States raise gas taxes ahead of July 4th holiday
Washington and Maryland will boost their gas taxes Friday — and New Jersey is about to approve a big hike this week — as travel-industry experts project the lowest gas prices in a decade and record travelers on the road for the Independence Day holiday.
The New Jersey Assembly approved a 23-cent per gallon hike Tuesday. The state Senate will consider the proposal this week. Gov. Chris Christie said he hopes to sign the legislation, which also would reduce the state sales tax from 7% to 6%, by Thursday.
The gas tax, which had been among the country’s lowest, would reach 37.5 cents per gallon. Christie said the legislative package would provide the first statewide tax reduction since 1994, while still boosting dedicated funding for roads, bridges and transit systems.
“It seems like a fairly powerful combination to me,” he said.
Washington and Maryland already have gas hikes certain for the holiday. The increases come as AAA projects the average price of $2.31 per gallon for the holiday weekend, the lowest since 2005.
Washington state will raise the rate 4.9 cents per gallon, the second part of an increase from last year to yield an overall rate of 49.4 cents per gallon.
Maryland’s rate is rising 0.9 cents, to 30.3 cents per gallon. The rate has been rising under a 2013 formula that accounts for inflation.
Three states will cut their rates. California’s rate drops 2.2 cents to leave a rate of 27.8 cents per gallon.
Nebraska will reduce its rate 1 cent, to 25.8 cents per gallon. The cut followed an increase Jan. 1 of 0.7 cents per gallon.
North Carolina also will cut its rate 1 cent, to 35 cents per gallon.
The federal gas tax of 18.4 cents per gallon has remained the same since 1993.
Advocates of greater highway and bridge construction have urged an increase in the federal tax, but Congress has refused to raise the rate, and instead channeled funding in December for the latest highway bill from other streams such as Federal Reserve funds and petroleum reserves.