SENATE, No. 470

STATE OF NEW JERSEY

214th LEGISLATURE

 

PRE-FILED FOR INTRODUCTION IN THE 2010 SESSION

 


 

Sponsored by:

Senator  RAYMOND J. LESNIAK

District 20 (Union)

 

 

 

 

SYNOPSIS

     Increases motor fuels tax and amount annually required to be credited to Transportation Trust Fund.

 

CURRENT VERSION OF TEXT

     As introduced.

  


An Act concerning funding the State’s transportation system and increasing the motor fuels tax, amending P.L.1984, c.73, R.S.54:29-37, 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 shall credit to this account:

     a.     An amount equivalent to the revenue derived from [$0.105 per gallon] from that portion of the tax imposed on the sale of motor fuels pursuant to chapter 39 of Title 54 of the Revised Statutes equal to: $0.105 per gallon in the State fiscal years beginning on July 1, 2006 and thereafter through the State fiscal year beginning on July 1, 2009, as provided in Article VIII, Section II, paragraph 4 of the State Constitution; $0.125 per gallon in the State fiscal year beginning on July 1, 2010; $0.145 per gallon in the State fiscal year beginning on July 1, 2011; $0.165 per gallon in the State fiscal year beginning on July 1, 2012; $0.185 per gallon in the State fiscal year beginning on July 1, 2013; $0.205 per gallon in the State fiscal year beginning on July 1, 2014; and $0.225 per gallon in the State fiscal year beginning on July 1, 2015, and each State fiscal year thereafter, provided, however, such amount during any fiscal year shall not be less than $483,000,000 in each of the State fiscal years beginning on July 1, 2006 and thereafter through the State fiscal year beginning on July 1, 2009; $575 million in the State fiscal year beginning on July 1, 2010; $667 million in the State fiscal year beginning on July 1, 2011; $759 million in the State fiscal year beginning on July 1, 2012; $851 million in the State fiscal year beginning on July 1, 2013; $943 million in the State fiscal year beginning on July 1, 2014; and $1,035 million  in the State fiscal year beginning on July 1, 2015 and each State fiscal year thereafter;

       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 shall also credit to this account, in accordance with a contract between the 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; $0.125 per gallon in the State fiscal year beginning on July 1, 2010; $0.145 per gallon in the State fiscal year beginning on July 1, 2011; $0.165 per gallon in the State fiscal year beginning on July 1, 2012; $0.185 per gallon in the State fiscal year beginning on July 1, 2013; $0.205 per gallon in the State fiscal year beginning on July 1, 2014; and $0.225 per gallon in the State fiscal year beginning on July 1, 2015 and in each State fiscal year thereafter.

     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).

(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.  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; $0.155 per gallon or fractional part thereof in the State fiscal year beginning on July 1, 2010; $0.175 per gallon or fractional part thereof in the State fiscal year beginning on July 1, 2011; $0.195 per gallon or fractional part thereof in the State fiscal year beginning on July 1, 2012; $0.215 per gallon or fractional part thereof in the State fiscal year beginning on July 1, 2013; $0.235 per gallon or fractional part thereof in the State fiscal year beginning on July 1, 2014; and $0.255 per gallon or fractional part thereof in the State fiscal year beginning on July 1, 2015 and in each State fiscal year thereafter.

     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.

(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 a corresponding increase in the amount required by law to be annually credited to the TTF.  The amount of the increase would be two cents per gallon in the each of the State fiscal years 2011 through 2016.

     The bill increases the State’s required annual contribution to the TTF from the current $483 million to $575 million in State FY2011, $667 million in State FY2012, $759 in State FY2013, $851 in State FY2014, $943 million in State FY2015, and $1,035 million in State FY2016.