Assemblyman Clinton Calabrese has introduced A-4011, which reauthorizes the New Jersey Transportation Trust Fund Authority and makes several revisions, including an increase in the gas tax rate and the establishment of a fee for zero-emission vehicles. The recently introduced bill is scheduled for a hearing before the Assembly Transportation Committee on Thursday, March 7. Late this afternoon, it was reported that Senate President Nicholas Scutari and Senate Budget Committee Chair Paul Sarlo will sponsor the TTF proposal in the Senate.
A-4011 would reauthorize the Transportation Trust Fund (NJTTF), create a new procedure for determining the Petroleum Products Gross Receipt Tax Rate (PPGRT), eliminate the PPGRT Review Council, and create a fee for zero-emission vehicles.
The bill reauthorizes The New Jersey Transportation Trust Fund Authority (TTFA) to issue transportation program bonds, increasing its aggregate bonding capacity to $15.6 billion (about $48 per person in the US) from $12 billion and extending the authorization until June 30, 2029. Without legislation, the NJTTF would expire on June 30, 2024.
A-4011 also allocates $10.3 billion for capital program expenditures over five years, from Fiscal Year 2025 to Fiscal Year 2029, with an average annual capital program size of $2 billion, while requiring excess appropriations above $2 billion in Fiscal Years 2027, 2028, and 2029 to be allocated to municipal, county, NJ Transit and DOT transportation projects. Additionally, the bill modifies the method of calculating the TTFA’s bonding capacity by including net premiums received by the TTFA in this calculation, allowing for a more accurate assessment of its bonding capacity.
Under current law, the rate of tax imposed under the PPGRT is adjusted annually by the State Treasurer to meet a predetermined revenue target known as the “highway fuel cap,” based on 2016 collections of highway fuel taxes. This annual adjustment mechanism is set to expire at the end of State Fiscal Year 2026. All revenues are directed into the Transportation Trust Fund (TTF) to finance infrastructure projects and pay bond debt service.
The proposed changes extend this procedure beginning in Fiscal Year 2025 to gradually raise the highway fuel cap amount through Fiscal Year 2029. The bill mandates a revenue target to be as follows:
Fiscal Year 2025: $2 billion
Fiscal Year 2026: $2.1 billion
Fiscal Year 2027: $2.19 billion
Fiscal Year 2028: $2.2 billion
Fiscal Year 2029: $2.3 billion
The bill shifts the effective date of the new tax rate to January 1 of each fiscal year during this period, departing from the current implementation date of October 1.
The bill introduces a fee for zero-emission vehicles registered in New Jersey. The fee will be collected by the Chief Administrator of the Motor Vehicle Commission. Beginning July 1, 2024, the fee would be set at $250 and increased by $10 on July 1 of each year until 2028, reaching $290 thereafter. Revenue generated from these additional fees would be directed to the “Transportation Trust Fund Account - Subaccount for Capital Reserves” to support transportation projects. However, these funds cannot be used for debt service on transportation system bonds or any other obligations until constitutionally dedicated to the Transportation Trust Fund.
Contacts: Andrew LaFevre, Legislative Analyst, alafevre@njlm.org, 609-695-3481, x116. Mike Cerra, Executive Director, mcerra@njlm.org, 609-695-3481, x120.