Reduces taxes on petroleum products gross receipts to 2016 levels; eliminates review council and State Treasurer�s authority to change tax rate.

Reduces the petroleum products gross receipts tax to four cents per gallon, which was the effective tax rate in 2016 prior to the tax�s most recent legislative revision. In 2016, the State increased three components of the petroleum products gross receipts tax (PPGRT):
(1) the tax on motor fuels was increased by 12.85 %;
(2) the tax on non-motor fuels was increased from 2.75% to 7%; and
(3) the tax on diesel fuels was increased four cents per gallon.
The largest part of this increase was that tax on motor fuels, which effectively amounted to an increase in 23 cents per gallon. Because the law included a provision that allows the State Treasurer to modify the tax rate based on fuel consumption and revenue collections, the total tax on motor fuels under the PPGRT currently sits at 31.9 cents per gallon. This bill would eliminate all three components of the 2016 tax increase and any subsequent PPGRT increases that have been imposed by the State Treasurer, reverting the PPGRT back to four cents per gallon and thereby reducing the cost of gasoline for consumers.

Also eliminates the power of the State Treasurer to modify the tax based on fuel consumption and eliminates a review council connected to the 2016 legislative revision. Any future changes to the tax would be required to be enacted by the Legislature and approved by the Governor.

Provides that the State Treasurer, in consultation with the New Jersey Transportation Trust Fund Authority, is to ensure that the rights of bondholders are not negatively impacted by the provisions of the bill.

Dead.

10/03/2022 Introduced. Referred to Assembly Committee on Transportation and Independent Authorities.
01/08/2024 Died upon adjournment.