline and diesel fuel will be 42.3 cents and 49.3 cents per gallon, respectively. This incremental adjustment aims to offset the shortfall in revenue collections for the state's vital transportation infrastructure needs. The only avenue for changing this statutory formula lies in legislative action, which must still secure reliable annual revenues for the expiring TTF authorization.

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