PHILADELPHIA (KYW Newsradio) — Good news for New Jersey drivers: The state Treasury Department says the gas tax rate will decrease by 8.3 cents per gallon starting in October.
This applies to both gasoline and diesel fuel.
The gas tax goes toward the state’s Transportation Trust Fund program, which finances improvements on New Jersey’s roads and bridges.
The state is raising $16 billion through 2024 to pay for necessary infrastructure projects. Per a 2016 state law, the gas tax rate must be adjusted accordingly to ensure funding for each year.
Last October, the tax actually rose by 9.3 cents, making New Jersey the state with the fourth-highest gas tax in the nation at the time.
Last fiscal year, the state Treasury Department estimated 2021 gasoline use would decline from pre-pandemic levels by about 16%, but it actually only decreased by about 14%.
Because the rate was in line with projections, the department did not need to increase the tax to make up for any shortfall this time around.