New Jersey's Assembly passed legislation early Tuesday to raise the state's gasoline tax by 23 cents per gallon and cut the sales tax from 7 percent to 6 percent.
The bill, which passed the Democrat-led Assembly with Republican Gov. Chris Christie's support, heads to the Democrat-led Senate, NBC 4 New York reported. If approved, it would mean an 11 percent increase in the gas tax, the nation's second-lowest, after Alaska, according to NBC 4 New York.
The legislation would set up a $2 billion-per-year transportation trust fund over the next eight years to cover road and bridge work. Without the legislation, the fund would run out of borrowing authority at the end of June.
"I'm pleased that the Assembly has heeded my suggestion for tax fairness," Christie told reporters outside of his office. "I think it was needed, necessary, while at the same time we're going to have constitutionally dedicated revenue to improve roads, bridges and mass transit systems here in the state."