Fuel Tax Increase, Filing Deadline Suspended, Tariff Impact

December 5, 2024

Motor Fuel Tax increase January 1st

This week the Treasury Department announced that on January 1st, the petroleum products gross receipts tax (PPGRT) will increase by 2.6¢ per gallon on all gasoline and diesel motor fuel sold in the state. As with previous annual adjustments, this increase will be passed on to retailers on their first delivery after the New Year; there will be no ‘floor stocks’ tax on any gallons which are already in the ground. The total state and federal excise and PPGRT taxes on gasoline will be 63.3¢ a gallon and 76.3¢ a gallon for diesel. 

You’ll notice this announcement comes in December, when previously it came just before Labor Day weekend, to go into effect October 1. When the Legislature and Governor re-authorized the Transportation Trust Fund (TTF) earlier this year, they made a point of changing the date the annual adjustment goes into effect. The timing isn’t a coincidence, legislators learned over the last few years that it wasn’t helpful to have a gas tax increase go into effect one month before election day. Perhaps removing the election makes it more likely we can trust there’s no finger on the scale artificially lowering the rate of increase in years when NJ politicians are on the ballot and then having a bigger increase in the years when they’re not on the ballot. December and January also tend to be the cheapest months of the year for wholesale prices, so if there is going to be an increase this is a fitting time for it. The rate is authorized to be adjusted for the next 5 years as part of the program. 

Our concern remains that with the state’s official policy being a forced shift towards battery electric passenger and heavy duty vehicles, fuel sales will decline and the tax rate will increase even more per-gallon to compensate. The Treasury also states that they are basing the 2.6¢ increase on an estimate that motor fuel consumption will increase 0.6% this year. If it actually falls year over year, then expect a bigger increase in January 2026 to compensate, which will come just three weeks before Murphy leaves office.

Beneficial Ownership Report Requirement Suspended

Last month we warned you of an obligation to fill out a new form with the federal government, called the Business Ownership Information (BOI) report. This mandate applies to businesses with fewer than 20 employees and less than $5 million in annual revenue. It was set in law by the Corporate Transparency Act, and the due date was January 1st. This week though, a federal judge in Texas issued a sweeping order halting the enforcement of the law, while its constitutionality is being discussed in court. It explicitly said that “reporting companies need not comply with the CTA’s January 1, 2025, BOI reporting deadline”. 

If you have already filed the report, then there is no need to do anything. If you have not filed that report, then we recommend you not do so–no need to send in sensitive information to the federal government if you don’t have to. This is not a final ruling, it is possible that another court will ultimately find the law constitutional, but even then there will be plenty of time for business owners to file the form before enforcement begins. 

If you’re keeping track, this is the second federal mandate that was scheduled to go into effect January 1st that has been struck down by the courts in the last month. The other was the increase in salary required for an employee to be exempt from overtime payments. 

You can contact Eric@njgca.org for any questions. 

Tariffs to include oil and gas?

Last week, President-Elect Trump stated that he was planning to make good on his promises of increased tariffs, starting with a 25% tariff on all imports from Canada and Mexico. While some had hoped that even if he went forward with these plans, there would be an exemption for imported crude oil and refined petroleum products, a new report is explicitly saying there will be no exemptions. 

Many are still hoping that this is all effectively a bluff. Trump has tied these tariffs to a demand that these countries crack down on illegal immigration and drug smuggling coming over the border. It’s possible that in the weeks before he takes office he will force them to make some concessions, and then hold off on enacting these taxes. On the other hand, current law only allows the President to enact these tariffs without Congressional approval if they are tied to some kind of ’emergency’. He may only be bringing up other issues as a justification for the trade policy he genuinely wants. Given his many years of advocacy for protectionist trade policies, it’s possible that he has no intention of NOT following through on these tariffs. 

About a quarter of the crude oil used in the US per day comes from these countries, most of it from Canada specifically. 25% tariffs could work out to something like a 50¢ a gallon cost increase on that fuel, though it seems most of those imports are used in the Midwest, meaning they would expect to feel the brunt of the cost increase. That being said, oil is a global market, and that level of markup may cause the supply chain to shift as it becomes more profitable to move the oil and gas we rely on in NJ out to the Midwest, increasing costs somewhat for us here. 

Rack Averages

News Worth Knowing:

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Available Real Estate

Medford, New Jersey

We are periodically approached by members to post a classified ad in our communications, and are happy to help if possible.

Though we typically limit such listings to the “Available Real Estate” section below, for this week we are repositioning this classified entry to the main body of our newsletter in hopes of helping our member reach additional interested parties. 

Gas station for sale or lease.  103 Taunton Rd., Medford, NJ 08055

This is a functioning gas station at a signalized and very busy signalized corner of Medford, a higher-income community in south Jersey and near Philadelphia. 

The building has about 1250 sf and is situated in 0.45 acres.  It consists of the land, gas station, and a rented two-bay auto repair shop. Shop income is about $48,000 per year, and property taxes are about $8145 annually. 

The gas station has three underground tanks: 12,000 gallons for regular, 4,000 gallons for premium, and 4,000 gallons for diesel. Tanks are double-hull fiberglass from 2009, fully inspected and functional.  Gas is currently unbranded.  

The property has strong development prospects, so an owner-user can operate it until s/he decides to develop it – or not.   A tenant can rent only the gas function. Lease with option to buy is a possibility.  

Please call Theodore Vakrinos at 703-768-8580 landline, 703-7317302 cell;  or email at tvakrinos@gmail.com

Do you have an advertisement or classified listing you’d like to submit? 

Contact us at info@njgca.org with the details and your request. 

Cape Harbor Shell

**Price Reduction**

795 Route 109, Unit B, Lower Township, NJ, 08204

Contact: Jerry 609-425-8837 capeharborshell@comcast.net 

Station for Sale

Thriving High Profit Gas/Service Station close to Major Highway in Prime Location. 

This Exclusive Gas Station is the Sole Provider in the entire town, achieving a remarkable fuel profit of up to and sometimes over 1$ a gallon. Consistently selling 45,000 gallons monthly. Most fuel customers come from Highway so fuel prices do not have to be competitive. 

Also included with the Property is a Reputable High End Auto Repair Facility. Repair shop has all required Specialty and Diagnostic Tools for servicing mostly High End Vehicles. Advertising is no longer used do to an enormous Demand and large Customer Base. Repair Business has has potential for increased profitability and expansion, the business is open to experienced buyers for a possible partnership or profit sharing arrangement. Location is 1 out of 100. Fuel sales make 20-40K a month and repairs can do the same with the right operator. 

This one of a kind opportunity can include seller financing for those with High-Level Automotive or Gas Station Experience.

Contact Greg
908-291-7845

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