Bill Text: NJ A519 | 2010-2011 | Regular Session | Introduced
Bill Title: Expands "Urban Transit Hub Tax Credit" program to municipalities with casino gaming.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Introduced - Dead) 2010-01-12 - Introduced, Referred to Assembly Commerce and Economic Development Committee [A519 Detail]
Download: New_Jersey-2010-A519-Introduced.html
STATE OF NEW JERSEY
214th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2010 SESSION
Sponsored by:
Assemblyman JOHN F. AMODEO
District 2 (Atlantic)
Assemblyman VINCENT J. POLISTINA
District 2 (Atlantic)
SYNOPSIS
Expands "Urban Transit Hub Tax Credit" program to municipalities with casino gaming.
CURRENT VERSION OF TEXT
As introduced.
An Act allowing certain business tax credits in municipalities where casino gaming is authorized, and amending P.L.2007, c.346.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 2 of P.L.2007, c.346 (C.34:1B-208) is amended to read as follows:
2. As used in this act:
"Affiliate" means an entity that directly or indirectly controls, is under common control with, or is controlled by the business. Control exists in all cases in which the entity is a member of a controlled group of corporations as defined pursuant to section 1563 of the Internal Revenue Code of 1986 (26 U.S.C.s.1563) or the entity is an organization in a group of organizations under common control as defined pursuant to subsection (b) or (c) of section 414 of the Internal Revenue Code of 1986 (26 U.S.C.s.414). A taxpayer may establish by clear and convincing evidence, as determined by the Director of the Division of Taxation in the Department of the Treasury, that control exists in situations involving lesser percentages of ownership than required by those statutes. An affiliate of a business may contribute to meeting either the qualified investment or full-time employee requirements of a business that applies for a credit under section 3 of P.L.2007, c.346 (C.34:1B-209).
"Authority" means the New Jersey Economic Development Authority established by section 4 of P.L.1974, c.80 (C.34:1B-4).
"Business" means a corporation that is subject to the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5), a corporation that is subject to the tax imposed pursuant to sections 2 and 3 of P.L.1945, c.132 (C.54:18A-2 and 54:18A-3), section 1 of P.L.1950, c.231 (C.17:32-15) or N.J.S.17B:23-5, or is a partnership, an S corporation, or a limited liability corporation. A business shall include an affiliate of the business if that business applies for a credit based upon any capital investment made by or full-time employees of an affiliate.
"Capital investment" in a qualified business facility means expenses incurred after, but before the end of the eighth year after, the effective date of P.L.2007, c.346 (C.34:1B-207 et seq.) for: a. the site preparation and construction, repair, renovation, improvement, equipping, or furnishing of a building, structure, facility or improvement to real property; and b. obtaining and installing furnishings and machinery, apparatus or equipment for the operation of a business in a building, structure, facility or improvement to real property.
"Eligible municipality" means a municipality: (1) which qualifies for State aid pursuant to P.L.1978, c.14 (C.52:27D-178 et seq.) or which was continued to be a qualified municipality thereunder pursuant to P.L.2007, c.111[;] and (2) in which 30 percent or more of the value of real property was exempt from local property taxation during tax year 2006; or is a municipality in which casino gaming is authorized. The requirement of a 30 or more percentage of exempt property, set forth in (2) above, shall be calculated by dividing the total exempt value by the sum of the net valuation which is taxable and that which is tax exempt.
"Full-time employee" means a person employed by the business for consideration for at least 35 hours a week, or who renders any other standard of service generally accepted by custom or practice as full-time employment, or a person who is employed by a professional employer organization pursuant to an employee leasing agreement between the business and the professional employer organization, in accordance with P.L.2001, c.260 (C.34:8-67 et seq.) for at least 35 hours a week, or who renders any other standard of service generally accepted by custom or practice as full-time employment, and whose wages are subject to withholding as provided in the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq. or an employee who is a resident of another State but whose income is not subject to the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq. or who is a partner of a business who works for the partnership for at least 35 hours a week, or who renders any other standard of service generally accepted by custom or practice as full-time employment, and whose distributive share of income, gain, loss, or deduction, or whose guaranteed payments, or any combination thereof, is subject to the payment of estimated taxes, as provided in the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq. "Full-time employee" shall not include any person who works as an independent contractor or on a consulting basis for the business.
"Partnership" means an entity classified as a partnership for federal income tax purposes.
"Professional employer organization" means an employee leasing company registered with the Department of Labor and Workforce Development pursuant to P.L.2001, c.260 (C.34:8-67 et seq.).
"Qualified business facility" means any building, complex of buildings or structural components of buildings, and all machinery and equipment located within a designated urban transit hub in an eligible municipality, used in connection with the operation of a business.
"Residential unit" means a residential dwelling unit such as a rental apartment, a condominium or cooperative unit, a hotel room, or a dormitory room.
"Urban transit hub" means:
a. property located within a 1/2 mile radius surrounding the mid point of a New Jersey Transit Corporation, Port Authority Transit Corporation or Port Authority Trans-Hudson Corporation rail station platform area, including all light rail stations, and property located within a one mile radius of the mid point of the platform area of such a rail station if the property is in a qualified municipality under the "Municipal Rehabilitation and Economic Recovery Act," P.L.2002, c.43 (C.52:27BBB-1 et seq.);
b. property located within a 1/2 mile radius surrounding the mid point of one of up to two underground light rail stations' platform areas that are most proximate to an interstate rail station;
c. property adjacent to, or connected by rail spur to, a freight rail line if the business utilizes that freight line for loading and unloading freight cars on trains;
which property shall have been specifically delineated by the authority pursuant to subsection e. of section 3 of P.L.2007, c.346 (C.34:1B-209).
A property which is partially included within the radius shall only be considered part of the hub if over 50 percent of its land area falls within the radius. "Rail station" shall not include any rail station located at an international airport.
(c.f.: P.L.2009, c.90, s.31)
2. This act shall take effect immediately.
STATEMENT
This bill amends the "Urban Transit Hub Tax Credit" program to include municipalities in which casino gaming is authorized. This program provides tax credits to business located near an urban transit hub with the goal of attracting economic development to economically depressed areas, which often do not have the property tax base necessary to support much needed municipal services.
Currently, Atlantic City is the only municipality in which casino gaming is authorized and it is not eligible to participate in this important program. The current economic downturn has resulted in a significant reduction in earnings for casinos across the United States, and there has been a corresponding loss of revenue for municipalities which rely on the casinos for substantial tax revenue. New Jersey casinos are not immune from the current recession, and coupled with increased competition due to legalized gaming in nearby states, it is possible that two of New Jersey's casinos may close in the near future.
In the event a casino closures occurs, the effect on a municipality that is heavily reliant on casino revenue for municipal budgeting purposes would be devastating. It is vital that the State be proactive in protecting the tax base in municipalities that rely on casino revenue and provide incentives for business to operate in these areas.
