Bill Text: NJ S2447 | 2022-2023 | Regular Session | Introduced
Bill Title: Provides 60-day reduction in highway fuel taxes; makes appropriation.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2022-05-09 - Introduced in the Senate, Referred to Senate Transportation Committee [S2447 Detail]
Download: New_Jersey-2022-S2447-Introduced.html
Sponsored by:
Senator SHIRLEY K. TURNER
District 15 (Hunterdon and Mercer)
SYNOPSIS
Provides 60-day reduction in highway fuel taxes; makes appropriation.
CURRENT VERSION OF TEXT
As introduced.
An Act providing temporary reduction in highway fuel taxes and making an appropriation.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. (1) Notwithstanding any provision of the "Petroleum Products Gross Receipts Tax Act," P.L.1990, c.42 (C.54:15B-1 et seq.) to the contrary, including the rate adjustment provisions set forth in subsection c. of section 3 of P.L.1990, c.42 (C.54:15B-3), during the period provided in subsection b. of this section, the rate of tax imposed on highway fuel under paragraph (1) of subsection a. of section 3 of P.L.1990, c.42 (C.54:15B-3) shall equal 2.75 percent of the gross receipts derived from the first sale of highway fuel within the State.
(2) Notwithstanding any provision of the "Petroleum Products Gross Receipts Tax Act," P.L.1990, c.42 (C.54:15B-1 et seq.) to the contrary, during the period provided in subsection b. of this section, no tax shall be imposed on highway fuel under paragraph (2) of subsection a. of section 3 of P.L.1990, c.42 (C.54:15B-3).
b. The taxes imposed on highway fuel under paragraphs (1) and (2) of subsection a. of section 3 of P.L.1990, c.42 (C.54:15B-3) shall be reduced or suspended, as provided under subsection a. of this section, beginning on the 10th calendar day following the effective date of this act and concluding on the 70th calendar day following the effective date of this act.
c. The benefit of the reduction of taxation provided under this section shall be passed on to the consumers of highway fuel, and the retail price of highway fuel sold in this State shall be reduced to reflect the reduction of taxation.
2. a. On or before the fifth calendar day following the effective date of this act, the Director of the Division of Taxation in the Department of the Treasury shall provide written notice to each person who shall be otherwise liable for the payment of tax on highway fuel under the "Petroleum Products Gross Receipts Tax Act," P.L.1990, c.42 (C.54:15B-1 et seq.). In addition to any other information that the director may deem appropriate, the written notice shall inform each person of the provisions of this act.
b. For any month in which the tax imposed on highway fuel under paragraphs (1) and (2) of subsection a. of section 3 of P.L.1990, c.42 (C.54:15B-3) is reduced or suspended pursuant to section 1 of this act, any person otherwise liable for the payment of that tax shall submit a written report to the director on or before the 22nd day of the following month. In addition to any other information that the director may deem appropriate, the report shall indicate the:
(1) amount of tax paid on
highway fuel under paragraph (1) of
subsection a. of section 3 of P.L.1990, c.42 (C.54:15B-3); and
(2) total amount of tax on highway fuel that would have been owed under paragraphs (1) and (2) of subsection a. of section 3 of P.L.1990, c.42 (C.54:15B-3) if the tax was not reduced pursuant to this act.
3. There is appropriated from the General Fund for deposit into the "Transportation Trust Fund Account," established pursuant to section 20 of P.L.1984, c.73 (C.27:1B-20), such amounts as are necessary to offset any reductions in petroleum products gross receipts tax revenues that occur as a direct result of the provisions of section 1 of this act, subject to the approval of the Director of the Division of Budget and Accounting in the Department of the Treasury.
4. Notwithstanding any provision of subsection c. of section 3 of P.L.1990, c.42 (C.54:15B-3) to the contrary, the State Treasurer shall consider all amounts appropriated pursuant to section 3 of this act as though such amounts were petroleum products gross receipts tax revenues for the purposes of all calculations made under subsection c. of section 3 of P.L.1990, c.42 (C.54:15B-3) relating to the determination of the highway fuel cap amount and the rate of tax imposed on highway fuel.
5. Notwithstanding any provision of section 19 of P.L.2016, c.57 (C.52:18A-257) to the contrary, this act shall not cause the review council to certify for the purposes of subparagraph (h) of paragraph (1) of subsection a. of section 3 of P.L.1990, c.42 (C.54:15B-3) to the director that the scheduled implementation of P.L.2016, c.57 (C.54:15B-13 et al.) has been impeded.
6. Notwithstanding any provision of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.) to the contrary, the Director of the Division of Taxation in the Department of the Treasury shall adopt, immediately upon filing with the Office of Administrative Law and no later than the 30th day after the date of enactment of this act, such rules and regulations as the director deems necessary to implement the provisions of this act, which regulations may thereafter be amended by the director. The regulations shall expire upon the expiration of this act.
7. This act shall take effect immediately.
STATEMENT
This bill provides a 60-day
reduction in the taxation of highway
fuels under the "Petroleum Products Gross Receipts Tax Act," P.L.1990, c.42
(C.54:15B-1 et seq.).
Specifically, the bill provides that during the 60-day period, the tax imposed on highway fuel would return to the rates imposed before the enactment of P.L.2016, c.57 (C.54:15B-13 et al.), which increased the tax on highway fuel and allowed for annual adjustment of such tax rate. Accordingly, the rate of tax imposed on highway fuel under the "Petroleum Products Gross Receipts Tax Act," P.L.1990, c.42 (C.54:15B-1 et seq.) would equal 2.75 percent of the gross receipts derived from the first sale of highway fuel within the State. Under the bill, the 60-day period would begin on the 10th calendar day following the date of enactment and conclude on the 70th calendar day following the date of enactment.
Additionally, the bill appropriates such amounts as are necessary to offset any reductions in revenue that occur as a result of the bill. These monies would be appropriated from the General Fund for deposit into the Transportation Trust Fund. The bill also requires the State Treasurer to consider these appropriations when determining the annual rate of taxation for highway fuel under the petroleum products gross receipts tax.
