On December 2, the New Jersey Department of the Treasury announced a 2.6-cent-per-gallon increase to the state gas tax starting January 1, 2025. This adjustment follows the 2024 legislation (Chapter 7) which raises the State's Highway Fuel Cap incrementally from Fiscal Year 2025 to Fiscal Year 2029.

Under the formula outlined in Chapter 7, the Petroleum Products Gross Receipt Tax (PPGRT) rate will increase on January 1, 2025 from 31.8 cents to 34.4 cents for gasoline and from 35.8 cents to 38.4 cents for diesel fuel. When combined with the Motor Fuels Tax, which is fixed at 10.5 cents for gasoline and 13.5 cents for diesel fuel, the total tax rates that motorists will pay for gasoline and diesel fuel will be 44.9 cents and 51.9 cents, respectively.

 To read the Treasury's press release, click here.

Minimum Wage Increase Effective January 1, 2025

New Jersey's minimum wage will increase to $15.49 per hour for most workers starting January 1, 2025, following the first annual inflation adjustment. The current $15.13 minimum wage was adjusted due to high inflation in 2023.

Seasonal businesses and small employers (with five or fewer workers) will see an 80-cent increase to $14.53 per hour, while farm workers’ wages will rise from $12.81 to $13.40. These sectors are on track to reach a $15 minimum wage by 2028 and 2030, respectively.

Tipped workers’ minimum wage will increase by 36 cents to $5.62 per hour, with a maximum tip credit of $9.87, ensuring they earn no less than $15.49 per hour under state law. Currently, New Jersey has the fourth-highest minimum wage in the U.S., behind California, Washington, and Connecticut.

For more information on the state minimum wage, click here. 

Governor Murphy Signs Outdoor Dining Legislation

On November 25, Governor Phil Murphy signed S3608/A4866 Freiman/Sarlo/Polistina into law, making outdoor dining permissions permanent for restaurants and certain alcoholic beverage retailers and manufacturers. The legislation will authorize continued use of fixtures such as tents, canopies, umbrellas, tables, and chairs for outdoor dining, making permanent a law that was signed by the Governor in February of 2021.

Additionally, under the new law, the holder of a temporary expansion permit issued by the New Jersey Division of Alcoholic Beverage Control (ABC) may have their temporary permit converted to a permanent permit, which is renewable annually and is issued at the approval of local officials.