Bill Text: NJ A4286 | 2012-2013 | Regular Session | Introduced
Bill Title: Increases State hotel and motel occupancy fee revenues required to be annually appropriated to fund certain arts and cultural, historical, and tourism-related programs and activities.*
Spectrum: Partisan Bill (Democrat 5-0)
Status: (Introduced - Dead) 2013-11-18 - Reported out of Assembly Comm. with Amendments, 2nd Reading [A4286 Detail]
Download: New_Jersey-2012-A4286-Introduced.html
Sponsored by:
Assemblywoman VALERIE VAINIERI HUTTLE
District 37 (Bergen)
SYNOPSIS
Revises certain "poison pill" provisions in current law to increase State hotel and motel occupancy fee revenues annually appropriated to fund certain cultural, historical, and tourism-related programs and activities.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the dedication of revenues collected under the State hotel and motel occupancy fee, amending P.L.2003, c.114.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 2 of P.L.2003, c.114 (C.54:32D-2) is amended to read as follows:
2. a. The Director of the Division of Taxation shall collect and administer the fee imposed pursuant to section 1 of P.L.2003, c.114 (C.54:32D-1). The fees collected shall be deposited to the General Fund, and shall be allocated as follows:
(1) of the fees collected for occupancies during State Fiscal Year 2004: $16,000,000 shall be allocated for appropriation to the New Jersey State Council on the Arts for cultural projects; $2,700,000 shall be allocated for appropriation to the New Jersey Historical Commission for the purposes of subsection a. of section 3 of P.L.1999, c.131 (C.18A:73-22.3); $9,000,000 shall be allocated for appropriation to the [New Jersey Commerce and Economic Growth Commission] Division of Travel and Tourism in the Department of State for tourism advertising and promotion; and $500,000 shall be allocated for appropriation to the New Jersey Cultural Trust; and
(2) of the fees collected for occupancies during State Fiscal Year 2005 and thereafter: 22.68 percent shall be annually allocated for appropriation to the New Jersey State Council on the Arts for cultural projects, provided that the amount allocated shall not be less than $22,680,000; 3.84 percent shall be allocated for appropriation to the New Jersey Historical Commission for the purposes of subsection a. of section 3 of P.L.1999, c.131 (C.18A:73-22.3), provided that the amount allocated shall not be less than $3,840,000; 12.76 percent shall be allocated for appropriation to the [New Jersey Commerce and Economic Growth Commission] Division of Travel and Tourism in the Department of State for tourism advertising and promotion, provided that the amount allocated shall not be less than $12,760,000; and .72 percent shall be allocated for appropriation to the New Jersey Cultural Trust, provided that the amount allocated shall not be less than $720,000.
b. (1) In carrying out the
provisions of section 1 of P.L.2003, c.114 (C.54:32D-1) and this section, the
director shall have all of the powers and authority granted in P.L.1966, c.30
(C.54:32B-1 et seq.). The tax shall be filed and paid in a manner prescribed
by the Director of the Division of Taxation. The director shall promulgate
such rules and regulations as the director determines are necessary to
effectuate the provisions of section 1 of P.L.2003, c.114 (C.54:32D-1) and this
section.
(2) Each person required to collect the hotel and motel occupancy fee shall be personally liable for the fee imposed, collected, or required to be paid, collected, or remitted under section 1 of P.L.2003, c.114 (C.54:32D-1). Any such person shall have the same right in respect to collecting the fee from that person's customer or in respect to non-payment of the fee by the customer as if the fee were a part of the purchase price of the occupancy or rent, as the case may be, and payable at the same time; provided however, that the director shall be joined as a party in any action or proceeding brought to collect the fee.
For purposes of this paragraph, "person" includes: an individual, partnership, corporation, or an officer, director, stockholder, or employee of a corporation, or a member or employee of a partnership, who as such officer, director, stockholder, employee, or member is under the duty to perform the act in respect of which the violation occurs.
c. (1) The annual appropriations act for each State Fiscal Year, commencing with fiscal year 2005 but before fiscal year 2015, shall appropriate and distribute during that fiscal year amounts not less than the amounts otherwise specified for State Fiscal Year 2004 in paragraph (1) of subsection a. of this section for the purposes specified in paragraph (1) of subsection a. of this section.
(2) The annual appropriations act for each State Fiscal Year, commencing with fiscal year 2015, shall appropriate and distribute during that fiscal year amounts not less than the amounts otherwise specified for State Fiscal Year 2005 and thereafter in paragraph (2) of subsection a. of this section for the purposes specified in paragraph (2) of subsection a. of this section.
d. If the provisions of subsection c. 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 c. 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 c. of this section, certify to the Director of the Division of Taxation that the requirements of subsection c. of this section have not been met.
e. 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 d. of this section that the provisions of subsection c. of this section have not been met or have been violated by an amendment or supplement to the annual appropriations act, notify each person required to collect tax of the certification and that the fee imposed pursuant to section 1 of P.L.2003, c.114 (C.54:32D-1) shall no longer be paid or collected.
(cf: P.L.2007, c.102, s.4)
2. This act shall take effect immediately.
STATEMENT
This bill revises certain "poison pill" provisions in current law to increase the amount of State revenues required to be annually appropriated to fund certain cultural, historical, and tourism-related programs and activities.
Under current law, the State imposes a hotel and motel occupancy fee that applies to the rent for certain hotel occupancies in this State. The law imposing the fee requires a minimum amount of revenue collected from the fee to be annually allocated for appropriation to fund cultural project grants through the New Jersey State Council on the Arts, New Jersey Historical Commission grants, tourism advertising and promotion through the Division of Travel and Tourism in the Department of State, and the New Jersey Cultural Trust.
For the fees collected from occupancies occurring during State fiscal year 2004, current law provides that at a minimum $16 million was required to be allocated for appropriation to the Arts Council; $2.7 million was required to be allocated for appropriation to the Historical Commission; $9 million was required to be allocated for appropriation for tourism advertising and promotion; and $500,000 was required to be allocated for appropriation to the Cultural Trust.
For the fees collected from occupancies occurring during State fiscal year 2005 and thereafter, the law increased the minimum amounts required to be allocated for appropriation to: 22.68% of the fees collected for the Arts Council, provided the amount is not less than $22.68 million; 3.84% of the fees collected for the Historical Commission, provided the amount is not less than $3.84 million; 12.76% of the fees collected for tourism advertising and promotion, provided the amount is not less than $12.76 million; and 0.72% of the fees collected for the Cultural Trust, provided the amount is not less than $720,000.
While current law requires the State to appropriate funds to these entities at the amounts established for State fiscal year 2005 and thereafter, the Legislature has appropriated the lesser amounts established for State fiscal year 2004 in recent years. This is due to a combination of declining revenues during the recession, and the fact that the annual appropriations act is permitted to suspend the law's explicit dedication of revenues.
However, it also is because the law establishing the State hotel and motel occupancy fee includes a "poison pill" provision that is tied to the amounts established for State fiscal year 2004. Under current law, if the minimum amounts established for State fiscal year 2004 are not appropriated in any fiscal year, then no later than 10 days after the enactment of the annual appropriations act the Director of the Division of Taxation in the Department of the Treasury is required to notify each person required to collect the State fee that the fee is no longer required to be paid or collected.
This bill changes that poison pill provision to require the amounts established for State fiscal year 2005 and thereafter be appropriated to fund cultural project grants through the Arts Council, New Jersey Historical Commission grants, tourism advertising and promotion through the Division of Travel and Tourism in the Department of State, and the New Jersey Cultural Trust. The bill provides that if the minimum amounts established for State fiscal year 2005 and thereafter are not appropriated in any fiscal year (commencing with State fiscal year 2015), then no later than 10 days after the enactment of the annual appropriations act the Director of the Division of Taxation is required to notify each person required to collect the State fee that the fee is no longer required to be paid or collected.
The bill takes effect immediately upon enactment.
