Eliminates automatic increases of petroleum products taxes.

Eliminates the automatic increases of the petroleum products gross receipts tax.

Currently, and through the year 2026, the rate of tax imposed on petroleum products is adjusted annually by the State Treasurer, in consultation with the Legislative Budget and Finance Officer, to meet the �highway fuel cap amount.� The highway fuel cap amount is roughly $2 billion, and based on the amount equivalent to 2016 fuel sales as if taxed at certain rates. If the amount of revenue in a year exceeds the cap amount, the following year�s tax rate is decreased. Conversely, if revenue in a year is less than the cap amount, the tax rate is increased the following year to meet the shortfall. Under this bill, the authority to increase the adjustable part of the tax rate is eliminated, but the authority to decrease the rate remains intact.

Also makes amendments to avoid triggering the complete
18 cessation of certain fuel tax collections. This is necessary because P.L.2016, c.57, the act that created the automatic adjustments, contains a provision that requires the cessation of collections if the implementation of any section of that act were reversed or stopped by Legislative action. Included in that act are sections related to income, estate, and sales taxes. The provision is therefore amended to apply only to sections not affecting the petroleum products gross receipts tax.

Pending Committee action.

01/09/2024 Introduced. Referred to Assembly Committee on Transportation and Independent Authorities.