New Jersey to Raise Gas Tax by 23 Cents, Governor Announces

New Jersey drivers are about to see their traditionally low gas prices rise — dramatically.

Drivers gassing up in New Jersey will have to pay 23 cents more per gallon under a deal reached Friday between Republican Gov. Chris Christie and Democratic leaders.

The agreement establishes a $2 billion per year trust fund over eight years, along with cuts in the sales and estate taxes and ends a three-month impasse over how to pay for road, bridge and transit work in the state.

The deal still must be passed through the Democrat-led Legislature, but Assembly Speaker Vincent Prieto and Senate President Steve Sweeney said they're confident they have the votes for the deal to pass. They're planning a voting session on Friday.

If it goes forward, it would be the first time since 1998 the state has raised its gas tax. It would also mean New Jersey no longer has the second-lowest fuel surcharge in the country at 14.5 cents. New York and Pennsylvania have higher gasoline taxes, Sweeney and Prieto said.

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