TRENTON, NJ – Assembly Bill No. 4011, recently reported favorably by the Assembly Transportation and Independent Authorities Committee, introduces amendments to the “New Jersey Transportation Trust Fund Authority Act of 1984”. These amendments are designed to support the state’s Annual Transportation Capital Program for Fiscal Years 2025 through 2029. The bill includes adjustments to the Petroleum Products Gross Receipts Tax (PPGRT) rate and introduces an annual fee for zero-emission vehicles, with revenues allocated to the Transportation Trust Fund (TTF).
The bill proposes an extension and increase in the authority’s capacity to issue bonds for transportation programs, raising the cap from $12 billion to $15.6 billion through June 30, 2029. It authorizes $10.367 billion for capital program expenditures over five years, setting an average annual budget of $2 billion for transportation projects.
A notable change is the adjustment of the rate-setting procedure for the PPGRT, with a phased increase in the highway fuel cap from Fiscal Year 2025 through Fiscal Year 2029. This adjustment aims to meet specified revenue targets essential for funding transportation infrastructure projects. Additionally, the bill shifts the tax rate adjustment period from October 1 to January 1 of each fiscal year.
Another significant amendment is the abolishment of the three-member review council responsible for monitoring the PPGRT’s implementation. This move simplifies the tax’s oversight and implementation process.
The legislation also introduces a new fee for zero-emission vehicles, starting at $250 in 2024 and increasing annually to $290 by 2028. This fee is intended to contribute to the TTF, supporting transportation projects across the state. The bill defines zero-emission vehicles according to the California Air Resources Board standards, excluding vehicles that are produced as alternatives to meeting these standards.
Assembly Bill No. 4011 represents a comprehensive approach to funding New Jersey’s transportation infrastructure, emphasizing sustainability and fiscal responsibility.