summary
Introduced
01/13/2026
01/13/2026
In Committee
01/13/2026
01/13/2026
Crossed Over
Passed
Dead
Introduced Session
2026-2027 Regular Session
Bill Summary
This bill 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. The bill also makes amendments to avoid triggering the complete 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.
AI Summary
This bill eliminates the automatic annual increases to the petroleum products gross receipts tax, which were designed to ensure tax revenue from highway fuels met a specific target amount, known as the "highway fuel cap amount" (approximately $2 billion). Previously, if tax revenue fell short of this cap, the tax rate would increase the following year, and if it exceeded the cap, the rate would decrease. This bill removes the provision that allows for the tax rate to be increased to meet the cap, but retains the ability to decrease the rate if revenue is too high. Additionally, the bill amends a provision that could have led to the complete cessation of certain fuel tax collections if any part of the original law (P.L.2016, c.57) that introduced these automatic adjustments were reversed by legislative action; this amendment ensures that this cessation provision only applies to sections of that law that do not affect the petroleum products gross receipts tax.
Committee Categories
Transportation and Infrastructure
Sponsors (1)
Last Action
Introduced, Referred to Assembly Transportation and Independent Authorities Committee (on 01/13/2026)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2026/A3209 |
| BillText | https://pub.njleg.gov/Bills/2026/A3500/3209_I1.HTM |
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