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New JerseyA4011220th Legislature (2024-2025)HouseWALLET

Revises "New Jersey Transportation Trust Fund Authority Act," revises calculation of gas tax rate, and establishes annual fee for zero emission vehicles.

Sponsored By: Clinton Calabrese (Democratic), Hall, Garnet R., Yvonne Lopez (Democratic), Paul A. Sarlo (Democratic), Nicholas P. Scutari (Democratic), Benjie E. Wimberly (Democratic)

Signed by Governor

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 2 benefits, 2 costs, 1 mixed.

State transportation projects face funding caps

The law caps transportation project appropriations, excluding federal funds, at $2 billion in each of state fiscal years 2025 and 2026. Caps rise to $2.06 billion in 2027, $2.122 billion in 2028, and $2.185 billion in 2029. These limits cover projects listed in the appropriations act and include the specified 2027–2029 county, municipal, state transportation, and transit allocations. The transportation financing board's certification standard also limits total project costs to $10.367 billion for fiscal years 2024–2028. Separately, the Commissioner's proposed-project reports due March 1, 2024, through March 1, 2028, cannot exceed $10.367 billion combined.

Fuel tax rates track revenue caps

For state fiscal years 2025–2029, the Treasurer adjusts the tax on companies' first sales of highway fuel each year. Revenue caps are $2.032 billion in 2025, $2.115 billion in 2026, and $2.199 billion in 2027. They rise to $2.282 billion in 2028 and $2.366 billion in 2029. A revenue shortfall raises the following year's cap; excess revenue lowers it. After consulting the legislative budget officer, the Treasurer sets rates effective January 1, rather than October 1. Household fuel prices may be affected indirectly, but the law does not set a per-gallon price change.

Counties, towns, and transit get funding

The law sets aside $60 million in state fiscal year 2027, $122 million in 2028, and $185 million in 2029. Each year's money is split equally among county aid, municipal aid, Department of Transportation projects, and New Jersey Transit projects. Each of these four groups gets $15 million in 2027, $30.5 million in 2028, and $46.25 million in 2029. County and municipal shares fund their respective transportation aid programs, not separate additional awards beyond this split. These allocations are in addition to the law's other required transportation set-aside.

Zero-emission vehicle owners pay annual fees

Beginning July 1, 2024, covered zero-emission vehicles registered in New Jersey carry an added annual registration fee. The fee is $250 for July 2024–June 2025, $260 for July 2025–June 2026, and $270 for July 2026–June 2027. It rises to $280 for July 2027–June 2028, then $290 annually beginning July 1, 2028. Owners pay with registration, including the full current-year fee when first registering a vehicle in a calendar year. Covered vehicles must meet California's zero-emission certification standards for their model year; substitute vehicle types allowed instead of pure zero-emission vehicles are excluded. Fee revenue goes to transportation project reserves and can pay bond debt only if constitutionally dedicated.

Transportation bonds get dedicated repayment rules

Bonds issued under this law count as transportation program bonds, including replacement bonds used to refinance them. They follow the existing transportation program bond rules. Their debt payments must come only from constitutionally dedicated revenue deposited in the designated transportation debt-service account.

Sponsors & Cosponsors

Sponsors

  • Clinton Calabrese

    Democratic • House

  • Hall, Garnet R.

    Affiliation unavailable

  • Yvonne Lopez

    Democratic • House

  • Paul A. Sarlo

    Democratic • Senate

  • Nicholas P. Scutari

    Democratic • Senate

  • Benjie E. Wimberly

    Democratic • Senate

Cosponsors

  • Linda S. Carter

    Democratic • House

  • Verlina Reynolds-Jackson

    Democratic • House

Roll Call Votes

All Roll Calls

Yes: 96 • No: 56

House vote • 3/18/2024

3RDG FINAL PASSAGE

Yes: 49 • No: 28

Senate vote • 3/18/2024

TABLE MOTION

Yes: 23 • No: 14

Senate vote • 3/18/2024

3RDG FINAL PASSAGE

Yes: 24 • No: 14

Actions Timeline

  1. Approved by Governor — P.L.2024, c.7.

    3/26/2024Governor

  2. Passed Senate, PBH — (24-14)

    3/18/2024Senate

  3. MOTION — To Table Sa (23-14) (Ruiz)

    3/18/2024Senate

  4. MOTION — To Sa (Bucco)

    3/18/2024Senate

  5. Substituted for S2931

    3/18/2024Senate

  6. Received in Senate, SWR, 2nd Reading in Senate

    3/18/2024Senate

  7. Passed Assembly — (49-28-0)

    3/18/2024House

  8. Reported, 2nd Reading in Assembly

    3/14/2024House

  9. Reported, Referred to Assembly Appropriations Committee

    3/7/2024House

  10. Introduced, 1st Reading in Assembly, Referred to Assembly Transportation and Independent Authorities Committee

    3/4/2024House

Bill Text

  • Version PL2024

    7/31/2024

    HTMLPDF

  • Version AL2024

    7/2/2024

    HTMLPDF

  • 3/19/24; as introduced

    3/19/2024

    HTMLPDF

  • As Introduced

    3/19/2024

    HTMLPDF

  • Assembly Appropriations Substitute (3/14/24)

    3/15/2024

    HTMLPDF

  • Assembly Transportation and Independent Authorities Substitute (3/7/24)

    3/8/2024

    HTMLPDF

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