top of page

Opinion: Addressing the North-South inequity in New Jersey’s gas tax revenue

South Jersey drivers pay same rate as those in North, but region sees fraction of benefits


New Jersey’s gas tax has long been a source of contention, and the state treasury’s recent announcement to raise the per-gallon rate yet again necessitates considerable debate. While the need for significant investment in our regional infrastructure is undeniable, the way our gas tax revenues have been allocated leaves much to be desired. South Jersey remains disproportionately underserved despite its significant contributions to the state’s economy. This inequity stifles our region’s economic growth and leaves many communities at a disadvantage.


South Jersey drivers pay the same gas tax rate as those in the northern part of the state, yet our region sees a fraction of the benefits. Investments to improve our roadways, bridges, and public transit systems are consistently disproportionate to that of our northern neighbors. Meanwhile, South Jersey’s infrastructure continues to lag, making it much more difficult for businesses to thrive and denying residents access to needed services and opportunities.


New Jersey’s transportation planning must adopt a holistic approach that considers the unique needs of our region. Investments in Southern New Jersey must address the realities of a predominantly rural landscape. This includes expanding bus routes and commuter rail, developing regional transit hubs, and exploring innovative solutions such as on-demand ride-sharing services tailored to low-density areas.


Equity in infrastructure funding is not just a regional issue; it is a matter of statewide economic health. Southern New Jersey contributes to the state’s economy through its agricultural hubs and flourishing manufacturing, logistics and tourism sectors. Yet, the lack of adequate transportation systems hampers the ability to fully leverage these assets.


This is not just a missed opportunity for South Jersey but for the entire state, which could benefit from a more balanced and inclusive approach to economic development. By neglecting South Jersey’s infrastructure, we limit the region’s potential to attract new businesses and create jobs.


South Jersey needs its fair share of gas tax revenues to break this cycle and unlock its full potential. Targeted investments in our infrastructure would not only level the playing field but also provide the foundation for sustained economic growth.


The Southern New Jersey Development Council has long advocated for a more balanced approach to infrastructure funding. We urge state leaders to adopt policies that recognize the unique needs and contributions of South Jersey. Specifically, we call for:


  1. Transparency in gas tax revenue allocation: Clear reporting on how gas tax revenues are distributed across regions, ensuring accountability and fairness.

  2. Priority funding for underserved communities: Directed investments in areas with the greatest need, including rural and low-income communities in South Jersey.

  3. A long-term infrastructure plan: A comprehensive strategy that prioritizes equity and considers the unique geographic and economic challenges of South Jersey.


The economic health of New Jersey depends on the strength of all its regions. South Jersey has long been a driver of economic growth, yet, without equitable investment in infrastructure, our region cannot realize its full potential.


As discussions about increasing the gas tax move forward, I implore our state leaders to consider the broader implications of inequity. South Jersey deserves better, and the time to act is now. Let’s work together to ensure that every community in our state, regardless of zip code, has access to the resources they need to succeed. Only then can we build a stronger, more equitable New Jersey.

bottom of page