TRENTON – If you need gas for your car but want to save a dollar or two, wait until Friday – when New Jersey gasoline tax drops 8.3 cents a gallon.
State officials adjust the gas tax on October 1 each year under a 2016 law that sets an annual revenue target of around $ 2 billion. Depending on the surveys last year and expectations for the coming year, the tax can rise, stay the same, or fall.
This is the first cut since the law came into force. State Treasury officials attributed the faster-than-expected recovery from the pandemic to reversing most of the 9.3 cents-per-gallon increase imposed a year ago.
One reason for the annual tax rate adjustments was to keep the increases small and predictable. But the tax has been at a yo-yo level since the first increase of 22.6 cents in 2016 – 2017, increased in 2018, increased in 2019, 2020, now falling.
The state’s gas tax as of October 1 is 42.4 cents per gallon, down from 50.7 cents. The tax on diesel fuel is 7 cents higher per gallon, or 49.4 cents.
New Jersey is said to be moving from the fourth highest gas tax in the country to the eleventh highest Tax foundation data.
The gas tax will be reduced by around 16%. According to the AAA, the average New Jersey gas price for a gallon of regular unleaded gasoline is currently about $ 3.23, so the tax change could mean an overall reduction per gallon of about 2.5%.
Michael Symons is the State House office manager for New Jersey 101.5. Contact him at [email protected].
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