Bill Text: NJ ACR136 | 2012-2013 | Regular Session | Introduced

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Bill Title: Proposes constitutional amendment increasing gross income tax rate on income over $1 million for any tax year in which State budget does not appropriate full State funding of State's public school funding formula.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced - Dead) 2012-05-10 - Introduced, Referred to Assembly Budget Committee [ACR136 Detail]

Download: New_Jersey-2012-ACR136-Introduced.html

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ASSEMBLY CONCURRENT RESOLUTION No. 136

STATE OF NEW JERSEY

215th LEGISLATURE

 

INTRODUCED MAY 10, 2012

 

 

Sponsored by:

Assemblywoman  BONNIE WATSON COLEMAN

District 15 (Hunterdon and Mercer)

Assemblyman  TROY SINGLETON

District 7 (Burlington)

 

 

 

 

SYNOPSIS

     Proposes constitutional amendment increasing gross income tax rate on income over $1 million for any tax year in which State budget does not appropriate full State funding of State's public school funding formula.

 

CURRENT VERSION OF TEXT

     As introduced.

  

A Concurrent Resolution proposing to amend Article VIII, Section IV of the Constitution of New Jersey by adding a new paragraph.

 

     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 IV by adding a new paragraph 4 to read as follows:

     4.  If the State government fails to fully fund from State appropriations made in the State annual general appropriation law the State's public school funding formula in order to provide for the maintenance and support of a thorough and efficient system of free public schools as is required pursuant to Article VIII, Section IV, paragraph 1 of this constitution, there shall be imposed 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, 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 the taxable year beginning during the calendar year in which that State annual general appropriation law is enacted, a rate of tax on a taxpayer's taxable income in excess of $1,000,000 that shall be 10.75%.

 

     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 PERSONAL INCOME TAX RATE ON INCOME OVER $1 MILLION AT 10.75% IF STATE BUDGET DOES NOT FULLY FUND PUBLIC SCHOOL FUNDING FORMULA
	YES	Do you approve amending the Constitution to increase the State personal income tax rate on annual income over $1 million if the State budget act does not fully fund the public school funding formula?     The tax rate would increase from a current rate of 8.97% to 10.75%.  The higher rate will be for the tax year in which a new State budget act does not include full public school funding.
		INTERPRETIVE STATEMENT
	NO	This amendment requires a personal income tax rate increase when the State does not provide full funding of the public school funding formula.  The tax rate would increase from the current rate of 8.97% to 10.75%, only on income over $1 million.     A "yes" vote would amend the Constitution to trigger an income tax rate increase on income above $1 million in the tax year in which a new State budget act does not include full funding.     A "no" vote would leave the Constitution unchanged.

 

 

STATEMENT

 

     This concurrent resolution proposes a constitutional amendment that will impose a gross income tax rate increase when the State does not provide full funding of the public school funding formula.  The tax rate would increase from the current rate of 8.97% to 10.75%, only on income over $1 million.

     A "yes" vote would amend the Constitution to trigger an income tax rate increase on income above $1 million in the tax year in which a new State budget act does not include full funding.  A "no" vote would leave the Constitution unchanged.