Bill Text: NJ A5227 | 2026-2027 | Regular Session | Introduced
Bill Title: Imposes temporary surtax on taxpayers that receive certain tariff refunds; dedicates surtax revenues towards consumer price relief.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Introduced) 2026-06-08 - Introduced, Referred to Assembly Consumer Affairs Committee [A5227 Detail]
Download: New_Jersey-2026-A5227-Introduced.html
Sponsored by:
Assemblyman BALVIR SINGH
District 7 (Burlington)
SYNOPSIS
Imposes temporary surtax on taxpayers that receive certain tariff refunds; dedicates surtax revenues towards consumer price relief.
CURRENT VERSION OF TEXT
As introduced.
An Act imposing a temporary surtax on taxpayers that receive certain tariff refunds and supplementing Title 54 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. For the purposes of this section:
"Apportioned tariff refund" means the amount of the qualified tariff refunds received by a taxpayer during the privilege period, multiplied by the taxpayer's allocation factor for the privilege period, as determined pursuant to section 6 of P.L.1945, c.162 (C.54:10A-6).
"Director" means the Director of the Division of Taxation in the Department of the Treasury.
"Qualified tariff" and "tariff" mean a tariff paid by a taxpayer that was imposed by the President of the United States pursuant to the federal International Emergency Economic Powers Act, 50 U.S.C. s.1701 et seq., through the issuance of any of the following:
Presidential Proclamation Number 10886, 90 Fed. Reg. 8327;
Executive Order No. 14193, 90 Fed. Reg. 9113;
Executive Order No. 14194, 90 Fed. Reg. 9117;
Executive Order No. 14195, 90 Fed. Reg. 9121; or
Executive Order No. 14257, 90 Fed. Reg. 15041.
"Qualified tariff refund" and "refund" mean a refund that is required to be issued by the United States Customs and Border Protection by court order, through a process established by that agency, for the amount of a qualified tariff, plus interest, except not including any refund received by a taxpayer before the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill).
"Taxpayer" means any business entity or combined group that is subject to tax under the Corporation Business Tax (1945), P.L.1945, c.162 (C.54:10A-1 et seq.).
b. In addition to the tax paid by each taxpayer pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5), for privilege periods beginning on or after January 1, 2026, but before January 1, 2031, a taxpayer shall be assessed and shall pay a surtax equal to 90 percent of the amount of the apportioned tariff refund received by the taxpayer during the privilege period. Notwithstanding the provisions of any other law to the contrary, no credits shall be allowed against the surtax liability computed under this section, except for credits for installment payments, estimated payments made with a request for an extension of time for filing a return, or overpayments from prior privilege periods.
c. The surtax shall be due and payable in accordance with section 15 of P.L.1945, c.162 (C.54:10A-15), and the surtax shall be administered pursuant to the provisions of P.L.1945, c.162 (C.54:10A-1 et seq.), except that the director may require each taxpayer to submit such information and documentation as may be necessary to verify:
(1) the total amount of the qualified tariffs paid by the taxpayer; and
(2) the total amount of qualified tariff refunds received by the taxpayer.
d. There is established a special, nonlapsing account within the General Fund, to be known as the "New Jersey Consumer Tariff Relief Fund," into which all revenues generated from the surtax imposed pursuant to this section shall be credited. The monies in the account shall be dedicated and annually appropriated by the Legislature for the following purposes:
(1) the provision of grants, through a competitive application process, to small businesses impacted by price increases related to the imposition of qualified tariffs;
(2) the issuance of rebates, with priority given to low- and moderate-income households, to alleviate the impact of price increases related to the imposition of qualified tariffs; and
(3) the enforcement of consumer protection laws through appropriate State agencies.
2. The Director of the Division of Taxation in the Department of the Treasury shall, in accordance with the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), adopt rules and regulations as necessary to implement the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill).
3. This act shall take effect immediately and shall apply to qualified tariff refunds issued on or after the effective date.
STATEMENT
This bill imposes a temporary five-year surtax on certain tariff refunds received by corporation business taxpayers and dedicates the revenues collected from the surtax towards consumer price relief.
Specifically, the surtax would be equal to 90 percent of the apportioned tariff refunds received by a taxpayer during each year. The surtax would be imposed in addition to the corporation business tax for privilege periods beginning on or after January 1, 2026 but before January 1, 2030.
The bill defines an "apportioned tariff refund" as the amount of the qualified tariff refunds received by a taxpayer during the privilege period, multiplied by the taxpayer's allocation factor for the privilege period. A "qualified tariff refund" would include any refund that is required to be issued by the United States Customs and Border Protection by court order, through a process established by the agency, for the amount of a qualified tariff, plus interest, and excluding any refunds received before the date of the bill's enactment. The bill also defines a "qualified tariff" as a tariff paid by a taxpayer that was imposed by the President of the United States pursuant to the federal International Emergency Economic Powers Act in certain cases with the justification of addressing certain foreign threats related to the flow of illegal drugs and trade deficits.
The bill also establishes a special, nonlapsing account within the General Fund to be known as the "New Jersey Consumer Tariff Relief Fund," into which all revenues generated from the surtax imposed pursuant to the bill would be credited. The monies in the account are required to be dedicated and annually appropriated by the Legislature for any of the following purposes:
(1) the provision of grants, through a competitive application process, to small businesses impacted by price increases related to the imposition of qualified tariffs;
(2) the issuance of rebates, with priority given to low- and moderate-income households, to alleviate the impact of price increases related to the imposition of qualified tariffs; and
(3) the enforcement of consumer protection laws through appropriate State agencies.
