New Jersey legislature sends gas tax hike to governor's desk
- Wall St stumbles as FBI to review more Clinton emails
- FBI to review more emails related to Clinton's private email use
- Unusual 11 Mid-Day Movers 10/28: (GRVY) (VRTS) (ITGR) Higher; (OPXA) (SNMX) (STON) Lower
- ExxonMobil (XOM) Tops Q3 EPS by 5c; CapEx Light of Views
- Baker Hughes (BHI), General Electric (GE) in Partnership Talks, Not Merger Talks
News and research before you hear about it on CNBC and others. Claim your 2-week free trial to StreetInsider Premium here.
By Hilary Russ
NEW YORK (Reuters) - New Jersey's Democrat-led legislature passed a 23-cent gasoline tax hike on Friday to re-start the state's stalled transportation projects, sending the measure to Republican Governor Chris Christie for his expected signature.
The legislative package would increase the state's gas tax, which has not risen since 1988, to 37.5 cents per gallon. Christie and lawmakers struck a $16 billion deal on Sept. 30 to fund road, bridge and transit projects for eight years.
In exchange for the higher gas tax, the bills reduce the sales tax rate in phases and eliminate the estate tax, which now applies to estates valued over $675,000. The total tax cuts will ultimately cost the state $1.4 billion of revenue annually once fully implemented.
The hard-fought deal comes after months of talks and previous agreements that ultimately fell flat. In early July, Christie halted all but the most essential projects paid for with the state's Transportation Trust Fund, including $2.7 billion of NJ Transit projects.
The New Jersey Business & Industry Association, a trade group representing businesses in the state, hailed the deal as a step toward slowing the outmigration of companies and residents from New Jersey.
But the head of New Jersey Policy Perspective, a think-tank focused on the state's economy which on its website says it "has played an essential role in advancing progressive state policies," was harshly critical.
Gordon MacInnes, president of the think-tank, called the plan "absolutely toxic to New Jersey's future." While the gas tax increase was long overdue, he said in a statement, the companion tax cuts will lead to higher college costs, less property tax relief and higher transit fares for future generations.
(Reporting by Hilary Russ; Editing by Leslie Adler)
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Deutsche settlement over Russia trades possible in 2017: sources
- T.Rowe asks Oracle to raise offer to buy NetSuite
- Turkey expects first F-35 delivery in 2018, plans more orders