Sen. Lesniak Proposes His Own Gas Tax Solution

On Jul 15, 2016

In the midst of competing Transportation Trust Fund (TTF) solutions and ongoing compromise talks between the governor and legislative leaders, State Senator Raymond Lesniak (D-20) introduced his own gas tax plan yesterday that calls for a 25-cent-per-gallon increase over a three-year period. The gas tax would increase by 10 cents in the first year, 10 cents in the second year and five cents in the final year.

“The TTF is all but broke, putting the state at risk of leaving its infrastructure prone to neglect and disrepair,” Lesniak said. “Our transportation network is critical to the state’s economy as well as our quality of life. There is near universal agreement that a funding source is needed and a three-year phase in of the gas tax increase would cause less ‘sticker shock’ at the pump for motorists.”

Senate President Stephen Sweeney supports a plan that would raise the gas tax by 23 cents per gallon and eliminate the estate tax, create a deduction for charitable contributions, raise a tax credit for the working poor and free a portion of retirement income from taxes. The plan would cost the state $962 million to $1.16 billion per year by 2022.

An alternative plan, worked on by Governor Chris Christie and Assembly Speaker Vincent Prieto, also calls for a 23-cent gas increase, would raise the retirement income tax exemption and reduce the 7 percent sales tax to 6 percent over two years. This would cost the state nearly $1.88 billion to $1.94 billion per year by 2022.

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