Bill Text: NJ A1403 | 2012-2013 | Regular Session | Introduced
Bill Title: Reduces sales tax rate on certain sales and admission charges at places of amusement in urban enterprise zone areas and provides that sales tax revenue be for municipal purposes.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2012-03-12 - Reviewed by the Sales Tax Review Commission recommend to not enact [A1403 Detail]
Download: New_Jersey-2012-A1403-Introduced.html
STATE OF NEW JERSEY
215th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2012 SESSION
Sponsored by:
Assemblywoman BONNIE WATSON COLEMAN
District 15 (Hunterdon and Mercer)
SYNOPSIS
Reduces sales tax rate on certain sales and admission charges at places of amusement in urban enterprise zone areas and provides that sales tax revenue be for municipal purposes.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel
An Act reducing the rate of sales tax on certain retail sales and admission charges at places of amusement in urban enterprise zone areas and requiring that the tax so collected be remitted to municipalities for municipal purposes, supplementing P.L.1966, c.30 (C.54:32B-1 et seq.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. Receipts of retail sales, except retail sales of motor vehicles, of alcoholic beverages as defined in the "Alcoholic beverage tax law," R.S.54:41-1 et seq., cigarettes as defined in the "Cigarette Tax Act," P.L.1948, c.65 (C.54:40A-1 et seq.) and of manufacturing machinery, equipment or apparatus, and of energy; b. receipts from the sale of food and drink subject to taxation pursuant to subsection (c) of section 3 of the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-3); and c. admission charges subject to taxation pursuant to subsection (e) of section 3 of the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-3), at qualified places of amusement are exempt to the extent of 50% of the tax imposed under the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.). As used in this act, "qualified place of amusement" means a place of amusement as defined in subsection (t) of section 2 of P.L.1966, c.30 (C.54:32B-2) which was in operation within an area designated as an urban enterprise zone pursuant to the "New Jersey Urban Enterprise Zones Act," P.L.1983, c.303 (C.52:27H-60 et seq.), except that a "sexually oriented business," as defined in section 2 of P.L.1995, c.230 (C.2C:34-6), shall not be a qualified place of amusement. A qualified place of amusement shall remain a qualified place of amusement after the 20 year period of zone designation so long as the place of amusement continues in operation at the same location.
2. a. Notwithstanding any other law to the contrary, all sales tax revenues collected from the sales included in subsections a. through c. of section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill) at qualified places of amusement, the amount of which collections shall be certified by the Director of the Division of Taxation, shall be remitted to the chief finance officer of the municipality in which the qualified place of amusement is located to be used for municipal purposes.
b. The State Treasurer may deduct from amounts so collected prior to payment to the chief finance officer of the municipality an amount equal to that necessary to compensate the State for costs actually incurred in administering the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill).
3. Any vendor making a sale included in subsections a. through c. of section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill) at a qualified place of amusement and required to collect tax pursuant to the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.) shall register with the director in a manner prescribed by the director and file a return in such form and with such information as the director shall prescribe by rule or regulation as necessary to determine the amount to be remitted to the chief finance officer of the municipality pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill).
4. Any vendor making a sale included in subsections a. through c. of section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill) at a qualified place of amusement and required to register under P.L. , c. (C. ) (pending before the Legislature as this bill) shall, on or before the dates required pursuant to section 17 of P.L.1966, c.30 (C.54:32B-17), forward to the director the sales tax collected on the sales in the preceding return period and make and file a return for the preceding return period with the director on a form containing any information that the director shall prescribe by rule or regulation in order to determine the amount to be remitted to the chief finance officer of the municipality pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill).
5. The director shall promulgate those rules and regulations necessary to effectuate the provisions of this act pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.).
6. This act shall take effect immediately and apply to sales tax imposed on and after the first day of the third month following enactment.
STATEMENT
This bill reduces by one-half the sales tax rate on certain retail sales such as concession sales, food and drink and on admission charges at places of amusements in areas that have been designated as urban enterprise zones. This sales tax cut, from 6% to 3%, will apply to these sales at spectator sporting events, dramatic or musical performances, movies and other exhibitions for entertainment purposes that are held in places of amusement within these 27 areas designated within urban municipalities throughout the State. A "sexually oriented business" as defined in section 2 of P.L.1995, c.230 (C.2C:34-6) shall not qualify as a place of amusement under the provisions of the bill. The entire amount of sales tax revenue collected from this reduced rate sales tax will be paid to the municipalities in which the sales tax revenue is collected and will be available for general municipal purposes. The reduced rate tax and the municipal distribution of the tax revenue will continue after the expiration of the 20 year period of zone designation if the place of amusement continues to remain in operation in that location.
While the bill maintains the administrative duties of the New Jersey Division of Taxation for the collection and accounting of the tax revenue, it effectively makes the reduced rate sales tax at qualified places of amusement within urban enterprise zone areas a new municipal revenue source. This will provide municipalities that have urban enterprise zones that are successfully developing into mixed, commercial retail and entertainment service areas with a new source of revenue. This municipal revenue source can contribute toward paying the costs of municipal services that are often extended for events at entertainment, sports and amusement facilities.
