Bill Text: NJ A2120 | 2014-2015 | Regular Session | Introduced
Bill Title: Provides for sales tax exemption for advanced technology partial zero emission vehicles, imposes surcharge on certain automobiles, and deletes surcharge on certain automobiles.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2014-04-09 - Reviewed by the Sales Tax Review Commission Recommend to not enact [A2120 Detail]
Download: New_Jersey-2014-A2120-Introduced.html
Sponsored by:
Assemblyman REED GUSCIORA
District 15 (Hunterdon and Mercer)
SYNOPSIS
Provides for sales tax exemption for advanced technology partial zero emission vehicles, imposes surcharge on certain automobiles, and deletes surcharge on certain automobiles.
CURRENT VERSION OF TEXT
As introduced.
An Act providing a sales and use tax exemption for the sale of certain fuel efficient automobiles, and imposing a surcharge, and repealing a surcharge, on certain other automobiles, supplementing Title 39 of the Revised Statutes, and amending P.L.2003, c.266 and P.L.2006, c.39.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. (New section) a. In addition to the motor vehicle registration fees imposed pursuant to the provisions of chapter 3 of Title 39 of the Revised Statutes, the chief administrator shall, as a condition for the issuance and filing of a certificate of ownership pursuant to R.S.39:10-11, impose and collect an additional fee for any new passenger automobile that is certified as a low emission vehicle by the Commissioner of Environmental Protection pursuant to the provisions of P.L.2003, c.266 (C.26:2C-8.15 et al.). The additional fee shall also be imposed upon any new passenger automobile that is certified as an ultra low emission vehicle by the Commissioner of Environmental Protection pursuant to the provisions of P.L.2003, c.266 if the fee is determined pursuant to the provisions of paragraph (2) of subsection b. of this section.
b. The additional fee authorized under subsection a. of this section shall be determined annually by the State Treasurer by either: (1) dividing the estimated amount of the lost sales tax revenue for each fiscal year made pursuant to subsection d. of section 11 of P.L.2003, c.266 (C.54:32B-8.55) by the number of low emission vehicles sold in the preceding fiscal year; or (2) dividing the estimated amount of the lost sales tax revenue for each fiscal year made pursuant to subsection d. of section 11 of P.L.2003, c.266 by the number of low emission vehicles and ultra low emission vehicles sold in the preceding fiscal year.
c. The determination of the amount of the additional fee shall be made pursuant to paragraph (1) of subsection b. of this section if the additional fee would not exceed $1,000 per automobile and the determination of the amount of the additional fee shall be made pursuant to paragraph (2) of subsection b. of this section if the additional fee determined pursuant to paragraph (1) would be more than $1,000 per automobile. The fee imposed under this section shall be separately stated on any bill, receipt, invoice or similar document provided to the purchaser and shall not be subject to the retail sales taxes imposed under the provisions of the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.).
d. In the case of a new passenger automobile purchased or leased in New Jersey, the fee shall be collected by the person required to collect the retail sales tax imposed on that motor vehicle pursuant to subsection a. of section 3 of P.L.1966, c.30 (C.54:32B-3). That person shall be personally liable for collecting, reporting and remitting the fee in a manner prescribed by the chief administrator.
In the case of a new passenger automobile purchased or leased in a jurisdiction other than New Jersey, the fee and any forms required by the chief administrator shall be remitted directly to the chief administrator. If the seller or lessor of the new passenger automobile in that other jurisdiction is required to collect the retail sales tax imposed on that motor vehicle pursuant to subsection a. of section 3 of P.L.1966, c.30 (C.54:32B-3) and is authorized to apply for the issuance and filing of a certificate of ownership pursuant to R.S.39:10-11, that seller or lessor may collect, report and remit the fee in a manner prescribed by the chief administrator.
e. The chief administrator, in accordance with the provisions of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), shall promulgate rules and regulations to effectuate the purposes of this act.
2. Section 2 of P.L.2006, c.39 (C.39:3-8.4) is amended to read as follows:
2. a. In addition to the motor vehicle registration fees imposed pursuant to the provisions of chapter 3 of Title 39 of the Revised Statutes, the chief administrator shall, as a condition for the issuance and filing of a certificate of ownership pursuant to R.S.39:10-11, impose and collect an additional fee for any new passenger automobile having:
(1) A sales price or lease price of $45,000 or more, prior to any credit or offset of that sales price or lease price resulting from any rebate or trade-in which lowers the price of the passenger automobile to less than $45,000, or
(2) [An Environmental Protection Administration average fuel efficiency rating of less than 19 miles per gallon] (Deleted by amendment, P.L. , c. (pending before the Legislature as this bill)).
b. The additional fee authorized under subsection a. of this section shall be determined by multiplying the sales price or lease price for the new passenger automobile, prior to any credit or offset for any rebate or trade-in, by 0.4 percent. The fee imposed under this section shall be separately stated on any bill, receipt, invoice or similar document provided to the purchaser and shall not be subject to the retail sales taxes imposed under the provisions of the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.).
c. In the case of a new passenger automobile purchased or leased in New Jersey, the fee shall be collected by the person required to collect the retail sales tax imposed on that motor vehicle pursuant to subsection a. of section 3 of P.L.1966, c.30 (C.54:32B-3). That person shall be personally liable for collecting, reporting and remitting the fee in a manner prescribed by the chief administrator.
In the case of a new passenger automobile purchased or leased in a jurisdiction other than New Jersey, the fee and any forms required by the chief administrator shall be remitted directly to the chief administrator. If the seller or lessor of the new passenger automobile in that other jurisdiction is required to collect the retail sales tax imposed on that motor vehicle pursuant to subsection a. of section 3 of P.L.1966, c.30 (C.54:32B-3) and is authorized to apply for the issuance and filing of a certificate of ownership pursuant to R.S.39:10-11, that seller or lessor may collect, report and remit the fee in a manner prescribed by the chief administrator.
d. The fee authorized under this section shall not be imposed on the sale or lease of any new passenger automobile having a sale price or lease price, as the case may be, over $45,000 that:
(1) Has an Environmental Protection Administration average fuel efficiency rating of 40 or more miles per gallon; or
(2) Is certified as a zero emission vehicle by the Commissioner of Environmental Protection pursuant to the provisions of P.L.2003, c.266 (C.26:2C-8.15 et al.).
e. The chief administrator, in accordance with the provisions of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), shall promulgate rules and regulations to effectuate the purposes of this act.
(cf: P.L.2006, c.39, s.2)
3. Section 11 of P.L.2003, c.266 (C.54:32B-8.55) is amended to read as follows:
11. a. Receipts from sales of zero emission vehicles sold on or after the first day of the fourth month following the effective date of P.L.2003, c.266 (C.26:2C-8.15 et al.) are exempt from the tax imposed under the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.). Receipts from sales of advanced technology partial zero emission vehicles sold on or after the first day of the fourth month following the date of enactment of P.L. , c. (pending before the Legislature as this bill) are exempt from the tax imposed under the "Sales and Use Tax Act," P.L.1966, c.30.
b. The Commissioner of Environmental Protection shall certify to the State Treasurer the make and model of those motor vehicles that are zero emission vehicles or advanced technology partial zero emission vehicles and eligible for the exemption provided pursuant to subsection a. of this section.
c. As used in this section, "zero emission vehicle" means a vehicle certified as a zero emission vehicle pursuant to the California Air Resources Board zero emission vehicle standards for the applicable model year, but shall not include any other type of vehicle that may be delivered by a manufacturer for sale or lease to satisfy the zero emission vehicle requirement established by the California Air Resources Board in lieu of a vehicle that qualifies as a pure zero emission vehicle , and "advanced technology partial zero emission vehicle" means a vehicle certified as an advanced technology partial zero emission vehicle pursuant to the California Air Resources Board vehicle standards for the applicable model year.
d. The State Treasurer, in conjunction with the Chief Administrator of the Motor Vehicle Commission, shall estimate annually, no more than three months after the close of each fiscal year, the annual amount of lost sales tax revenue resulting from the provisions of subsection a. of this section.
(P.L.2003, c.266, s.11)
4. Section 3 of this act shall take effect immediately, and section 1 and section 2 shall take effect on January 1 next following the date of enactment, but the State Treasurer and the Chief Administrator of the Motor Vehicle Commission may take such anticipatory administrative action in advance thereof as shall be necessary for the implementation of the act.
STATEMENT
This bill would provide an exemption from the State sales and use tax for sales of advanced technology partial zero emission vehicles. Under current law, zero emission vehicles are already exempt from the State sales and use tax.
In addition, the bill would, beginning on January 1 following the date of enactment of the bill into law, impose a fee in addition to the existing motor vehicle registration fees, on new passenger automobiles that are classified as low emission vehicles or, under certain circumstances, ultra low emission vehicles. The fee would be determined annually, by dividing the estimated amount of lost sales tax revenue each fiscal year by the number of low emission vehicles sold in the preceding fiscal year. Should the fee exceed $1,000 per automobile using this method, then the fee would be determined by dividing the estimated amount of lost sales tax revenue each fiscal year by the number of low emission vehicles and ultra low emission vehicles sold in the preceding fiscal year. The bill would also eliminate the existing additional fee imposed on new passenger automobiles that have an average fuel efficiency rating of less than 19 miles per gallon. The new surcharge to be imposed and the elimination of the surcharge pursuant to the bill would take effect on January 1 next following the date of enactment of the bill into law.
