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You may have noticed that New Jersey’s gas taxes have recently spiked at the pump. This is the first time in more than 26 years that we’ve seen a gas tax increase in NJ. And the next change could happen in less than two months. The new tax increase is called the Petroleum Products Gross Receipts Tax (PPGRT) and is meant to fund transportation projects like road and bridge improvements. PPGRT will affect petroleum products such as gasoline, blended fuel and diesel. In regards to home heating oil and the New Jersey gas tax, we understand there may be some questions.
Here’s what you need to know about home heating oil and the New Jersey gas tax.
On November 1, 2016, New Jersey gasoline tax increased by 22.6 cents-per-gallon, climbing from 14.5 cents per gallon, which was the second-lowest in the United States, up to 37.1 cents per gallon, which is now the seventh-highest in the U.S. The new petroleum products gross receipts tax puts a 12.85% on retail gasoline.
For diesel fuel used on roads and highways, PPGRT is scheduled to increase on January 1, 2017 and then again on July 1, 2017. Starting in January 2017, gasoline and diesel PPGRT will be adjusted by the NJ Division of Taxation on a quarterly basis, occurring again at the start of April, July and October.
The recent New Jersey's gas tax is fixed to consumption (unlike other states), rather than the price of a gallon of gasoline. In other words, the tax rate will not increase or decrease automatically as gas prices go up or down. For example, when more gasoline is sold in the NJ, the tax rate will decrease and if consumption is low, the tax rate will increase in order to make up for the slow revenue.
Thankfully, home heating oil and the New Jersey gas tax are not connected. The oil used for heating your home or business will not be affected by the recent New Jersey gas tax.
Rest easy; home heating oil is exempt from this tax.
Want to save? Snag some simple tips from our blog, “10 Home Heating Energy Tips for Winter” and get prepared for the cold weather ahead. Lawes Company has been serving customers in Shrewsbury, NJ with premium fuel for heating oil delivery for decades. Contact Lawes today to learn more at 732-741-6300.