What a Gas ‘Tax Holiday’ Would Mean for NJ
Updated: Aug 6, 2022
June 23, 2022 | njspotlightnews.org
With gas prices continuing to hover around $5 per gallon — in New Jersey and nationally — President Joe Biden is now calling for a three-month suspension of the federal gas tax.
New Jersey’s state gas tax currently adds 42.4 cents to the price of every gallon purchased at the pump in New Jersey. Taken together, the federal and state gas taxes add up to nearly 61 cents, or about 12%, for each $5 gallon of gas purchased in New Jersey.
NJ SEED: NJ has the nation’s fifth-highest state gas tax, currently at 42.4 cents a gallon in addition to the federal gas tax of 18.4 cents a gallon. Fuel tax revenues go to maintain the transportation infrastructure and the loss of these funds even temporarily would have an impact. A three-month suspension of the federal and state taxes would mean a savings of nearly 61 cents a gallon off the current price. Even if politically motivated, NJ motorists would welcome the relief.