Bill Text: NJ SCR115 | 2018-2019 | Regular Session | Introduced
Bill Title: Amends State Constitution to establish Surplus Gross Income Tax Revenue Account in Property Tax Relief Fund.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2019-06-03 - Public Hearing Held SCU [SCR115 Detail]
Download: New_Jersey-2018-SCR115-Introduced.html
Sponsored by:
Senator TROY SINGLETON
District 7 (Burlington)
SYNOPSIS
Amends State Constitution to establish Surplus Gross Income Tax Revenue Account in Property Tax Relief Fund.
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 Senate of the State of New Jersey (the General Assembly concurring):
1. The following proposed amendment to the Constitution of the State of New Jersey is hereby agreed to:
PROPOSED AMENDMENT
Amend Article VIII, Section I, paragraph 7 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 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. 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 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. (1) There is established in the perpetual Property Tax Relief Fund established pursuant to this paragraph a restricted reserve account designated the Surplus Gross Income Tax Revenue Account. The amount to be annually credited to the Surplus Gross Income Tax Revenue Account shall be determined in the following manner:
(a) The amount of anticipated revenue from the New Jersey gross income tax certified by the Governor upon approval of the annual appropriation act for the fiscal year immediately preceding the fiscal year in which a credit to the Surplus Gross Income Tax Revenue Account is required shall first be identified.
(b) The amount of gross income revenue actually deposited in the Property Tax Relief Fund in the fiscal year immediately preceding the fiscal year in which a credit to the Surplus Gross Income Tax Revenue Account is required shall then be determined. The amount of the credit to the Surplus Gross Income Tax Revenue Account shall thus be an amount equivalent to one-half of the excess, if there is any, of the amount determined in part (b) of this subparagraph that exceeds by more than six percent the amount identified in part (a) of this subparagraph. If in the State fiscal year immediately preceding the fiscal year in which a credit to the account is required, there is a State law enacted which will increase the gross income tax revenue to the Property Tax Relief Fund, the amount raised from that increase for the fiscal year in which the increase is in effect shall be disregarded in determining the amount to be credited to the account.
(2) The Legislature may make an appropriation from the Surplus Gross Income Tax Revenue Account only:
(a) upon separate certification by the Governor that anticipated gross income tax revenues in the Property Tax Relief Fund are estimated to be less than those certified by the Governor upon approval of the annual appropriation act;
(b) to avoid increasing any rate of gross income tax imposed or otherwise modifying the gross income tax, including elimination or modification of deductions, exclusions, or exemptions, to offset gross income tax revenue declines anticipated in the Property Tax Relief Fund; or
(c) to meet the costs of any emergency identified by the Governor that is within the purposes of the Property Tax Relief Fund.
(cf: Art. VIII, Sec. I, par. 7 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 LIMIT SPENDING OF SURPLUS REVENUE FROM GROSS INCOME TAX
|
|
|
YES |
Do you approve amending the State Constitution to require that certain money received by the State from the gross income tax be placed in a reserve fund for property tax relief? Money will remain in the reserve fund, only to be used for property tax relief programs: (1) if less money from the gross income tax is collected than expected; (2) to avoid increasing the gross income tax; or (3) to meet the costs of an emergency identified by the Governor.
|
|
|
|
INTERPRETIVE STATEMENT
|
|
|
NO |
This amendment requires that certain money received by the State from the gross income tax be placed in a reserve fund for property tax relief. Money will remain in the reserve fund only to be used under certain circumstances set forth in this amendment. The State may use the money in the reserve fund only: (1) if less money from the gross income tax is collected than expected; (2) to avoid increasing the gross income tax; or (3) to meet the costs of an emergency identified by the Governor. If at least one of these conditions is met, then the Legislature may use money from the reserve fund for property tax relief programs and State Aid programs that offset local property taxes. The reserve fund will receive tax money if the State collects six percent more gross income tax money than predicted by the Governor. Every year, the Governor is required to certify the amount of money the State is expected to receive from the gross income tax. If the amount actually received exceeds the Governor's prediction by more than six percent, one-half of the extra money will be credited to the reserve fund.
|
STATEMENT
This constitutional amendment establishes a Surplus Gross Income Tax Revenue Account in the Property Tax Relief Fund to serve as a "rainy day fund" for property tax relief programs and State Aid programs that offset local property taxes. Under the amendment, an amount equal to one-half of the excess gross income tax revenue collected during the State fiscal year immediately preceding the fiscal year in which a credit to the account is required to be made must be credited to the Surplus Gross Income Tax Revenue Account if actual gross income tax revenues in that immediately preceding fiscal year exceeded the Governor's certified revenues by more than six percent. If in the State fiscal year immediately preceding the fiscal year in which a credit to the account is required to be made, there is a State law enacted which will increase the gross income tax revenue to the Property Tax Relief Fund, the yield from that increase for that fiscal year in which the increase is in effect is disregarded in determining the amount to be credited to the Surplus Gross Income Tax Revenue Account.
Balances in the Surplus Gross Income Tax Revenue Account may be appropriated by the Legislature: (1) if anticipated gross income tax revenues are estimated to be less than the Governor's certification; (2) to offset gross income tax revenue declines instead of increasing the gross income tax rate or modifying the gross income tax to collect more tax; or (3) for meeting the costs of any emergency identified by the Governor that is within the purposes of the Property Tax Relief Fund.
