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State Treasurer Announces Minor Increase Beginning Oct. 1 to Fund New Jersey's Transportation Trust Fund Amid Fluctuating Trends.
10-02-2023 12:43pm
Morris County Drivers Brace for 0.9 Cent Gas Tax Hike Effective Oct. 1
Morris County motorists will see a slight uptick at the gas pump starting today, October 1, 2023, as the New Jersey Department of the Treasury announces a 0.9 cent per gallon increase in the state's gas tax.
Who and What:
The announcement was made by State Treasurer Elizabeth Maher Muoio, in consultation with the Legislative Budget and Finance Officer. 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 and Where:
The increase takes effect today and is a statewide change affecting all motorists in New Jersey, including those in Morris County.
Why:
The increase is aimed at maintaining adequate funding for the State’s Transportation Trust Fund (TTF) program. Authorized by a 2016 law during the Christie Administration, the TTF program requires about $16 billion over eight years for critical infrastructure improvements. 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."
How:
The law mandates an annual review and adjustment of the gas tax rate to generate roughly $2 billion per year for the TTF program.
Historical Context:
- 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
Further Implications:
This minor adjustment will result in total tax rates for Morris County motorists at 42.3 cents per gallon for gasoline and 49.3 cents per gallon for diesel fuel. Adjustments are made based on the prior fiscal year's revenue and current year projections, and any change to this statutory formula would require legislative action.
Morris County residents are urged to stay informed about future adjustments, as these tax rates could fluctuate further. With road construction already affecting local commutes, this incremental tax increase underscores the need for residents to consider transportation costs in their budgeting.
