Bill Text: NJ ACR112 | 2012-2013 | Regular Session | Introduced

New Jersey Assembly Concurrent Resolution 112 (Prior Session Legislation)

Introduced

Bill Title: Amends State Constitution to set gross income tax rate on income over $1 million in 2013 and thereafter; dedicates revenue therefrom for services for senior citizens and for homestead rebates and credits; requires annual appropriation of at least $1 billion of certain revenue for services for senior citizens and for homestead rebates and credits.

Sponsorship: Partisan Bill (Democrat 1)

Status: (Introduced - Dead) 2012-02-06 - Introduced, Referred to Assembly Budget Committee [ACR112 Detail]

Download: New_Jersey-2012-ACR112-Introduced.html

ASSEMBLY CONCURRENT RESOLUTION No. 112

STATE OF NEW JERSEY

215th LEGISLATURE

INTRODUCED FEBRUARY 6, 2012

Sponsored by:

Assemblyman GORDON M. JOHNSON

District 37 (Bergen)

SYNOPSIS

Amends State Constitution to set gross income tax rate on income over $1 million in 2013 and thereafter; dedicates revenue therefrom for services for senior citizens and for homestead rebates and credits; requires annual appropriation of at least $1 billion of certain revenue for services for senior citizens and for homestead rebates and credits.

CURRENT VERSION OF TEXT

As introduced.

A Concurrent Resolution proposing to amend Article VIII, Section I, paragraph 7 of the Constitution of the State of New Jersey.

Be It Resolved by the General Assembly of the State of New Jersey (the Senate concurring):

1. The following proposed amendment to the Constitution of the State of New Jersey is agreed to:

PROPOSED AMENDMENT

Amend Article VIII, Section I, paragraph 7 to read as follows:

7. a. No tax shall be levied on personal incomes of individuals, estates and trusts of this State unless the entire net receipts therefrom shall be received into the treasury, placed in a perpetual fund designated the Property Tax Relief and Senior Citizens Services Fund and be annually appropriated, pursuant to formulas established from time to time by the Legislature, to the several counties, municipalities and school districts of this State [exclusively] for the purpose of reducing or offsetting property taxes, and be annually appropriated from a special account therein established pursuant to subparagraph c. of this paragraph. In no event, however, shall a tax so levied on personal incomes be levied on payments received under the federal Social Security Act, the federal Railroad Retirement Act, or any federal law which substantially reenacts the provisions of either of those laws.

b. There shall be annually credited from the General Fund and placed in a special account in the perpetual Property Tax Relief and Senior Citizens Services Fund established pursuant to this paragraph, which account shall be designated the Property Tax Reform Account, an amount equal to the annual revenue derived from a tax rate of 0.5% imposed under the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.), as amended and supplemented, or any other subsequent law of similar effect, which amount shall be appropriated annually by the Legislature exclusively for the purpose of property tax reform.

c. There shall be annually credited and placed in a special account in the perpetual Property Tax Relief and Senior Citizens Services Fund established pursuant to this paragraph, which account shall be designated the Senior Citizens Services and Homestead Rebate and Credit Account, the increase in annual revenue attributable solely to the tax rate change, imposed pursuant to subparagraph d. of this paragraph, under the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., or other successor State taxes levied on personal incomes of individuals, estates and trusts of this State pursuant to this paragraph, which amount shall be appropriated annually by the Legislature exclusively for the purpose of providing services for eligible senior citizens and for the purpose of paying for homestead rebates and credits.

d. Under the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., or other successor State taxes levied on personal incomes of individuals, estates and trusts of this State pursuant to this paragraph, but notwithstanding such part of the taxable income tables and tax rates provided in N.J.S.54A:2-1 or any other provision of law to the contrary, for taxable years beginning on or after January 1, 2013, the rate of tax on a taxpayer's taxable income in excess of $1,000,000 shall be 10.75%.

e. For each State fiscal year commencing on or after July 1, 2013, an amount not less than $1,000,000,000 from the increase in revenue attributable solely to the tax rate change imposed pursuant to the provisions of subparagraph d. of this paragraph, and from other revenue placed in the Property Tax Relief and Senior Citizens Services Fund, shall be appropriated annually by the Legislature for the purpose of providing services for eligible senior citizens and for the purpose of paying for homestead rebates and credits.

(cf: Art. VIII, Sec. I, par. 7 amended effective December 7, 2006)

2. When this proposed amendment to the Constitution is finally agreed to pursuant to Article IX, paragraph 1 of the Constitution, it shall be submitted to the people at the next general election occurring more than three months after the final agreement and shall be published at least once in at least one newspaper of each county designated by the President of the Senate, the Speaker of the General Assembly and the Secretary of State, not less than three months prior to the general election.

3. This proposed amendment to the Constitution shall be submitted to the people at that election in the following manner and form:

There shall be printed on each official ballot to be used at the general election, the following:

a. In every municipality in which voting machines are not used, a legend which shall immediately precede the question as follows:

If you favor the proposition printed below make a cross (X), plus (+), or check (a) in the square opposite the word "Yes." If you are opposed thereto make a cross (X), plus (+) or check (a) in the square opposite the word "No."

b. In every municipality the following question:

CONSTITUTIONAL AMENDMENT TO SET GROSS INCOME TAX RATE, STARTING IN 2013, ON ANNUAL INCOME OVER $1 MILLION AT 10.75%; DEDICATES INCREASED REVENUE THEREFROM FOR SERVICES FOR SENIOR CITIZENS AND FOR HOMESTEAD REBATES AND CREDITS, AND REQUIRES ANNUAL APPROPRIATION OF NOT LESS THAN $1 BILLION FOR SERVICES FOR SENIOR CITIZENS AND FOR HOMESTEAD REBATES AND CREDITS

YES

Shall the amendment to Article VIII, Section I, paragraph 7 of the State Constitution, agreed to by the Legislature, that sets a gross income tax rate of 10.75%, for taxable years beginning on or after January 1, 2013, on a taxpayer's taxable income in excess of $1 million per year, dedicates for services for eligible senior citizens and for homestead rebates and credits the increase in annual gross income tax revenue attributable solely to that tax rate change, and requires an annual appropriation of an amount not less than $1 billion in each State fiscal year commencing on or after July 1, 2013, from the increase in revenue attributable solely to the tax rate change imposed pursuant to this amendment and from other revenue placed in the redesignated Property Tax Relief and Senior Citizens Services Fund, for providing services for eligible senior citizens and for the purpose of paying for homestead rebates and credits, be approved?

INTERPRETIVE STATEMENT

This proposed constitutional amendment sets a gross income tax rate of 10.75% on a taxpayer's annual income of over $1 million. This new rate will start in taxable year 2013 and continue in future years. The current maximum rate is not set by the Constitution. It is set by statute at 8.97% and applies to income over $500,000 per year. The amendment dedicates for services for senior citizens and for homestead rebates and credits the increase in annual gross income tax revenue attributable solely to the tax rate change.

The amendment also requires an annual appropriation of at least $1 billion, beginning with the Fiscal Year 2013-2014 State budget, to pay for services for senior citizens and for homestead rebates and credits. The amendment requires this appropriation to be made from the increased tax revenue from the new 10.75% tax rate on income over $1 million per year and from other tax revenue that is placed in the Property Tax Relief and Senior Citizens Services Fund.

STATEMENT

This concurrent resolution proposes a constitutional amendment that sets a gross income tax rate of 10.75% on a taxpayer's annual income of over $1 million. This new rate will start in taxable year 2013 and continue in future years. The current maximum rate is not set by the Constitution. It is set by statute at 8.97% and applies to income over $500,000 per year. The amendment dedicates for services for senior citizens and for homestead rebates and credits the increase in annual gross income tax revenue attributable solely to the tax rate change.