GOV. MURPHY SIGNS GAS TAX HIKE, ELECTRIC VEHICLE FEE INTO LAW

Governor Phil Murphy signed a reauthorization of New Jersey's transportation trust fund, increasing the state's gas tax and implementing a new registration fee for electric vehicles.

The bill, passed with near party-line votes, aims to raise revenue targets for gas taxes by roughly 18% over five years. The legislation doesn't directly change gas tax rates but adjusts them annually based on revenue targets. Advocates and business groups support the measure as crucial for the state's economy. 

The bill also introduces an annual registration fee for electric vehicles, starting at $250 and gradually increasing to $290 by 2028. Critics argue that these fees could hinder the adoption of zero-emission vehicles.

Additionally, the law permits the transportation trust fund to borrow an additional $3.6 billion for transportation projects and raises annual spending caps from $1.6 billion to $2 billion.