STATE OF NEW JERSEY
218th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2018 SESSION
Sponsored by:
Assemblyman DANIEL R. BENSON
District 14 (Mercer and Middlesex)
Assemblyman WAYNE P. DEANGELO
District 14 (Mercer and Middlesex)
Assemblyman CRAIG J. COUGHLIN
District 19 (Middlesex)
Assemblywoman ELIZABETH MAHER MUOIO
District 15 (Hunterdon and Mercer)
Co-Sponsored by:
Assemblyman Eustace
SYNOPSIS
Guarantees each municipality, at a minimum, Fiscal Year 2010 distribution of Energy Tax Receipts Property Tax Relief Aid in State Fiscal Year 2012.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act concerning Energy Tax Receipts Property Tax Relief Aid and amending P.L.1997, c.167.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 4 of P.L.1997, c.167 (C.52:27D-441) is amended to read as follows:
4. a. The annual appropriations act for each State fiscal year commencing with fiscal year 1998 shall appropriate and distribute during the fiscal year an amount not less than $740,000,000 or the amount determined pursuant to subsection e. of section 2 of P.L.1997, c.167 (C.52:27D-439)from the "Energy Tax Receipts Property Tax Relief Fund" pursuant to the provisions of section 2 of P.L.1997, c.167 (C.52:27D-439), for the purposes of that fund; provided, however, that a municipality that received aid in State Fiscal Year 2010 shall not receive a lesser amount of aid in State Fiscal Year 2012.
b. If the provisions of subsection a. of this section are not met on the effective date of an annual appropriations act for the State fiscal year, or if an amendment or supplement to an annual appropriations act for the State fiscal year should violate the provisions of subsection a. of this section, the Director of the Division of Budget and Accounting in the Department of the Treasury shall, not later than five days after the enactment of the annual appropriations act, or an amendment or supplement thereto, that violates the provisions of subsection a. of this section, certify to the Director of the Division of Taxation that the requirements of subsection a. of this section have not been met.
c. The Director of the
Division of Taxation shall, no later than five days after certification by the
Director of the Division of Budget and Accounting in the Department of the
Treasury pursuant to subsection b. of this section that the provisions of
subsection a. of this section have not been met or have been violated by an
amendment or supplement to the annual appropriations act, notify all taxpayers
that have filed a return under the Corporation Business Tax (1946), P.L.1945,
c.162 (C.54:10A-1 et seq.) during the previous calendar year, other than
taxpayers that are gas, electric, and gas and electric, or telecommunications
public utilities as defined pursuant to subsection (q) of section 4 of
P.L.1945, c.162 (C.54:10A-4) pursuant to the amendment to that section 4 made
in section 2 of P.L.1997, c.162, that the taxpayer shall have no liability
pursuant to the provisions of P.L.1945, c.162 for any corporation business tax
for the taxpayer's current privilege period,
notwithstanding any other provision of law to the contrary.
(cf: P.L.1997, c.167, s.4)
2. This act shall take effect immediately.
STATEMENT
This bill amends P.L.1997, c.167 the "Energy Tax Receipts Property Tax Relief Act," (C.52:27D-438 et seq.) in order to provide each municipality with a minimum level or Energy Tax Receipts (ETR) Property Tax Relief Aid for Fiscal Year 2012. The minimum amount of ETR Aid would be equal to the amount of ETR Aid distributed to each municipality in State Fiscal Year 2010. If the appropriation and distributions are not made by the State, the State will forfeit the collection of corporation business tax liabilities from all corporate taxpayers that are not public utilities for that tax year. P.L.2010, c.35, the Fiscal Year 2011 Appropriations Act, provided for a total distribution of $1.029 billion in State Aid.
In 1997, the State created the "Energy Tax Receipts Property Tax Receipts Property Tax Relief Fund" as a dedicated fund to replace the Gross Receipts and Franchise Tax. Certain revenues generated by the Corporation Business Tax, Sales and Use Tax, and the Transitional Energy Facilities Assessment are deposited into the fund and distributed to municipalities as a means of reducing the municipal property tax levy. ETR Aid is provided to municipalities as a replacement for property tax revenues that they are no longer authorized to collect.