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New Jersey governor takes fuel tax hike off the table

Truckers running in New Jersey will not pay more tax on their fuel for now, according to media reports, after Gov. James McGreevey said he would not support an increase in the state’s fuel tax.

A transportation commission appointed by Gov. James McGreevey recommended Nov. 24 that New Jersey hike its fuel tax by at least 12.5 cents per gallon to fund repairs and improvements to the state’s roads. The Blue Ribbon Commission also recommended raising the tax regularly to reflect inflation, The Newark Star-Ledger reported.

McGreevey convened the panel 10 months ago to study how to permanently finance the state Transportation Trust Fund and to make recommendations to the Legislature. The existing $3.75 billion fund for roadwork expires in June, putting the state in a time crunch to find more money, the newspaper reported.

The diesel fuel tax now is 17.5 cents a gallon. The gas tax is 14.5 cents.

The proposal lacked support from Republicans in the state’s General Assembly, The New York Times said. In addition, the proposal spurred opposition in the trucking industry, since part of the plan was to use some tax money to end tolls on the Garden State Parkway – essentially transferring money from trucks to pay for a road where trucks are not allowed.

McGreevey cited the potential economic impact of the increase during a speech in which he announced he would oppose it.

However, some kind of plan to increase revenue for highway programs in the state is likely. The Star-Ledger, citing transportation experts, reported that by 2005, the state’s highway trust fund would spend all of its income on paying off debt.

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