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Is your state next to raise its gas tax?

Is your state next to raise its gas tax?

CBS News
By Jonathan Berr
October 12, 2016, 5:30 AM

New Jersey is poised to become the 19th state since 2013 to raised or reform its gasoline tax if, as expected, Republican Governor Chris Christie approves the just-approved 23-cent hike. More than a dozen states have considered similar moves over the past few months as they scramble to fix their crumbling transportation infrastructure.

Raising the gas tax has been a hot-button issue in New Jersey as it has been in other states. To gain Christie’s approval, the Democrats. who control the legislature, paired it with a decrease in the sales tax and a phase-out of the estate tax. Even with the gas tax hike, New Jersey gas will still be cheaper than fuel in neighboring New York and Pennsylvania.

As in the Garden State, local transportation officials are being squeezed by a combination of trends that has seen revenue from gas taxes plummet in recent years, leaving their transportation networks in disarray. First, cars are using less gasoline now, thanks to improved fuel efficiency standards. Fuel sales have also been hurt by the growing numbers of electric, hybrid and other alternative fuel vehicles.

Furthermore, most states don’t index their gas tax to inflation, and as a result, their funding for roads, bridges and public transit hasn’t kept up with rising costs for labor among other things. Efforts to raise the federal gas tax have also gone nowhere in recent years... FULL ARTICLE

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