The New Jersey Assembly and Senate reached a deal last Friday to raise the gasoline tax 23 cents a gallon. On Wednesday, October 5, 2016, both legislative houses are expected to pass the bill.
Here is what the bill is expected to fund:
- Eight-year, $16 billion transportation program
- Elimination of the estate tax if valued over $675,000
- Sales tax will decrease slightly
- From 7% to 6.874% January 2017
- To 6.625 January 2018
- Earned Income Tax Credit will increase by 5%
- Tax break on retirement income
- Tax exemption for veterans
Once the tax is implemented, New Jersey will pay the 7th highest amount in taxes on gasoline.