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New Jersey gas prices to jump after vote to raise tax passes

New Jersey lawmakers voted Friday to raise the gas tax 23 cents per gallon to pay for the state's expired transportation trust fund.

Even with the increase, New Jersey's gas tax would still remain lower than neighboring NY and Pennsylvania.

While the 23-cent gas tax increase will bring New Jersey's state gas tax up to par with other states in the Northeast, the capital program it will afford - $16 billion over eight years - is a continuation of the previous 10 years of stagnant funding.

If enacted, New Jersey's gas tax would still remain lower than neighboring NY and Pennsylvania.

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Also part of the 8-year deal, said to raise $2 billion a year, is the elimination of the estate tax and a cut to the state's sales tax.

The measure would go into effect November 1 or 15 days after Christie signs it, whichever is later.

The bill passed despite robust bipartisan opposition. Republican Governor Chris Christie helped create the measure and is expected to sign it. Most significantly, it had the backing of Christie, Democratic Senate President Steve Sweeney and Democratic Assembly Speaker Vincent Prieto. Christie and lawmakers struck a $16 billion deal on September 30 to fund road, bridge and transit projects for eight years.

Jersey's gas tax now will rank sixth-highest nationwide, up from 49. Veterans would get a personal exemption for state income taxes under the measure.

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