$500 Gas Tax Rebate In NJ? Some Residents Not In Favor: Patch Survey

NEW JERSEY - If you’re cutting back your time behind the wheel to avoid paying more at the pump, you’re not alone.

Skyrocketing gas prices across the country and in New Jersey are attributed to supply crunches that began in the pandemic now being exacerbated by the financial fallout of Russia's invasion of Ukraine. Traders, shippers and financers separating themselves from Russian oil supplies have removed millions of barrels of oil from the global supply, according to a Wall Street Journal report.

Now, New Jersey residents are paying an average $4.08 per gallon for gas, up from $2.89 a year ago, per AAA. And towering gas prices are not just affecting the personal transportation sphere: price hikes are now impacting the cost of delivery and ride-share apps like Uber, GrubHub and Lyft. Read more: Uber To Raise Fees In NJ To Offset High Gas Prices

The rising cost of gas - and the subsequent increase in other products affected via the supply chain - is causing many to scramble for ways to save. To make up for the extra cash spent at the pump, some New Jersey residents are traveling less, including minimizing weekend travel and stocking up on supplies during grocery runs:

“[We’re] Cutting back on store visits and consolidating where we shop,” one Patch reader said in an online survey conducted by Patch. “Traveling less on weekends (not doing day trips) and staying close to home.”

“I shop way less often than I did. Only go twice a week compared to 5 at least,” one Patch reader said. “I used to enjoy a nice long ride a couple times per week. To a park, the beach, a zoo, a local garden. I have a fixed income, so these gas and food bills are lowering my spendable income dramatically.”

State officials are also seeking ways for residents to save. New legislation sponsored by senate and assembly Republicans proposes that a $500 refundable income tax credit should be available to families with an income less than $250,000 when they file their 2021 New Jersey tax returns.

The Gas Price and Inflation Tax Credit Act, introduced in March, would provide If a taxpayer eligible for the rebate has already filed their 2021 taxes, they would automatically receive a $500 payment from the State when the legislation is enacted.

Gov. Phil Murphy has called (which would in total provide $1.5 billion of immediate tax relief to Garden State residents) "not a crazy idea," adding that he's "not against a rebate."

"New Jersey families are getting hit by the double whammy of high gas prices and the worst inflation in 40 years," said Sen. Ed Durr, the prime sponsor of the proposal in the Senate. "At the same time, Governor Murphy has taken billions more in taxes from New Jerseyans than he budgeted. That's the people's money, they need it to pay their bills, and we should give it back. There shouldn't be a single Democrat in New Jersey who opposes putting $500 back in people's pockets right away." Read more: State $500 Gas Rebate Proposal Demands Action Now: Republicans

But according to an online survey Patch conducted with its readers, while residents are largely in favor of a temporary gas tax suspension, opinions regarding rebates are mixed.

“We should not have a tax suspension nor any rebates. The debt is out of control, as is inflation. Just allow all sorts of energy sources and get over it,” one Patch reader wrote.

“Suspend the gas tax for federal and state. The idea of sending rebates to everyone is crazy. That means people who do not have a vehicle will be getting money back when they haven't even spent anything on fuel,” another wrote.

“Taxes are not cheap here and I don't see my tax dollars repairing the roads. A rebate would be very welcomed,” another said.

Per the survey, 80.6 percent of Patch readers (1,199 respondents) are in favor of a temporary gas tax suspension from the federal government, while 81.7 percent of readers (1,215 respondents) opt for a temporary statewide gas tax suspension.

Of those in favor of a gas tax suspension in the state, 41.5 percent want the suspension to be permanent. 27.2 percent would like the suspension to be in place until next January, while 13.9 percent would opt for another specified date.

“Would need to see what the impact would be if NJ suspended the gas tax before I'd agree to it. I feel the federal government would be able to suspend the tax without an impact,” one Patch reader wrote.

About the survey

Patch opened the survey to readers on March 29 and asked New Jersey residents a number of specific questions about rising gas prices and insights. Patch received answers from 1,488 respondents.

The survey is not scientific, but gives a general gauge of how New Jersey Patch readers feel about how inflation is impacting daily life in the state.