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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
($Million)
Statutory Funds
($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
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
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
0.0
78.0*
0.0
0.0
12.0
1,022.7*
2013
520.2 228.0 210.9 958.9   0.0 12.0 0.0 0.0 12.0 970.9
2014
531.0 228.0 353.6 1112.6   0.0 12.0 0.0 0.0 12.0 1124.6
2015
516.0 215.0 433.4 1164.4   0.0 12.0 0.0 0.0 12.0 1176.4
2016
516.0 215.0 473.7 1204.7   0.0 12.0 0.0 0.0 12.0 1216.7
2017
515.0 218.1 551.7 1284.8   0.0 12.0 0.0 0.0 12.0 1296.8

* Includes $66 million in Pay as You Go appropriation revenue in FY 2012

Note: In the table above, the fiscal year totals for constitutional and statutory revenues are consistent with the respective amounts refelected in the TTFA annual financial statements.


Motor Fuel Taxes

The Motor Fuels Tax, which is levied primarily on the sale of gasoline and diesel fuel, is passed on directly to consumers but is collected by the Division of Taxation at the wholesale level from distributors. 

Historically, the 3 cent diesel differential, which equates to approximately $25 million annually, has not been appropriated to the TTFA, but rather has been deposited into the State’s General Fund. However, the constitutional amendment approved by the voters in November 2016   dedicates all motor fuel tax revenues for transportation purposes.

Historical tax rates and revenues collected from the Motor Fule Tax tax, as reflected in the State's Comprehensive Annual Financial Report (CAFR) have been as follows:


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

10.5 13.5 10.5 10.5 530.4
2015
10.5 13.5 10.5 10.5 535.5
2016
10.5 13.5 10.5 10.5 554.5
2017
10.5 13.5 10.5 10.5 540.0 *

* estimate based on FY2017 Appropriation Act

 

Petroleum Products Gross Receipts Tax

The Petroleum Products Gross Receipts Tax (PPGRT)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. Prior to the enactment of L. 2016, c. 57, the original PPGRT rate of 2.75% on gross receipts from the refining or distribution (or both) of highway fuel converted to 4 cents per gallon at the retail level. When combined with the base Motor Fuels Tax, this formed an overall tax rate of 14.5 cents per gallon. The new legislation increased the PPGRT rate on highway fuel from 2.75% to 12.85%, which equates to an additional 22.6 cents per gallon at the retail level as of November 1st, 2016.  (The legislation also increased the rate on non-motor fuel petroleum products from 2 ¾% to 7%.) As a result, the State’s overall tax rate for motor fuels increased from 14.5 cents to 37.1 cents per gallon.

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, 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.

Revenues collected from this tax, as reflected in the State's CAFR, 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
216.8
2015
215.1
2016
214.8
2017
218.1 *

* estimate based on FY2017 Appropriation Act

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. The current rate of 7% had been in effect since July of 2006. As part of the bi-partisan legislation and as offsets to the 22.6 cent increase in the gas tax (as of November 1st, 2016), various state taxes, including the sales tax, will be reduced. When fully phased in on January 1, 2018, the new sales tax rate will drop by a total of three-eighths of a percentage point to 6.625%.  

A compensating use tax is also imposed on retail purchases of 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 VIII, 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.

Historically, New Jersey's first sales tax of 2% became effective July 1, 1935. (P.L. 1935). It provided that sales taxation would cease as of June 13, 1938. On July 1, 1966 the Sales and Use Tax Rate was raised to 3% (C. 30, P.L. 1966) with additional exemptions from the tax provided in 1967 (C. 25, P.L. 1967). Effective March 1, 1970 the tax rate increased to 5% (Chapter 7, PL 1970). This Act and C. 25, PL 1970, contained certain transitional provisions relating to this increased rate and effective July 1, 1972, sales of alcoholic beverages, except draught beer sold by the barrel, to any retail licensee. On 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). On July 15, 2006, the Sales and Use Tax rate increased from 6% to 7% (C.44, P.L. 2006).

Revenues collected from this tax, as reflected in the State's CAFR 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
8,169.7
2015
8,197.9
2016
8,512.6
2017
9,032.6 *

* estimate based on FY2017 Appropriations Act

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.

Actual revenues collected from this tax, as reflected in the State's CAFR have been 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
76.8
2015
78.1
2016
79.8
2017
81.3 *

* estimate based on FY2017 Appropriation Act


Heavy Truck Registration Fees

The 1984 Transportation Trust Fund Legislation included the imposition of new fees on trucks weighing more than 18,000 lbs. 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 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 Transportation Trust Fund statute dedicated the revenues from these fees, but not less than $30 million, to the Transportation 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 $25 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 ("SJTA") $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 million. 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 Transportation Trust Fund Authority (TTFA) and the remaining $40 million for NJDOT operations and maintenance. This $12 million was appropriated to the TTFA through FY 2017.

Beginning in FY 2012, a separate agreement was established with the New Jersey 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 from FY 2013 through FY 2017.

 
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