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Singleton & Burzichelli Introduce Legislation to Deliver Tax Relief via Gas Tax Deduction

Bill Would Allow Middle-Class Filers to Deduct Motor Fuel Tax from Their State Income Taxes

Assemblymen Troy Singleton and John Burzichelli have introduced legislation to deliver tax relief to middle-class families in New Jersey facing an increase in the cost of gasoline.

“Hard-working people in this state need their cars to get to work and take their kids to school each day. Particularly for those New Jersey residents without access to quality public transportation, not driving is not an option,” said Singleton (D-Burlington). “The gas tax increase undoubtedly is a necessary solution that will ensure the safety of bridges and roads across the state, but a commitment to tax fairness for New Jersey families must accompany its implementation.”

The bill (A-4247) would provide a state gross income tax deduction for New Jersey motorists to offset a gas tax increase. Under the bill, taxpayers with incomes under $100,000, including married couples filing jointly, married persons filing separately and individuals, would be permitted to deduct taxes paid on motor fuel and not otherwise reimbursed.

The maximum deduction allowed under the legislation is $500 for the current taxable year and $1,000 thereafter. The measure, which is applicable only to personal vehicles, would take effect immediately after enactment.

“Paying more to put gas in the tank means everyday families in New Jersey will have to make tough decisions about their household budgets. The least the state can do is ease that burden for those who need it most,” said Burzichelli (D-Cumberland/Gloucester/Salem). “As we usher in tax relief in the form of an elimination of the estate tax, an increase in the earned income tax credit, a veterans income tax deduction and a retirement income tax deduction, it’s imperative for our state to remember the middle-class families working hard to make ends meet.”