New Jersey’s gas tax won’t be going up this year.
The law that raised the tax by 23 cents a gallon in November requires the state to determine annually whether the tax rate is generating enough money for transportation projects.
And the state treasurer has decided the tax rate won’t need adjustment this year.
Sal Risalvato, executive director of the New Jersey Gasoline, Convenience Store and Automotive Association, is concerned about future changes.
“If there is not enough revenue that is taken in, the tax can be adjusted upwards,” he said Tuesday. “However, in subsequent years, if the amount of revenue that is taken in is more than projected, it can be lowered with a floor of the 23 cents that was added last year.”
Last year’s increase was the first time the state raised the gas tax since 1988. It’s projected to generate about $1.2 billion annually for the transportation system maintenance, repairs and upgrades.