Bill > S1734

Introduced Session

This bill provides for temporary reductions or suspensions of the State tax on highway fuels based on the average retail price of unleaded regular gasoline. The provisions of the bill would apply during the three-month period of June 2022 through August 2022. Under the bill, the State Treasurer, in consultation with the Office of the Economist in the Board of Public Utilities, would be required to determine, on a monthly basis, the average retail price per gallon of unleaded regular gasoline in the State during the current month. Based on these determinations, the rate of tax imposed on highway fuel would be set as follows: (1) no reduction in tax if the average retail price per gallon of unleaded regular gasoline was less than $4.50 during the preceding month; (2) a 50 percent tax reduction if the average retail price per gallon of unleaded regular gasoline was equal to or greater than $4.51 but not greater than $5.00 during the preceding month; (3) a 75 percent tax reduction if the average retail price per gallon of unleaded regular gasoline was equal to or greater than $5.01 but not greater than $5.50 during the preceding month; and (4) no tax would be imposed if the average retail price per gallon of unleaded regular gasoline exceeded $5.50 during the preceding month. The benefits of any reduction or suspension of taxation would be passed on to consumers in the form of reduced retail prices for highway fuels. Under current law, all revenues collected under the motor fuel tax and the petroleum products gross receipts tax are deposited into the Transportation Trust Fund to support the State's transportation system. Notably, these monies are used to pay the State's debt service on transportation bonds. Accordingly, the bill appropriates such amounts as are necessary from the revenues collected under the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.) to offset any reductions in motor fuel tax revenues and petroleum products gross receipts tax revenues that occur as a direct result of this bill. These monies would be deposited into the Transportation Trust Fund. The bill also requires these appropriations to be considered when the State Treasurer determines the annual rate of taxation for highway fuel under the petroleum products gross receipts tax.

AI Summary

Committee Categories

Paul Moriarty (D)*, 

Introduced in the Senate, Referred to Senate Transportation Committee (on 01/09/2024)

Official Document