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To: Wuli
. . . because the gasoline tax is paid by all drivers.

Not in New Jersey.

Some unique characteristics of this state are that it is: (1) small in size, and (2) located in close proximity to major cities without having any major cities itself. Because of this, the state's roadways are used by a lot of motorists from out of state who can drive all the way through the state multiple times without filling their gas tanks.

This is not an issue for autos because New Jersey's low gasoline tax makes it an attractive place for out-of-state motorists to buy fuel (this is why you have so many busy gas stations in New Jersey on major roads along the NJ-NY border). But truckers don't have the same price incentive (the state's diesel fuel tax is comparable to other states), and heavy trucks produce the most severe wear and tear -- by a wide margin -- on the state's roadways and bridges.

An ideal toll scenario for New Jersey -- though this is highly theoretical since such a thing isn't really feasible -- would be to double the tolls on the NJ Turnpike, but offer a 50% discount to anyone who doesn't travel the entire length of the roadway. That way the highest tolls are paid by motorists and truckers who are passing through without doing business in the state.

36 posted on 11/16/2007 9:46:32 AM PST by Alberta's Child (I'm out on the outskirts of nowhere . . . with ghosts on my trail, chasing me there.)
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To: Alberta's Child

“Some unique characteristics of this state are that it is: (1) small in size, and (2) located in close proximity to major cities without having any major cities itself. Because of this, the state’s roadways are used by a lot of motorists from out of state who can drive all the way through the state multiple times without filling their gas tanks

“Can” does not equal “do”, and I could waste them noting the state-gas-tax differences (considerable) between New Jersey and its neighbors, which help explain why your can is really a “rarely happens” circumstance for most drivers who traverse the state.

For truckers heading north or south through New Jersey and wherein they have as well, or will, come from or head into New York state, they as well, when needed, will fill-up in New Jersey and avoid both sales taxes on diesel (between $0.075 and 0.08) as well as fees based on weight.

New Jersey toll roads (which, via the turnpike, cost NJ toll road drivers alone more than New Jersey takes in from all its gasoline taxes (http://www.taxfoundation.org/blog/show/22444.html
); which suggests two things. The interstate truck traffic on the turnpike is already paying its share of “wear and tear” costs and interstate travelers are not in fact getting a bargain from the small size of New Jersey but are in fact getting taxed (tolls + gas taxes) at a higher-rate per mile driven than are New Jersey residents.

New Jersey fuel-tax revenue of $553 million (http://www.njleg.state.nj.us/legislativepub/budget/FY07_December.pdf
) reflects the sale of 3bil 813mil+ galllons of fuel. That means, at current rates of fuel sales (expected to increase), every penny increase in the gas tax will raise $38mi+ in revenue.

With gas tax differentials between New Jersey and its neighbors running between a high of 15.8 cents per gallon (NY) and 8.5 cents per gallon (Delaware). All of New Jersey’s neighbors (NY, CT, DE, MD, PA) are higher than New Jersey and between them, the median is 12.2 cents higher. If New Jersey attempted simply cut in half the median of how much lower its rate is to its neighbors (50% of 12.2, or 6.1 cents) it would still have a gas tax rate lower than all its neighbors, lower than the national average and it would raise $228mil+/year. Even if half of that went into the transportation trust fund, the other half would be more than enough, for a temporary period (10,15,20 years) to payoff bonds used to retire state debt coming due sooner. By then end of that period, inflation would likely require the transportation trust fund to have that revenue re-designated to it.

Raising tolls increases costs to a narrower demographic group, which,usually in the long run prove to be both insufficient and counter-productive.

Of course, I would prefer a governor and legislature that would make substantial enough budget cuts to avoid any tax increase. Without that happening, raising tolls on toll roads should neither be the first, next or last option. Its another budget gimmick.


37 posted on 11/16/2007 12:37:32 PM PST by Wuli
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