Learning From New Jersey’s Gas Tax Disaster

gastaxes

New Jersey has the second-lowest gas tax in the country. Residents of the state enjoy their cheap gas and neighboring New Yorkers and Pennsylvanians routinely jump across the border to take advantage of a cheap fill-up.

The average price per gallon in the state is about $2.10, with some locations showing prices between $1.80 and $1.90.

While that’s great news for commuters and road-trippers, it’s not so great for the state’s government. A low gas tax means less money for the state coffers, which has effectively bankrupted the state’s transportation department.

In fact, road construction projects state-wide were halted last week due to a lack of funds (and a hefty dose of political maneuvering). Drivers may enjoy cheap gas, but they’ve been left to navigate New Jersey’s deteriorating and unfinished roads until a solution is found.

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