ASSEMBLY, No. 2718

STATE OF NEW JERSEY

214th LEGISLATURE

 

INTRODUCED MAY 13, 2010

 


 

Sponsored by:

Assemblyman  ALBERT COUTINHO

District 29 (Essex and Union)

 

 

 

 

SYNOPSIS

     Increases motor fuels tax eight cents per year for three years with later CPI adjustment and requires all motor fuels taxes to be credited to Transportation Trust Fund.

 

CURRENT VERSION OF TEXT

     As introduced.

  


An Act concerning funding for the State’s transportation system and increasing the motor fuels tax, amending P.L.1984, c.73, R.S.54:39-27, and P.L.1992, c.23.

 

     Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

     1.    Section 20 of P.L.1984, c.73 (C.27:1B-20) is amended to read as follows:

     20.  There is hereby established in the General Fund an account entitled "Transportation Trust Fund Account." During the fiscal year beginning July 1, 1984 and during each succeeding fiscal year in which the authority has bonds, notes, or other obligations outstanding, the [treasurer] State Treasurer shall credit to this account:

     a.     [An amount equivalent to the revenue derived from $0.105 per gallon] All the State revenues collected from the tax imposed on the sale of motor fuels pursuant to chapter 39 of Title 54 of the Revised Statutes, as provided in Article VIII, Section II, paragraph 4 of the State Constitution [, provided, however, such amount during any fiscal year shall not be less than $483,000,000].

       b.         (Deleted by amendment, P.L.2000, c.73).

     c.     An amount equivalent to moneys received by the State in accordance with contracts entered into with toll road authorities or other State agencies, provided that effective with the fiscal year beginning July 1, 1988 the amount so credited shall not be less than [$24,500,000.00] $24,500,000 in any fiscal year.

     The [treasurer] State Treasurer shall also credit to this account, in accordance with a contract between the [treasurer] State Treasurer and the authority, an amount equivalent to the sum of the revenues due from the increase of fees for motor vehicle registrations collected pursuant to the amendment to R.S.39:3-20 made by [this act] section 32 of P.L.1984, c.73 and from the increase in the tax on diesel fuels imposed pursuant to the amendment to R.S.54:39-27 made by [this act] section 35 of P.L.1984, c.73 and by section 7 of P.L.1987, c.460, provided that the total amount credited during the fiscal year beginning July 1, 1984 shall not be less than [$20,000,000.00] $20,000,000 and that the total amount credited during the fiscal year beginning July 1, 1985 and during every fiscal year thereafter shall not be less than [$30,000,000.00]  $30,000,000.

     In addition to the amounts credited to the account by this section, commencing with the fiscal year beginning July 1, 1995 and every fiscal year thereafter, there shall be appropriated from the General Fund such additional amounts as are necessary to carry out the provisions of this act and beginning July 1, 2000 the fees collected pursuant to subsection a. of section 68 of P.L.1990, c.8 (C.17:33B-63) shall be credited to the account for the purposes of this act, provided, however, the amount credited from such fees during any fiscal year shall not be less than $60,000,000.

     d.    In addition to the amount credited in subsection a. of this section, beginning January 1 [following approval by the voters] , 2001, an amount equivalent to the revenue derived from the tax imposed on the sale of petroleum products pursuant to P.L.1990, c.42 (C.54:15B-1 et seq.), provided, however, such amount shall not be less than $100,000,000 in the period January 1 through June 30 [following approval by the voters]  , 2001 and shall not be less than $200,000,000 in any fiscal year thereafter and for the fiscal year commencing July 1, 2001 and for each fiscal year thereafter an amount equivalent to the revenue derived from the tax imposed under the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.) on the sale of new motor vehicles, provided, however, that such amount shall not be less than $200,000,000 for the fiscal year commencing July 1, 2003 and for each fiscal year thereafter, as provided in Article VIII, Section II, paragraph 4 of the State Constitution.

     No later than the fifth business day of the month following the month in which a credit has been made, the treasurer shall pay to the authority, for its purposes as provided herein, the amounts then credited to the Transportation Trust Fund Account, provided that the payments to the authority shall be subject to and dependent upon appropriations being made from time to time by the Legislature of the amounts thereof for the purposes of the act.

(cf: P.L.2006, c.3, s.3)

 

2.    R.S.54:39-27 is amended to read as follows:

     54:39-27. a.  Every distributor, importer, and gasoline jobber shall, on or before the 20th day of each month, render a report to the Director of the Division of Taxation, in a manner prescribed by the director, stating the number of gallons of fuel sold or used in this State by him during the preceding calendar month.  Upon application to the director, the period within which a report must be made may be extended by up to an additional 10 days, if it shall be deemed advisable by the director.  A tax [of $0.105 per gallon] on each gallon so reported[,] shall be paid by each distributor, importer, and gasoline jobber, such payment to accompany the filing of the report.  The rate of the tax shall be: $0.105 per gallon in the State fiscal years beginning on July 1, 1988 and in each State fiscal year thereafter through the State fiscal year beginning on July 1, 2009; $0.185 per gallon in the State fiscal year beginning on July 1, 2010; $0.265 per gallon in the State fiscal year beginning on July 1, 2011; $0.345 per gallon in the State fiscal year beginning on July 1, 2012; and in each State fiscal year thereafter, the rate of tax for the preceding State fiscal year multiplied by 1 plus the annual rate of inflation as determined pursuant to the provisions of subsection c. of this section; provided, however, that in any such State fiscal year for which the product of that multiplication shall not be an exact multiple of $0.001, the rate of tax shall be equal to that product rounded to the next higher multiple of $0.001.

     Such report shall contain such further information as the director may require. Under such regulations as the director may prescribe, sales of fuel may be made by one licensed distributor, importer, or gasoline jobber to another licensed distributor or gasoline jobber free of such tax.  If any distributor, importer, or gasoline jobber shall fail, neglect, or refuse to file the report within the time prescribed by this section, the director shall note such failure, neglect, or refusal upon his records, and shall estimate the sales, distribution, and use of said distributor, importer, or gasoline jobber, assessing the tax thereon, adding to said tax a penalty of 20% thereof for failure, neglect, or refusal to report, and such estimate shall be prima facie evidence of the true amount of tax due to the director from such distributor, importer, or gasoline jobber; provided that if a good and sufficient cause or reason is shown for such delinquency, the director may remit or waive the payment of the whole or any part of the  penalty, as provided in the State Tax Uniform Procedure Law, subtitle 9 of Title 54 of the Revised Statutes. Reports required by this section, exclusive of schedules, itemized statements and other supporting evidence annexed thereto, shall at all reasonable times be open to the public, anything contained in R.S.54:50-8 to the contrary notwithstanding.

b.      (Deleted by amendment, P.L.1992, c.23).

     c.     The annual rate of inflation for the purpose of determining hereunder that rate of tax for each State fiscal year beginning on or after July 1, 2013 shall be calculated and certified to the Director of the Division of Taxation in the Department of Treasury by the State Treasurer.  The annual rate of inflation shall be equal to the amount, expressed as a percent, by which the value of the consumer price index for urban wage earners and clerical workers for the nation, as reported by the United States Department of Labor for March of the calendar year in which the State fiscal year shall commence, exceeds the value of that index for March of the preceding calendar year.  For any year for which the percentage of change is negative, the annual rate of inflation shall be zero.

(cf: P.L.1992, c.23, s.18)

 

     3.    Section 54 of P.L.1992, c.23 (C.54:39-64.3) is amended to read as follows:

     54.  a.  An excise tax [at the rate of $0.135 per gallon or fractional part thereof] is imposed upon any seller of special fuels, and any user of special fuels, who delivers or places fuels into the fuel supply tank or other fueling receptacle or device of a motor vehicle for use to propel the vehicle over the public highways, or who uses special fuels within the meaning assigned by this chapter, or who makes sales of special fuels to unlicensed buyers.  The rate of the tax shall be: $0.135 per gallon or fractional part thereof in the State fiscal years beginning on July 1, 1988 and in each State fiscal year through the State fiscal year beginning on July 1, 2009; $0.215 per gallon or fractional part thereof in the State fiscal year beginning on July 1, 2010; $0.295 per gallon or fractional part thereof in the State fiscal year beginning on July 1, 2011; and in each State fiscal year thereafter, the rate of tax for the preceding State fiscal year multiplied by 1 plus the annual rate of inflation as determined pursuant to the provisions of subsection b. of this section; provided, however, that in any such State fiscal year for which the product of that multiplication shall not be an exact multiple of $0.001, the rate of tax shall be equal to that product rounded to the next higher multiple of $0.001.

     If a seller of special fuel fails to collect a tax the seller is liable for the tax due on the transaction unless the seller shall have taken from the buyer a certification in such form as shall be determined by the director. The tax herein imposed shall not apply to fuels not within the taxing power of this State under the Constitution of the United States.  The tax shall be paid to the State but once in respect to any fuels used within the State.  No tax is imposed upon (a.) any fuel that is used by or sold and delivered to the United States government, when such sales and deliveries are supported by documentary evidence satisfactory to the division, or (b.) upon any fuel not in excess of 150 gallons brought into this State in the fuel supply tanks or other fueling receptacles or devices of a motor vehicle, or (c.) upon any fuel used by, or sold or delivered to, the State of New Jersey or its political subdivisions when such sales and deliveries are supported by documentary evidence satisfactory to the division, or (d.) to fuel sold to diplomatic missions and diplomatic personnel under a program administered by the director and predicated upon the United States Department of State, Office of Foreign Missions', or successor office's national tax exemption program.  The tax shall be paid to the seller of special fuels as a trustee for and on account of the State.  The user or seller of special fuels shall maintain a separate trustee account to be credited daily with taxes due on amounts of fuels used on that day.  The account shall be maintained for and on account of the State of New Jersey.

     b.    The annual rate of inflation for the purpose of determining hereunder the rate of tax for each State fiscal year beginning on or after July 1, 2013 shall be calculated and certified to the Director of the Division of Taxation in the Department of the Treasury by the State Treasurer.  That annual rate of inflation shall be equal to the amount, expressed as a percent, by which the value of the consumer price index for urban wage earners and clerical workers for the nation, as reported by the United States Department of Labor for March of the calendar year in which the State fiscal year shall commence, exceeds the value of the index for March of the preceding calendar year.  For any year for which the percentage of change is negative, the annual rate of inflation shall be zero.

(cf: P.L.1992, c.23, s.54)

 

     4.    This act shall take effect immediately.

 

 

STATEMENT

 

     This bill would provide enhanced funding of the New Jersey Transportation Trust Fund (TTF) through an increase in the rate of the tax on motor fuels and would further require that all the State revenues collected from the motor fuels tax shall be annually credited to the TTF.  The amount of the increase in the motor fuels tax would be eight cents per gallon in the each of the State fiscal years 2011 through 2013, with further increases each fiscal year thereafter in proportion to the year-over-year increase in inflation.