The New Jersey Department of Treasury has announced an increase in the state’s petroleum products gross receipts tax, effective January 1, 2025. The tax rates for the first quarter of 2025 will rise as follows:
- Gasoline and liquid petroleum gas (LPG) will see a tax increase to $0.344 per gallon, up from the previous rate of $0.318 per gallon.
- Diesel fuel will be taxed at $0.384 per gallon, up from $0.358 per gallon.
In addition to the gross receipts tax, there are separate excise taxes that apply:
- Gasoline will also be subject to an excise tax of $0.105 per gallon.
- Diesel fuel will incur an excise tax of $0.135 per gallon.
As a result of these changes, the total tax per gallon will increase to:
- $0.449 per gallon for gasoline
- $0.519 per gallon for diesel fuel
This adjustment reflects a 2.6-cent increase in the tax rate for gasoline and a similar increase for diesel fuel. The New Jersey Department of Treasury’s decision is part of ongoing efforts to fund transportation infrastructure and other state projects.
These increases are likely to impact both consumers and businesses that rely on petroleum products, with potential effects on fuel prices across the state. Residents and businesses are encouraged to stay informed about these changes and plan accordingly for the coming year.
For more information, please contact Martin D. Hauptman at (973) 243-7912 or via email at mhauptman@mblawfirm.com