New Jersey Assembly Bill A4775

New Jersey 2026-2027 Regular Session

• Introduced: 3/19/26
• Refer: 3/19/26

Caption

Excludes passenger and freight rail projects from purposes for which revenue from increase in petroleum products gross receipts tax revenue may be used.

Summary

A4775 amends New Jersey’s transportation funding law to bar revenues from the 2016 increase in the petroleum products gross receipts tax from being used for passenger rail or freight rail projects. The bill specifically revises the section governing the Special Transportation Fund to remove rail service projects from the list of eligible uses for those tax revenues, while leaving the rest of the transportation funding framework intact. The measure is framed as a targeted funding restriction rather than a broader transportation policy change. Its practical effect is to redirect the petroleum tax revenue stream away from rail-related capital projects and toward other transportation purposes allowed under existing law, such as highways, bridges, and other non-rail transportation needs. The bill takes effect immediately if enacted.

Impact

The bill would amend P.L.1984, c.73, specifically the Special Transportation Fund provisions in C.27:1B-21, by adding a prohibition on using petroleum products gross receipts tax increase revenues for passenger rail or freight rail service projects. This would narrow the set of eligible transportation projects that can be supported by that revenue source and could affect funding availability for NJ Transit rail improvements and freight rail infrastructure projects that had previously been eligible under the transportation funding scheme.

Sentiment

No committee transcripts or recorded votes were provided, so there is no documented debate or formal vote history to gauge legislative sentiment. Based on the bill text and sponsor statement alone, the measure appears to reflect a policy preference for excluding rail projects from this particular tax-funded transportation revenue stream, but the available record does not show broader support or opposition.

Contention

The central point of contention is likely the allocation of transportation tax revenue: whether money from the petroleum products gross receipts tax increase should be available for rail projects or reserved for other transportation uses. Supporters of the bill would likely favor limiting the fund to non-rail transportation priorities, while opponents would likely argue that passenger and freight rail are important transportation investments that should remain eligible for funding. No specific stakeholder positions, committee objections, or amendments are available in the provided materials.