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New Jersey Transportation Trust Fund Authority  
      
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The Transportation Trust Fund provides funding for New Jersey's transportation system

 

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
FY
Motor
Fuels
Petro
Gross

Sales Tax

Sub-Total
Motor Fuels
Heavy
Truck Fees
Toll
Roads

Good Driver Surch.

Other
Sub-
Total
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
See
Note 1
See
Note 1
24.5
 
42.5
67.0
155.0
1994
88.0
 
 
88.0
See
Note 1
See
Note 1
24.5
 
47.9
72.4
160.4
1995
88.0
 
 
88.0
See
Note 1
See
Note 1
24.5
 
100.9
125.4
213.4
1996
88.0
 
 
88.0
See
Note 1
See
Note 1
24.5
 
84.1
108.6
196.6
1997
280.0
 
 
280.0
See
Note 1
See
Note 1
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
2009
483.0
200.0
200.0
883.0
 
0.0
12.0
0.0
0.0
12.0
895.0
2010
483.0
200.0
200.00
883.0
 
0.0
12.0
0.0
0.0
12.0
895.0
2011
483.0
200.0
200.0
883.0
 
0.0
12.0
0.0
0.0
12.0
895.0
2012
522.2
222.5
200.0
944.7
See
Note 3
0.0
12.0
0.0
0.0
12.0
956.7
2013
520.2 228.0 210.9 958.9 See
Note 3
0.0 12.0 0.0 0.0 12.0 970.9
2014
531.0 228.0 353.6 1112.6 See
Note 3
0.0 12.0 0.0 0.0 12.0 1124.6
2015 est. 516.0 215.0 517.5 1248.5   0.0 12.0 0.0 0.0 12.0 1260.5

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. See FY 93-97 above.

Note 2: Grand Total figures above are as of respective Appropriation Act dates

Note 3: Constitutionally Dedicated Revenue figures above reflect any mid-year lapses to the general fund.

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 $540 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 purposes. 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. In fiscal year 2013, the legislature appropriated $540 million of the motor fuels tax to the Transportation Trust Fund.

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
530.9
2004
10.5
13.5
9.0
9.0
566.8
2005
10.5
13.5
9.0
9.0
547.3
2006
10.5
13.5
9.0
9.0
550.9
2007
10.5
13.5
10.5
10.5
561.9
2008
10.5
13.5
10.5
10.5
563.2
2009
10.5 13.5 10.5 10.5 538.2
2010
10.5 13.5 10.5 10.5 535.3
2011
10.5 13.5 10.5 10.5 524.2
2012
10.5 13.5 10.5 10.5 539.7
2013
10.5 13.5 10.5 10.5 524.6
2014 (est) 10.5 13.5 10.5 10.5 547.0

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 New Jersey. It applies to the first sale, not for export, of petroleum products within the state. 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 2 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
224.8
2007
232.4
2008
230.7
2009
222.5
2010
216.3
2011
216.4
2012
223.3
2013
206.5
2014 (est)
228.0

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.

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
5,508.0
2001
5,758.7
2002
5,996.8
2003
5,936.1
2004
6,261.7
2005
6,552.2
2006
6853.4
2007
8,609.6
2008
8.915.5
2009
8.264.2
2010
7,879.9
2011
8,126.4
2012
7,935.8
2013
8,235.1
2014 (est)
8,910.0

Good Driver Vehicle Registration Surcharge

During the early 1990s the State of New Jersey collected surcharges on all motor vehicle registrations 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".

As indicated in the Appropriation Revenues chart above, the Legislature has not appropriated Good Driver revenues to the Authority since FY 2001.

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
60.3
2004
76.3
2005
81.7
2006
80.9
2007
78.7
2008
75.6
2009
69.8
2010
70.9
2011
72.4
2012
73.9
2013
74.7
2014 (est)
75.8

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.

As indicated in the Appropriation Revenues chart above, the Legislature has not appropriated Heavy Truck registration fees to the Authority since FY 2001.

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, $12 million was appropriated to the NJTTFA and the remaining $40 million for NJDOT operations and maintenance. This $12 million is still appropriated to the NJTTFA through FY 2013.

Beginning in FY 2012, a separate agreement was established with the NJ Turnpike Authority to provide for additional contributions of pay-as-you-go funding to the Authority. In FY 2012, $66 million was provided. There were no additional contributions in FY 2013 and FY 2014.

 
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