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Appropriation Revenues
Actual Legislative appropriations of constitutionally and statutorily dedicated revenues since FY 85 are shown below:
| |
Constitutionally
Dedicated Revenues
($Million) |
Statutory Earmarked
Funds
($Million) |
Total |
|
|
|
|
|
|
|
|
Good Driver Surch. |
|
|
Grand
Total |
1985 |
88.0 |
|
|
88.0 |
0.0 |
20.0 |
24.5 |
|
66.0 |
110.5 |
198.5 |
1986 |
88.0 |
|
|
88.0 |
0.0 |
30.0 |
24.5 |
|
5.5 |
60.0 |
148.0 |
1987 |
88.0 |
|
|
88.0 |
0.0 |
30.0 |
24.5 |
|
0.5 |
55.0 |
143.0 |
1988 |
88.0 |
|
|
88.0 |
0.0 |
30.0 |
24.5 |
|
58.5 |
113.0 |
201.0 |
1989 |
88.0 |
|
|
88.0 |
188.5 |
30.0 |
24.5 |
|
0.0 |
243.0 |
331.0 |
1990 |
88.0 |
|
|
88.0 |
188.5 |
30.0 |
24.5 |
|
0.0 |
243.0 |
331.0 |
1991 |
88.0 |
|
|
88.0 |
188.5 |
30.0 |
24.5 |
|
0.0 |
243.0 |
331.0 |
1992 |
88.0 |
|
|
88.0 |
188.5 |
30.0 |
24.5 |
|
0.0 |
243.0 |
331.0 |
1993 |
88.0 |
|
|
88.0 |
|
|
24.5 |
|
42.5 |
67.0 |
155.0 |
1994 |
88.0 |
|
|
88.0 |
|
|
24.5 |
|
47.9 |
72.4 |
160.4 |
1995 |
88.0 |
|
|
88.0 |
|
|
24.5 |
|
100.9 |
125.4 |
213.4 |
1996 |
88.0 |
|
|
88.0 |
|
|
24.5 |
|
84.1 |
108.6 |
196.6 |
1997 |
280.0 |
|
|
280.0 |
|
|
24.5 |
|
0.0 |
24.5 |
304.5 |
1998 |
280.0 |
|
|
280.0 |
|
30.0 |
24.5 |
45.8 |
0.0 |
100.3 |
380.3 |
1999 |
320.0 |
|
|
320.0 |
|
30.0 |
24.5 |
80.0 |
9.2 |
143.7 |
463.7 |
2000 |
360.0 |
|
|
360.0 |
|
30.0 |
24.5 |
60.0 |
8.6 |
123.1 |
483.1 |
2001 |
405.0 |
100.0 |
|
505.0 |
|
30.0 |
24.5 |
60.0 |
81.9 |
196.4 |
701.4 |
2002 |
405.0 |
200.0 |
80.0 |
685.0 |
|
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
685.0 |
2003 |
405.0 |
200.0 |
140.0 |
745.0 |
|
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
745.0 |
2004 |
405.0 |
200.0 |
200.0 |
805.0 |
|
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
805.0 |
2005 |
405.0 |
200.0 |
200.0 |
805.0 |
|
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
805.0 |
2006 |
405.0 |
200.0 |
200.0 |
805.0 |
|
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
805.0 |
| 2007 |
483.0 |
200.0 |
200.0 |
883.0 |
|
0.0 |
12.0 |
0.0 |
0.0 |
12.0 |
895.0 |
2008 |
483.0 |
200.0 |
200.0 |
883.0 |
|
0.0 |
12.0 |
0.0 |
0.0 |
12.0 |
895.0 |
Note 1: Appropriation was set to cover debt service only and did not correspond with specific earmarked revenues. Amounts are shown here in General Fund Other Category.
Source: Transportation Trust Fund Authority |
Motor Fuel Taxes
Currently, New Jersey imposes a 10.5 cents per gallon tax on the sale of gasoline and a 13.5 cents per gallon tax on diesel fuel.
Although the tax is passed directly to the consumer at the retail level, it is actually collected by the Division of Taxation at
the wholesale level from distributors. New Jersey's motor fuel tax rate has consistently ranked in the range of 45th-48th lowest
in the country. The tax was last raised in 1988 by 2.5 cents when it was only 8 cents per gallon for gasoline and 11 cents for diesel.
The motor fuels tax currently raises approximately $553 million annually. The State Constitution dedicates the revenue equivalent of 10.5 cents per gallon from both the gasoline and diesel taxes for transportation capital purpose($528M). The remaining
3 cents of the diesel tax ($25M) is not constitutionally dedicated for transportation purposes but was included as one element of the "heavy truck fees" that are statutorily earmarked for transportation. Of the $528 Million, the Legislature is appropriating the Trust Fund Authority $483
million. The remaining $45 million is being appropriated to NJ TRANSIT's operating budget
for "repair and rehabilitation" purposes that are consistent with the constitutional language.
Historical tax rates and revenues from the Motor Fuel Tax are summarized below:
Fiscal Year |
Gas Tax (Cents) |
Diesel Tax (Cents) |
Statutory Dedication |
Constitutional Dedication |
Revenues Collected ($Millions) |
| 1927 |
2.0 |
2.0 |
NA |
NA |
NA |
| 1930 |
3.0 |
3.0 |
NA |
NA |
NA |
| 1954 |
4.0 |
4.0 |
NA |
NA |
NA |
| 1958 |
5.0 |
5.0 |
NA |
NA |
NA |
| 1961 |
6.0 |
6.0 |
NA |
NA |
NA |
| 1968 |
7.0 |
7.0 |
NA |
NA |
NA |
| 1972 |
8.0 |
8.0 |
NA |
NA |
NA |
| 1985 |
8.0 |
11.0 |
2.5 |
2.5 |
296.2 |
| 1986 |
8.0 |
11.0 |
2.5 |
2.5 |
318.2 |
| 1987 |
8.0 |
11.0 |
2.5 |
2.5 |
321.1 |
| 1988 |
8.0 |
11.0 |
2.5 |
2.5 |
327.0 |
| 1989 |
10.5 |
13.5 |
7.0 |
2.5 |
416.7 |
| 1990 |
10.5 |
13.5 |
7.0 |
2.5 |
404.9 |
| 1991 |
10.5 |
13.5 |
7.0 |
2.5 |
390.8 |
| 1992 |
10.5 |
13.5 |
7.0 |
2.5 |
393.6 |
| 1993 |
10.5 |
13.5 |
7.0 |
2.5 |
411.6 |
| 1994 |
10.5 |
13.5 |
7.0 |
2.5 |
436.5 |
| 1995 |
10.5 |
13.5 |
7.0 |
2.5 |
456.9 |
| 1996 |
10.5 |
13.5 |
7.0 |
2.5 |
448.7 |
| 1997 |
10.5 |
13.5 |
7.0 |
2.5 |
463.0 |
| 1998 |
10.5 |
13.5 |
7.0 |
7.0 |
476.1 |
| 1999 |
10.5 |
13.5 |
8.0 |
8.0 |
483.2 |
| 2000 |
10.5 |
13.5 |
9.0 |
9.0 |
506.4 |
| 2001 |
10.5 |
13.5 |
9.0 |
9.0 |
516.4 |
| 2002 |
10.5 |
13.5 |
9.0 |
9.0 |
523.8 |
| 2003 |
10.5 |
13.5 |
9.0 |
9.0 |
531.0 |
| 2004 |
10.5 |
13.5 |
9.0 |
9.0 |
566.8 |
| 2005 . |
10.5 |
13.5 |
9.0 |
9.0 |
559.0 |
| 2006 |
10.5 |
13.5 |
9.0 |
9.0 |
543.0 |
| 2007 |
10.5 |
13.5 |
10.5 |
10.5 |
553.0 |
| 2008 est |
10.5 |
13.5 |
10.5 |
10.5 |
na |
Petroleum Products Gross Receipts Tax
The Petroleum Products Gross Receipts Tax is imposed on all companies engaged in refining and/or distributing petroleum
products for distribution in this State. It applies to the first sale, not for export, of petroleum products within New Jersey.
The Constitution requires that not less than $200 million annually be dedicated for transportation capital purposes.
The current tax includes a variety of exemptions. Home heating oil (including #2, #4, and #6 heating oils) and propane gas and
kerosene used for residential heating are exempt from tax. Also exempt from tax are receipts from sales of petroleum products
used by marine vessels engaged in interstate or foreign commerce; receipts from sales of aviation fuels used by airplanes in
interstate or foreign commerce other than burnout portion; receipts from sales of asphalt and polymer grade propylene used in
the manufacture of polypropylene; receipts from sales to nonprofit entities qualifying for exemption under the Sales and Use Tax
Act; and receipts from sales to the United States or the State of New Jersey. Effective January 1, 2001, P.L. 2000, C. 156,
phased out, over a three-year period, the Petroleum Products Gross Receipts Tax for fuel used by any utility, co-generation
facility, or wholesale generation facility to generate electricity sold at wholesale or through certain retail channels.
The petroleum products tax is imposed at the rate of 2¾ percent on gross receipts from the first sale of petroleum products in
New Jersey. In the case of fuel oils, aviation fuels, and motor fuels this rate is converted to 4 cents per gallon.
Revenues collected from this tax have been as follows:
Petroleum Products Gross Receipts Tax
Revenues Collected
(Millions of Dollars)
| FY |
Revenues
Collected |
| 2000 |
208.9 |
| 2001 |
215.8 |
| 2002 |
219.7 |
| 2003 |
214.4 |
| 2004 |
216.2 |
| 2005 |
248.5 |
| 2006 |
247.0 |
| 2007est |
225.0 |
Sales and Use Tax
New Jersey imposes a Sales and Use Tax, which applies to receipts from retail sale, rental, or use of tangible personal
property; retail sale of producing, fabricating, processing, installing, maintaining, repairing, storing, and servicing
tangible personal property; maintaining, servicing, or repairing real property; certain direct mail services; sales of
restaurant meals; rental of hotel and motel rooms; certain admission charges; and telecommunications services.
A compensating use tax is also imposed on retail purchases of tangible personal property or certain services made outside
the state for use in New Jersey on which a sales tax would be due but has not been paid. The rate of tax is 6 percent on
taxable sales.
Article 8, Section 2, Paragraph 4 of the State Constitution dedicates no less than $200 million annually from the Sales and
Use Tax to transportation capital improvement purposes. Although not specified in the constitutional language, the Trust Fund statute identifies sales tax receipts from new vehicle purchases as the sales tax component intended to generate revenues for the Trust Fund.
A variety of products and services are exempt from the tax. Major exemptions include sales of newspapers and magazines; casual
sales except motor vehicles and registered boats; clothing, except furs; farm supplies and equipment; flags of New Jersey and
the United States; unprepared food for off-premises consumption; food sold in school cafeterias; prescription and nonprescription
drugs and other medical aids; motor fuels; periodicals and textbooks; professional and personal services; real estate sales;
tangible personal property used in research and development; transportation of persons or property; production machinery and equipment.
New Jersey's first sales tax became effective on July 1, 1935.
The tax rate was set at 2 percent. P.L. 1935, provided that
sales taxation would cease as of June 13, 1938. Sales and Use
Tax next became effective July 1, 1966. Rate of tax was set
at 3 percent (C. 30, P.L. 1966). Additional exemptions from
the tax were provided by C. 25, P.L. 1967. Chapter 7, PL 1970,
increased the tax rate to 5 percent, effective March 1, 1970.
This Act and C. 25, PL 1970, contained certain transitional
provisions relating to this increased rate. Effective July 1,
1972, sales of alcoholic beverages, except draught beer sold
by the barrel, to any retail licensee. Effective January 3, 1983 (C.227, P.L. 1983) the Sales and Use Tax was increased from 5% to 6% and on July 1, 1990 from 6% to 7% (C.40,P.L. 1990). On July 1, 1992, the rate was decreased back to 6% (C.11, P.L. 1992). Effective July 15, 2006, the Sales and Use Tax rate was increased from 6% to 7% by C.44, P.L. 2006.
Revenues collected from this tax have been as follows:
Sales and Use Tax
(Millions of Dollars)
| FY |
Revenues
Collected |
| 2000 |
5,508 |
| 2001 |
5,759 |
| 2002 |
5,997 |
| 2003 |
5,936 |
| 2004 |
6,270 |
| 2005 |
6,552 |
| 2006 |
7,733 |
| 2007 est |
8,721 |
Good Driver Vehicle Registration Surcharge
During the early 90s the State of New Jersey collected surcharges on all motor vehicle registrations in order to help alleviate a
large deficit in the New Jersey Automobile Guarantee Fund. The surcharge rate was $15 on pre-1989 vehicles, $40 on post 1989
vehicles, and $75 on commercial vehicles. The surcharges were originally targeted to sunset in 1997 when they were no longer
needed for automobile insurance purposes.
However, the Transportation Trust Fund Renewal Legislation in 1995 revised the statute to gradually reduce the surcharges but
statutorily dedicate the proceeds to the Transportation Trust Fund. The "good driver surcharge" fee is $7.50 on passenger vehicle
registrations and $37.50 on commercial vehicle registrations.
Unlike other revenues which support the Trust Fund, there is no statutory "minimum" dedication associated with "good driver surcharge" revenues. Instead, the statute dedicates such revenues "as needed". Actual revenues collected from the "good driver surcharge" are as
follows:
Good Driver Registration Surcharge
(Millions of Dollars)
| FY |
Revenues
Collected |
| 2000 |
77.8 |
| 2001 |
60.3 |
| 2002 |
62.8 |
| 2003 |
60.2 |
| 2004 |
76.2 |
| 2005 |
81.6 |
| 2006 |
80.0 |
| 2007 est |
77.4 |
Heavy Truck Registration Fees
The 1984 Transportation Trust Fund Legislation included the imposition of new fees on trucks weighing more than 18,000 pounds.
The truck fees included three components.
The first was an increase in the registration fees for all trucks registered in New Jersey and weighing more than 18,000 lbs.
The second was a decal fee that was to be imposed on all New Jersey registered and out of state registered trucks subject to the
State's Motor Fuel Use Tax.
The third component was a 3 cent "diesel differential" on the motor fuels tax, which raised the diesel fuel tax from 8 to 11 cents
per gallon. The Trust Fund statute dedicated the revenues from these fees, but not less than $30 million, to the Trust Fund.
Actual revenue yield from this package of fees is unknown. The Motor Vehicle Commission does not track and report on the impact of
rate increases in specified weight categories from the 1985 Legislation. The decal fee was eventually ruled unconstitutional. The
diesel differential is still collected and is estimated to yield approximately $24.5 million.
Toll Road Contributions
The 1984 Transportation Trust Fund Legislation included a requirement that the three highway toll road authorities enter into a
contract with the State Treasurer to contribute $24.5 million annually for state transportation capital purposes. Of that amount,
the New Jersey Turnpike Authority was to contribute $12 million annually, the New Jersey Highway Authority (Garden State Parkway)
$10 million annually and the South Jersey Transportation Authority $2.5 million annually.
The New Jersey Turnpike Authority subsequently merged with the New Jersey Highway Authority and became responsible for one $22 million
annual payment. While the contribution rate for the authorities has not changed since 1985, the $22 million Turnpike contribution
was forgiven by the State Treasurer for FY 2005 and FY 2006 in order to facilitate advancement of the critical high-cost Driscoll
Bridge Replacement project.
For FY 2007, the New Jersey Turnpike contributed an additional 27.5 million to the State or a total of $49.5. Combined with the SJTA contribution of $2.5 million, a total of $52 million was contributed by the toll road authorities. Of that amount, $!2 million was appropriated to the NJTTFA and the remaining $40 million for NJDOT operations and maintenance. |
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