NJ Gas Tax Could Go From 2nd Lowest To 7th Highest In Country
By Jan Carabeo
TRENTON, NJ (CBS) – The thought of paying more at the pump isn't sitting well with New Jersey drivers.
"It's really going to hurt people because they have to travel, get back and forth to work. It's not fair," says Kirk McNeil, of Camden.
But a 23-cent-per-gallon tax increase could soon become reality, taking New Jersey's gas tax from the second lowest in the country to the seventh highest.
On Wednesday, Governor Christie backed the State Assembly's plan and voiced confidence the Senate would pass the measure.
The move would set up a $2 billion per year Transportation Trust Fund over the next eight years.
Governor Christie says, "Fact is it will help improve mass transit in our state. It will help improve roads in our state and it will help to improve bridges in our state. That's all a good thing. That's what compromise is all about."
While the gas tax would increase, the state sales tax would decrease from 7 to 6 percent over the next 18 months.
The deal would also lower the income tax on retirees.
In all, Christie says the package would result in a net neutral tax on residents.
"I've never signed a tax increase in seven years as governor. I'm not particularly thrilled to have to sign this one, but I've said all along that if it represents tax fairness, I would sign."
Democratic State Senate Majority Leader Loretta Weinberg says leaders in her chamber are united against the measure, saying the deal is completely different from the Senate's version.
"This is the worst government being the worst kind of government, being done at a really inappropriate time."
"I'm opposed to any new taxes. I think they are going to call it a victory for bipartisanship in New Jersey legislature but it's just going to be a loss for the common man," says Mark Sulik.
The average driver would spend about $100 more per year because of the gas tax hike, according to the administration's math.
On the other hand, the average household would save about $400 in sales tax.
Governor Christie says if this passes, the gas tax hike portion of the deal would go into effect as early as tomorrow, just in time for the busy July 4 holiday.
