Drivers will see signs start to change at 12:01 a.m. on Nov. 1. The Legislature gave the industry a couple weeks of lag time after the bill was signed to actually implement the tax increase, the first since 1988.
Initial Reporting from NJ.com: Suppliers will invoice retailers with the new, higher price — an extra $1,955 on an 8,500 gallon tank truck — and the retailers will then pass than on to the consumer at the pump.
Could the tax could rise higher?
Unlike many other states, New Jersey's new gas tax is pegged to consumption, not to the price of a gallon of gasoline. The tax rate will not rise or fall automatically as gas prices rise or fall.
Instead, the law puts a "cap" on how much money the state can raise from the tax. Each year, New Jersey can bring in no more than what 23 cents, or 12.85 percent per gallon, would have produced in the fiscal year that ended June 30.
If gas consumption is up and the state sells more gasoline, then the tax rate will go down. If consumption decreases, then the tax rate will rise to make up for the slowing revenue. And if revenue from the tax exceeds the cap one year, that money will roll over to the next year. The state treasurer will deduct that from what the state needs to collect the next year and adjust the tax rate each August accordingly.
Officials don't expect the tax rate to fluctuate much in the next few years.
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