NJ Assembly votes to hike gas tax 23 cents, cut sales tax

- Overnight, with Republican Gov. Chris Christie's support, the Democrat-led New Jersey state Assembly passed sweeping legislation to hike the state's gasoline tax by 23 cents per gallon, while cutting the sales tax from 7 to 6 percent. It would also pay the state's transportation trust fund $2 billion a year over the next eight years.

The vote early Tuesday, at about 12:30am, came after a day of backroom talks between Christie and legislative leaders, including Assembly Speaker Vincent Prieto.

It now heads to the Senate, where lawmakers adjourned on Monday before taking up a competing measure.

Senate Majority Leader Loretta Weinberg said her colleagues wanted to review the costs associated with the proposed sales tax cut before weighing in. 

Christie had opposed another agreement to raise the gas tax while cutting the estate tax, raising a credit for low-income earners and establishing a charitable tax deduction.

Prieto says his deal will retain cuts on retirement income taxes.

The state's transportation trust fund runs out of borrowing authority on Friday, July 1.

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