This Day in History: 1927-04-04
Motor Vehicle Commissioner Dill dismissed the possibility of a legal challenge to New Jersey’s first gasoline tax. “I am proceeding on the assumption that the gasoline tax law just passed will not be assailed in the courts, but that if it is, it will be upheld. The tax will go into effect July 13th.” The two cents a gallon tax was to be collected from the refineries, not from service station owners or directly from the consumers. Most assumed that the 40 or 50 refineries would pass the cost on to the motorists, but there was some evidence that the industry might assume the tax to keep gas prices low. (Bristow)