fbpx

State transportation chief Gas tax hike may be necessary

Brett Johnson//October 22, 2014

State transportation chief Gas tax hike may be necessary

Brett Johnson//October 22, 2014

New Jersey Transportation Commissioner Jamie Fox, in his first public appearance since confirmation, made it clear that a tax hike would remain on the table in discussions to address transportation funding.”Anyone who thinks we’re going to get this done without a tax is just mouthing words,” Fox told the state’s leaders during a conference Friday in Atlantic City, according to NJ Spotlight.

This statement regarded replenishing the Transportation Trust Fund, which the state uses to pay for road, bridge and rail projects and repairs.

Years of borrowing have driven the fund to where it is today: with bankruptcy looming next year.

The fund is financed mostly by the state’s motor fuels tax, plus the petroleum products gross-receipts tax, which together amounts to 14.5 cents per gallon. This is one of the lowest taxes in the nation, and it hasn’t been increased since 1988.

These taxes have ceased to be sufficient, and Fox’s message to business and labor leaders was partly urging them to fight for a more stable, long-term source of funding.

“Crisis is opportunity,” he was quoted as saying. “We are broke. We can let our infrastructure fall apart and become worse. Or we can put the ‘D’ and ‘R’ aside and pass a revenue enhancer, whatever that is.”

ALSO ON NJBIZ:

Harrison takes another step forward as high-end rental complex nears completion

Good news, bad news: Walmart changes create 380 retail jobs, Saks closing jeopardizes 100

State’s incentives overhaul lauded at NAIOP conference

<