Bill Text: NJ S4108 | 2018-2019 | Regular Session | Introduced
Bill Title: Provides for temporary gross income tax credit for certain monthly ferry service commuting passes.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2019-09-12 - Introduced in the Senate, Referred to Senate Transportation Committee [S4108 Detail]
Download: New_Jersey-2018-S4108-Introduced.html
Sponsored by:
Senator BRIAN P. STACK
District 33 (Hudson)
SYNOPSIS
Provides for temporary gross income tax credit for certain monthly ferry service commuting passes.
CURRENT VERSION OF TEXT
As introduced.
An Act providing for a temporary gross income tax credit for certain monthly ferry service commuting passes and supplementing Title 54A of the New Jersey Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. For each of the first six taxable years beginning on or after the January 1 next following the date of enactment of P.L. , c. (C. ) (pending before the Legislature as this bill), a taxpayer who is a natural person having a principal residence in this State shall be allowed a credit against the tax otherwise due pursuant to the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., in an amount equal to 30 percent of the purchase price paid by the taxpayer during the taxable year for each monthly ferry commuting pass that the taxpayer purchased and used for ferry commuting during the taxable year. The amount of the tax credit applied under this section against the tax otherwise due under the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., for a taxable year, when taken together with any other payments, credits, deductions, and adjustments allowed by law shall not reduce the tax liability of the taxpayer to an amount less than zero.
b. In addition to the rulemaking authority granted to the director pursuant to N.J.S.54A:9-17, the director shall adopt, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), rules and regulations that are necessary to administer the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill). The director's rulemaking authority shall include, but not be limited to, rules and regulations necessary to ensure that:
(1) the credit allowed pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill) is limited to the use of ferry commuting passes for ferry commuting; and
(2) the taxpayer provide proof of purchase of one or more ferry commuting passes for the appropriate taxable year.
c. On or before May 1 of the sixth calendar year beginning on or after the date of enactment of P.L. , c. (C. ) (pending before the Legislature as this bill), the director shall prepare and submit a report to the Governor and, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), to the Legislature addressing the credit allowed pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill). The report shall include:
(1) the total value of credits allowed in the first five taxable years beginning on or after the date of enactment of P.L. , c. (C. ) (pending before the Legislature as this bill);
(2) the total value of credits allowed in the first five taxable years beginning on or after the date of enactment of P.L. , c. (C. ) (pending before the Legislature as this bill) by taxpayer income levels as defined in $10,000 increments;
(3) estimates of the foregone revenue attributable to the credit for each of the six taxable years beginning on or after the date of enactment of P.L. , c. (C. ) (pending before the Legislature as this bill) and each of the immediately succeeding six taxable years if the credit were to be renewed;
(4) information on the division's experience in implementing the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill), including, but not limited to, a description of increased workload associated with the credit; and
(5) an analysis as to the effectiveness of the credit as an incentive for encouraging the use of ferry commuting passes for ferry commuting and as a financial relief instrument for taxpayers who rely on ferry commuting passes for ferry commuting.
d. As used in this section:
"Director" means the Director of the Division of Taxation in the Department of the Treasury.
"Division" means the Division of Taxation in the Department of the Treasury.
"Ferry commuting" means traveling from or to the taxpayer's principal residence in this State to or from the taxpayer's workplace, or termini near those places, where the workplace is located in another state, for the primary purpose of reporting to the taxpayer's workplace to render work related services or returning therefrom.
"Ferry commuting pass" means a monthly pass purchased by a taxpayer for a purchase price of no less than $100 that the taxpayer uses to ride ferry passenger service.
"Ferry passenger service" shall have the same meaning as provided in section 3 of the "New Jersey Public Transportation Act of 1979," P.L.1979, c.150 (C.27:25-3).
2. This act shall take effect immediately.
STATEMENT
This bill provides for a temporary gross income tax credit for 30 percent of the amount a New Jersey resident taxpayer spends on monthly commuting passes for ferry service commuting from New Jersey to a workplace in another state. The purpose of this bill is to provide financial relief to New Jersey resident taxpayers who rely on ferry passenger service to get to work in another state and to incentivize the use of this mode of transportation.
Under the bill, a taxpayer may take a gross income tax credit for 30 percent of the portion of the purchase price paid for a monthly commuting pass costing $100 or more which is in proportion to the amount of ferry service commuting undertaken with the pass. The amount of the tax credit for a taxable year, when taken together with any other payments, credits, deductions, and adjustments allowed by law is not to reduce the tax liability of the taxpayer to an amount less than zero. The bill takes effect immediately, but the credit is available for the six taxable years beginning on or after the January 1 next following the date of enactment.
A ferry commuting pass includes monthly passes for ferry service which taxpayers purchase for their use at a price of no less than $100. Qualified commuting is limited to travel between the taxpayer's home and work, or termini near those places, one of which is located in the State, for the primary purpose of reporting to the taxpayer's workplace to render work related services or returning therefrom.
The bill also requires the Director of the Division of Taxation to complete a report on the credit, which is to be submitted to the Governor and Legislature by May 1 of the sixth year of the credit so as to enable consideration of the renewal or expiration thereof.
