New Jersey-2012-A4395-Introduced

An Act concerning the allocation of revenues collected under the State hotel and motel occupancy fee above those anticipated, 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, 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, that appropriates and distributes during that fiscal year amounts not less than the amounts otherwise specified for State Fiscal Year 2004 and thereafter in paragraph (1) of subsection a. of this section for the purposes specified in paragraph (1) of subsection a. of this section, shall, in addition, appropriate and distribute in any such State Fiscal Year, an amount equal to 50% of the revenue from fees collected for occupancies during the preceding State Fiscal Year that are in excess of the revenue certified upon enactment of the annual appropriations act for that preceding State Fiscal Year as anticipated to be collected from such fees, which amount shall be distributed in proportion to the amounts and for the purposes specified in paragraph (1) of subsection a. of this section.

d. If the provisions of paragraph (1) 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 paragraph (1) 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 paragraph (1) 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 paragraph (1) 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 requires the appropriation of 50% of the revenues collected in excess of the amount anticipated for a prior fiscal year from the State hotel and motel occupancy fee, to be distributed for an additional proportional allocation among 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.

Revenues from the fees collected from occupancies occurring during a State fiscal year, beginning with 2004, were set at the following minimum amounts to be allocated for annual appropriation: $16 million to the Arts Council; $2.7 million to the Historical Commission; $9 million for tourism advertising and promotion; and $500,000 to the Cultural Trust.

If these minimum amounts are appropriated during a State fiscal year that immediately follows a State fiscal year in which the total State revenue collected from this fee exceeds the amount certified as anticipated from this fee, this bill requires an additional 50% of the excess collections be proportionally allocated and appropriated for these same programs and activities in that following State fiscal year.