New Jersey lawmakers approve 23-cent gas tax hike

TRENTON, N.J. (AP) — New Jersey lawmakers and Gov. Chris Christie have voted to enact a 23-cent gas tax hike. 

The Democratic-led Legislature scheduled a Friday vote for the increase as part of an agreement between legislative leaders and the Republican governor.

The agreement will raise the state's gas tax from 14.5 cents to 37.5 cents a gallon. That's still lower than neighboring New York and Pennsylvania, but higher than Alaska, which has the lowest gas tax in the country.

The deal establishes a $2 billion-a-year transportation trust fund over eight years and cuts the sales and estate taxes, while also offering veterans and low-income residents tax credits, among other 

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