Christie, top lawmakers reach deal on raising N.J. gas tax for transit funding

Gas taxes in New Jersey would go up 23 cents per gallon under a deal reached between Republican Gov. Chris Christie and Democratic leaders.

Christie announced the eight-year deal that would also eliminate the estate tax and cut the sales tax Friday afternoon. He held a statehouse news conference with Senate President Steve Sweeney and Assembly Speaker Vincent Prieto.

The deal to raise $2 billion a year still needs approval in both houses of the Legislature.

The estate tax would be phased out over the next year and a half, and the sales tax would be cut by 3/8th of a percentage point. The deal also includes tax credits for veterans and the working poor.

It would be the first gas tax hike since 1988.

Christie had ordered a shutdown of most transit projects earlier this summer.