ACR20

Sponsored by:

Assemblyman JOSEPH J. ROBERTS, JR.

District 5 (Camden and Gloucester)

Assemblywoman BONNIE WATSON COLEMAN

District 15 (Mercer)

Assemblyman NEIL M. COHEN

District 20 (Union)

Assemblyman JOHN J. BURZICHELLI

District 3 (Salem, Cumberland and Gloucester)

Co-Sponsored by:

Assemblymen Albano, Moriarty, Mayer, Greenwald, Assemblywoman Lampitt, Assemblyman Whelan, Assemblywoman Cruz-Perez, Senators Buono, Madden and Turner

SYNOPSIS

Amends the State Constitution to dedicate the amount of annual revenue derived from a tax rate of 1% imposed under the sales and use tax for property tax reform.

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 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%] 1% 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.

(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 Attorney General, 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:

		DEDICATES ANNUAL REVENUE OF AN AMOUNT EQUAL TO A TAX RATE OF 1% UNDER THE STATE SALES TAX FOR PROPERTY TAX REFORM
	YES	Do you approve the amendment of Article VIII, Section I of the Constitution of the State of New Jersey, to provide for the annual dedication and annual appropriation of an amount equal to the annual revenue derived from a tax rate of 1% imposed under the New Jersey Sales and Use Tax, exclusively for the purpose of property tax reform, through a special Property Tax Reform Account established in the constitutionally dedicated Property Tax Relief Fund?
		INTERPRETIVE STATEMENT
	NO	This constitutional amendment provides that an amount equal to the annual revenue derived from a tax rate of 1% imposed under the New Jersey Sales and Use Tax Act shall be annually dedicated in a special account in the Property Tax Relief Fund and annually appropriated for property tax reform.

STATEMENT

This constitutional amendment provides that an amount equal to the annual revenue derived from a tax rate of 1% imposed under the New Jersey Sales and Use Tax Act shall be annually dedicated in a special account in the Property Tax Relief Fund and annually appropriated for property tax reform. This constitutional dedication will first apply in the first calendar following approval by the voters at the November, 2007 general election.

The constitutional amendment increases the dedication of revenue for property tax reform. In 2006, one-half of the revenue from the new 1% rate increase in the State sales tax was dedicated by Constitutional amendment for property tax reform. This amendment dedicates the full amount of the new revenue.

Property tax reform is urgently needed for New Jerseyans. The new homestead credit program provides such reform and provides immediate relief to taxpayers in the State by raising homestead benefit amounts. The increase of funds dedicated for property tax reform in this amendment will help fund the improved benefits under the credit program. For taxpayers to see real and permanent tax reform, a constitutional pledge of the full amount of the sales tax increase is necessary. This amendment guarantees such funding for property tax reform.