Revises the rate of tax on highway fuels under the Petroleum Products Gross Receipts Tax and establishes an annual fee for zero emission vehicles.

Under current law, the rate of tax imposed under the Petroleum Products Gross Receipts Tax (PPGRT) is annually adjusted by the State Treasurer to ensure that the State realizes a statutorily prescribed revenue target, more commonly referred to as the �highway fuel cap,� based on 2016 collections of highway fuel taxes. The cap amount is based on the Fiscal Year 2016 sum of: (1) the taxes collected in Fiscal Year 2016 under the Motor Fuels Tax, (2) the amount derived from taxing the gallonage of highway fuel subject to the four cent motor fuel tax, and (3) the amount that would have been derived from taxing the gallonage of highway fuel subject to the motor fuel tax at a rate of 23 cents per gallon. All revenues collected are deposited into the TTF to support transportation infrastructure projects and debt service on transportation bonds. This annual adjustment mechanism is currently set to expire at the conclusion of State Fiscal Year 2026. The bill would modify this mechanism, beginning with Fiscal Year 2025, to gradually raise the highway fuel cap amount through Fiscal Year 2029. The amount of revenue required to be collected on highway fuel would be as follows: $2,032,000,000 in Fiscal Year 2025; $2,115,000,000 in Fiscal Year 2026; $2,199,000,000 in Fiscal Year 2027; $2,282,000,000 in Fiscal year 2028; and $2,366,000,000 in Fiscal Year 2029. If the actual revenues generated fall above or below the highway fuel cap amount set for the fiscal year, the rate of tax would be adjusted accordingly to ensure the highway fuel cap amount is realized. Provides that after the State Treasurer has determined the rate of tax pursuant to the bill, the new rate would take effect on January 1 of Fiscal Year 2025 through Fiscal Year 2029 rather than October 1, as is done under current law.

Institutes an additional fee for zero emission vehicles
registered in the State. The fee would be collected by the Chief
Administrator of the New Jersey Motor Vehicle Commission at the same time the vehicle is initially registered or renewed, as the case may be. Beginning on July 1, 2024, the amount of the fee would be $250 and increase by $10 on July 1 of each year until 2028. After that time, the amount of the fee would be set at $290.

Effective 1/1/25.

03/04/2024 Introduced. Referred to Assembly Committee on Transportation and Independent Authorities
03/07/2024 Reported favorably by Assembly Committee on Transportation and Independent Authorities, and Referred to Assembly Committee on Appropriations.
03/14/2024 Reported out of Assembly Committee on Appropriations. To second reading.
03/18/2024 Passed Assembly.
03/18/2024 Received in the Senate without Reference. Second reading.
03/18/2024 Substituted for SB 2931. Passed Senate.
03/26/2024 Approved by Governor.