Stop Sen. Whelan’s Mileage Tax Scheme!

May 16, 2013

Sen. Whelan (D-02, Atlantic) has introduced a bill (S2531) that would impose a mileage-based tax on New Jersey motorists!  This idea would be disastrous for New Jersey families, businesses and motorists. (NOTE: The bill is up for discussion this Monday, May 20, during a hearing of the Senate Transportation Committee in the State House Annex, Committee Room 7, at 10:30am.)

The senator’s mileage tax scheme would impose a .83906 cent tax (.84 cents not 84 cents) for each mile driven while exempting motorists from the existing 10.5 cents/gallon tax. The result is most NJ motorists would end up paying twice as much or more in taxes than they are now.

Call Jim Whelan at (609) 383-1388 and tell him to can his crazy gas tax scheme or e-mail him at!

Let’s do the math.

Let’s assume the average motorist gets 25mpg, has a 12 gallon tank and is able to travel 300 miles per fill up. With New Jersey’s current 10.5 cents/gallon tax, you would pay $1.26 in gas tax every time you fill up.

What happens when we apply Sen. Whelan’s .83906 cent per mile tax? Take 300 miles and multiply by .0083906 and we get $2.52–double the current amount!

The Whelan mileage tax would also mean that motorists owning cars with better fuel economy would pay an even higher tax because they travel greater distances on less fuel!

Of course, all of the math laid out above assumes motorists will do all of their driving in New Jersey. Nothing in the bill takes into account the many miles driven out of state by businesses operating in New Jersey or residents traveling out of state to visit their friends or go on vacation. That means New Jersey drivers would be taxed on each mile they drive in Pennsylvania, New York or any other state on top of the gas tax they pay when filling up in other states. That is sheer lunacy!

Believe it or not, this scheme gets even worse!

Motorists subject to the Whelan mileage tax would have to report their mileage to the state NJMVC annually. The odometer reading would be recorded when your car gets inspected. The commission could force you to an inspection station to audit your car. And if a reading is not provided within a vague “reasonable time period” the NJMVC is empowered to fine you plus collect “unpaid fees and appropriate late payment penalties”.

Last but not least this would impose yet another mandate on New Jersey businesses. Gas retailers would have to absorb the costs of complying with the new law, while being tasked with applying/not applying the tax at the pump and having to spend time filling out paperwork to get reimbursed when the tax is wrongfully applied.

This is yet another ridiculous Trenton scheme that needs to be squashed!

Call Jim Whelan at (609) 383-1388 or e-mail him at and tell him to can his crazy gas tax scheme!

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