NJ Spotlight News
Higher gas tax, new EV fee are put on fast track
Clip: 3/7/2024 | 4m 12sVideo has Closed Captions
The charges are being sought to refuel NJ Transportation Trust Fund
New Jersey drivers would pay a higher gas tax, and owners of electric vehicles would pay user fees, to help recharge the state Transportation Trust Fund, or TTF, under a bill that won approval before the Assembly Transportation Committee Thursday. The TTF, which pays for highway, bridge and other transit projects, expires June 30.
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NJ Spotlight News is a local public television program presented by THIRTEEN PBS
NJ Spotlight News
Higher gas tax, new EV fee are put on fast track
Clip: 3/7/2024 | 4m 12sVideo has Closed Captions
New Jersey drivers would pay a higher gas tax, and owners of electric vehicles would pay user fees, to help recharge the state Transportation Trust Fund, or TTF, under a bill that won approval before the Assembly Transportation Committee Thursday. The TTF, which pays for highway, bridge and other transit projects, expires June 30.
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Learn Moreabout PBS online sponsorshipWell, Governor Murphy didn't mention it in his annual budget address, but the state is also looking at a looming June deadline to renew New Jersey's transportation trust fund, a massive pot of money that pays for roads, bridges and highways.
And this week, state leaders began pushing a new plan to raise money for the fund.
A controversial proposal that will raise a tax on drivers and those who own an electric car.
Senior correspondent Brenda Flanagan has the details.
Jersey drivers would pay a higher tax at the pub and EV owners would pony up user fees to help charge New Jersey's Transportation Trust Fund, or TGS.
With a couple billion dollars a year.
That's under a bill that won approval before the Assembly Transportation Committee today.
The plan that's being proposed is balanced.
It's affordable.
It's fair.
And it's very straightforward.
But the bill is also very controversial.
The TDF pays for highway, bridge and other transit projects.
It expires June 30th to reauthorize it and keep the money flowing.
The bill would increase Jersey's gas tax by an estimated $0.02 a year or about a dime a gallon after five years.
But it it also hit electric vehicle drivers with new registration fees, 250 bucks a year to start increasing over five years to $290.
We all support transportation investments.
It's how we get there.
And is there a plan behind this?
Some companies fret over paying more as do drivers.
New Jersey's Business and Industry Association staying neutral on the bill for now, especially given other fees and taxes proposed by Governor Murphy in his recent budget message.
New Jersey has an affordability problem as well as needing to focus and prioritize transportation.
So we need to figure out how this gas tax, the business tax, the truck tax, the fair and toll hikes all fit together.
The added benefit of this is it's a user fee.
Jersey Chamber of Commerce President Tom Bracken, who's also on the trustee board at New Jersey PBS, claimed the proposal would cost drivers on average an extra $0.13 a week.
There's a direct linkage between the people using the facilities and the fees being charged.
Supporters estimate the Recharge TBTF could create more than 21,000 jobs and pump billions into the local economy.
Meanwhile, towns and counties depend on duty of money to pay for road repairs and keep property taxes low.
The property tax issue that every dollar that that is received to local leaders, one last dollar that needs to be raised locally.
But the bill hits significant opposition along the road.
Environmental groups argue the $250 fee for EVs would stall sales and discourage folks from switching from gas to electric cars.
They suggested a $75 fee.
Instead, we have to continue investing in and subsidizing electric vehicles in the short term, not forever.
There needs to be an orderly transition.
Advocates complain that Governor Murphy is also pushing to remove the sales tax exemption on EV purchases, which car dealers predict could damage the governor's climate change deadlines.
Consumers will not react well to this and the shrinking of the incentives will render the goal the governor's goal of 100% EV sales in New Jersey literally unachievable.
An increase in the gas tax is unnecessary.
It's unwise, and thus for me, a nonstarter.
Republicans solidly oppose the measure, recommending no new taxes and a major audit of NJ Transit, which also receives ATF funding.
But the Democratic majorities behind that, and it's fast tracked.
We have to continue to invest so that we can continue to improve our roads, our infrastructure, our bridges, and just our local towns and municipalities that depend on this.
So very, so much.
The committee voted along party lines to release the bill, and I don't recall measure goes up before the Senate Transportation Committee for debate next week.
Supporters are hoping to get this passed by the legislature and on the governor's desk before the end of the month when state budget battles begin in earnest at the statehouse in Trenton.
I'm Brenda Flanagan, NJ.
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