[First Reprint]

ASSEMBLY, No. 2753

STATE OF NEW JERSEY

215th LEGISLATURE

 

INTRODUCED MAY 10, 2012

 


 

Sponsored by:

Assemblyman  DANIEL R. BENSON

District 14 (Mercer and Middlesex)

Assemblyman  WAYNE P. DEANGELO

District 14 (Mercer and Middlesex)

Assemblywoman  MILA M. JASEY

District 27 (Essex and Morris)

 

Co-Sponsored by:

Assemblywoman Wagner, Assemblymen Eustace, Coughlin, Gusciora and Assemblywoman Riley

 

 

 

 

SYNOPSIS

     Requires certain energy tax receipts to be paid directly to municipalities.

 

CURRENT VERSION OF TEXT

     As reported by the Assembly Housing and Local Government Committee on December 6, 2012, with amendments.

  


An Act concerning collection of energy tax receipts and amending P.L.1997, c.167.

 

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

 

     1.    Section 2 of P.L.1997, c.167 (C.52:27D-439) is amended to read as follows:

     2.    a.  (1) Commencing July 1, 1997 there is established the "Energy Tax Receipts Property Tax Relief Fund" as a special dedicated fund in the State Treasury into which there shall be credited annually, commencing in State fiscal year 1998 and concluding in State fiscal year 1[2012] 20131, the sum of $740,000,000 or the amount determined pursuant to subsection e. of this section from the following: net payments under the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.) from sales and use of energy or utility services, net payments under the Corporation Business Tax Act (1945), P.L.1945, c.162 (C.54:10A-1 et seq.) from gas, electric, and gas and electric public utilities, whether municipal or otherwise, that were subject to tax pursuant to the provisions of P.L.1940, c.5 (C.54:30A-49 et seq.) prior to January 1, 1998, net payments under the Corporation Business Tax Act (1945), P.L.1945, c.162 (C.54:10A-1 et seq.) from telecommunications public utilities that were subject to tax pursuant to the provisions of P.L.1940, c.4 (C.54:30A-16 et seq.) as of April 1, 1997, net payments under P.L.1940, c.5 (C.54:30A-49 et seq.) from sewerage and water corporations, net payments under the "Transitional Energy Facility Assessment Act," P.L.1997, c.162 (C.54:30A-100 through C.54:30A-113), and such sums from the General Fund as may be necessary to provide that the annual amount credited to the fund shall equal $740,000,000 or the amount determined pursuant to subsection e. of this section.

     (2)   Commencing with State fiscal year 1[2013] 20141 , the State Treasurer shall determine the amount calculated pursuant to subsection e. of this section, and shall advise each entity that was responsible for payments deposited under paragraph (1) of this subsection of the amounts currently due to each municipality, based on the 1[same apportionment formula used to distribute aid from the "Energy Tax Receipts Property Tax Relief Fund."] formula provided in subsection e. of this section.1 The State Treasurer shall also, at the same time, advise each municipal tax collector of the entities responsible for payments to the municipality and of the amounts due under this section.

     b.    Notwithstanding the provisions of P.L.1940, c.4 (C.54:30A-16 et seq.), P.L.1940, c.5 (C.54:30A-49 et seq.) and any other provision of law concerning the apportionment and distribution by the State of taxes paid by public utilities,

     (1)   There shall be paid during the State fiscal year 1998 and during each fiscal year thereafter through State fiscal year 1[2012] 20131 , from the "Energy Tax Receipts Property Tax Relief Fund" to the municipalities of the State the sum of $740,000,000 or the amount determined pursuant to subsection e. of this section.

     (2)   A portion of the $740,000,000 or the amount determined pursuant to subsection e. of this section shall be allocated in a manner that provides that each municipality shall receive an amount not less than the largest annual amount received or to be received by the municipality from:

     (a)   the distribution of $685,000,000 from the proceeds of the public utilities franchise and gross receipts taxes under P.L.1940, c.4 (C.54:30A-16 et seq.) and P.L.1940, c.5 (C.54:30A-49 et seq.) in calendar year 1994, 1995 or 1996; or

     (b)   the distribution of $685,000,000 from the proceeds of the public utilities franchise and gross receipts taxes under P.L.1940, c.4 (C.54:30A-16 et seq.) and P.L.1940, c.5 (C.54:30A-49 et seq.) or from taxes and assessments collected in replacement of such taxes as released by the Division of Local Government Services in the Department of Community Affairs as fiscal year 1998 estimated franchise and gross receipts taxes State aid distributions by municipality prior to the certification of apportionment of such funds by the Director of the Division of Taxation and the amounts required pursuant to subsection d. of this section.

     (3)   A portion of the $740,000,000 or the amount determined pursuant to subsection e. of this section shall be allocated in a manner that provides that each municipality shall receive an amount equal to the difference, if any, between the amount it received pursuant to paragraph (2) of this subsection and the sum of the amounts that the municipality received pursuant to the certification made in the 1997 calendar year released by the Division of Local Government Services in the Department of Community Affairs as the fiscal year 1998 estimated franchise and gross receipts taxes State aid distribution of $685,000,000 and the certification of the 1997 fiscal year distribution of $45,000,000.

     (4)   The portion of the $740,000,000 or the amount, not more than $755,000,000, determined pursuant to subsection e. of this section remaining after the allocations pursuant to paragraphs (2) and (3) of this subsection shall be distributed in proportion to the amounts distributed pursuant to paragraph (2) of this subsection.

     (5)   Commencing with State fiscal year 1[2013] 20141 , each municipality’s share of the amount, determined pursuant to paragraph (2) of subsection a. of this section, shall be collected directly by each municipal tax collector from the energy taxpayers.

     c.     (1) The funds distributed pursuant to paragraphs (2) and (4) of subsection b. of this section shall be distributed annually to municipalities on the following schedule: July 15, 35% of the total amount due; August 1, 10% of the total amount due; September 1, 30% of the total amount due; October 1, 15% of the total amount due; November 1, 5% of the total amount due; and December 1, 5% of the total amount due.

     (2)   The funds distributed pursuant to paragraph (3) of subsection b. of this section, prior to January 1, 2002 for all municipalities, and distributed after January 1, 2002 for municipalities operating on a State fiscal year basis, shall be distributed annually to those municipalities on or before June 30. The funds distributed after January 1, 2002 pursuant to paragraph (3) of subsection b. of this section to calendar year municipalities shall be distributed annually on or before July 15.

     d.    The allocation set forth in paragraph (2) of subsection b. of this section shall be adjusted to increase each appropriate municipal distribution by the amount necessary to:

     (1)   make corrections to apportionment valuations or distribution values made by the Director of the Division of Taxation in the Department of the Treasury pursuant to R.S.54:30-2; and

     (2)   correct equitable distortions, as determined by the State Treasurer, resulting from the application of section 2 of P.L.1980, c.10 (C.54:30A-24.1) and section 4 of P.L.1980, c.11 (C.54:30A-61.1).

     The director shall report to the Legislature, on or before July 15, 1997, the amount and distribution of the corrections pursuant to paragraphs (1) and (2) of this subsection.

     e.     1(1)1 The amount credited to the "Energy Tax Receipts Property Tax Relief Fund" shall be $745,000,000 for State fiscal year 1999, $750,000,000 for each of State fiscal years 2000 and 2001, $755,000,000 for State fiscal year 2002, and for each State fiscal year thereafter through State fiscal year  1[2012] 20131 the amount equal to the amount credited in the prior State fiscal year multiplied by the sum of 1.0 and the index rate or zero, whichever is greater.  The total amount from which the State Treasurer shall determine the apportionment of energy tax receipts to be collected by each municipality shall be 1[$1,063,566,000] $1,108,115,0001 for State fiscal year 1[2013] 20141 , and for each State fiscal year thereafter, that total amount shall equal the total amount for the prior State fiscal year multiplied by the sum of 1.0 and the index rate or zero, whichever is greater.  As used in this section, "index rate" means the rate of annual percentage increase, rounded to the nearest half-percent, in the Implicit Price Deflator for State and Local Government Purchases of Goods and Services, computed and published quarterly by the United States Department of Commerce, Bureau of Economic Analysis, calculating the annual increase therein at the second calendar quarter which occurred in the next preceding State fiscal year.  The Director of the Division of Local Government Services shall promulgate annually the index rate to apply in the next following State fiscal year which shall be the same as the index rate determined pursuant to section 4 of P.L.1983, c.49 (C.40A:4-45.1a).  Any amount of aid distributed to or collected by a municipality in excess of the amount distributed to the municipality from the "Energy Tax Receipts Property Tax Relief Fund" during the State fiscal year 2002 shall be used solely and exclusively by each municipality for the purpose of reducing the amount the municipality is required to raise by local property tax levy for municipal purposes.

     1(2) In State Fiscal Year 2014 there shall be credited and apportioned pursuant to paragraph (1) of this subsection an amount sufficient to provide to each municipality from the “Energy Tax Receipts Property Tax Relief Fund” an additional amount equal to or greater than the difference between the sum of Consolidated Municipal Property Taxe Relief Aid and Energy Tax Receipts Property Tax Relief Aid paid to that municipality in Fiscal Year 2008 and the sum of Consolidated Municipal Property Taxe Relief Aid and Energy Tax Receipts Property Tax Relief Aid paid to that municipality in Fiscal Year 2012.  In each fiscal year thereafter, the State Treasurer shall determine the amount to be apportioned to each municipality by multiplying the amount apportioned in the prior fiscal year by the sum of 1.0 and the index rate, or 1.0, whichever is greater.1

     f.     [Notwithstanding any other provision of this section or any other provision of law to the contrary, if any municipality paid a county for an amount for county purposes from the amount it received from its apportionment of taxes according to the limitations on the municipalities apportionment under section 4 of P.L.1980, c.11 (C.54:30A-61.1), the highest amount of that payment during calendar years 1994, 1995, and 1996 shall be paid annually directly to that county by the State Treasurer and be deducted from that municipality's distribution otherwise determined pursuant to paragraph (2) of subsection b. of this section.] (Deleted pursuant to P.L.    , c.    .) (pending before the Legislature as this bill)

(cf: P.L.2002, c.3, s.1)

 

     2.    Section 3 of P.L.1997, c.167 (C.52:27D-440) is amended to read as follows:

     3.    If, in any State fiscal year, net payments under the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.) from sales and use of energy or utility services, net payments under the Corporation Business Tax Act (1945), P.L.1945, c.162 (C.54:10A-1 et seq.) from gas, electric, and gas and electric public utilities, whether municipal or otherwise, that were subject to tax pursuant to the provisions of P.L.1940, c.5 (C.54:30A-49 et seq.) prior to January 1, 1998, net payments under the Corporation Business Tax Act (1945), P.L.1945, c.162 (C.54:10A-1 et seq.) from telecommunications public utilities that were subject to tax pursuant to the provisions of P.L.1940, c.4 (C.54:30A-16 et seq.) as of April 1, 1997, net payments under P.L.1940, c.5 (C.54:30A-49 et seq.) from sewerage and water corporations, net payments under the "Transitional Energy Facility Assessment Act," P.L.1997, c.162 (C.54:30A-100 through C.54:30A-113) exceed $1,425,000,000, 75% of that amount of net payments in excess of $1,425,000,000 shall be [credited to the "Energy Tax Receipts Property Tax Relief Fund" in addition to the amount credited pursuant to section 2 of P.L.1997, c.167 (C.52:27D-439), for distribution] allocated to municipalities [as] for collection as additional aid.

(cf: P.L.1997, c.167, s.3)

 

     3.    Section 4 of P.L.1997, c.167 (C.52:27D-441) is amended to read as follows:

     4.    a.  1(1)1 The annual appropriations act for each State fiscal year commencing with State fiscal year 1998 and concluding with State fiscal year  1[2012] 20131 shall appropriate and distribute during the fiscal year an amount not less than $740,000,000 or the amount determined pursuant to subsection e. of section 2 of P.L.1997, c.167 (C.52:27D-439)from the "Energy Tax Receipts Property Tax Relief Fund" pursuant to the provisions of section 2 of P.L.1997, c.167 (C.52:27D-439), for the purposes of that fund.

     1(2) The annual appropriations act for each State fiscal year commencing with State Fiscal Year 2014 shall apportion to each municipality an amount not less than the amount apportioned to each municipality pursuant to subsection e. of section 2 of P.L.1997, c.167 (C.52:27D-439).1

     b.    If the provisions of subsection a. of this section are not met on the effective date of an annual appropriations act for the State fiscal year, or if an amendment or supplement to an annual appropriations act for the State fiscal year should violate the provisions of subsection a. of this section, the Director of the Division of Budget and Accounting in the Department of the Treasury shall, not later than five days after the enactment of the annual appropriations act, or an amendment or supplement thereto, that violates the provisions of subsection a. of this section, certify to the Director of the Division of Taxation that the requirements of subsection a. of this section have not been met.

     c.     The Director of the Division of Taxation shall, no later than five days after certification by the Director of the Division of Budget and Accounting in the Department of the Treasury pursuant to subsection b. of this section that the provisions of subsection a. of this section have not been met or have been violated by an amendment or supplement to the annual appropriations act, notify all taxpayers that have filed a return under the Corporation Business Tax (1946), P.L.1945, c.162 (C.54:10A-1 et seq.) during the previous calendar year, other than taxpayers that are gas, electric, and gas and electric, or telecommunications public utilities as defined pursuant to subsection (q) of section 4 of P.L.1945, c.162 (C.54:10A-4) pursuant to the amendment to that section 4 made in section 2 of P.L.1997, c.162, that the taxpayer shall have no liability pursuant to the provisions of P.L.1945, c.162 for any corporation business tax for the taxpayer's current privilege period, notwithstanding any other provision of law to the contrary.

(cf: P.L.1997, c.167, s.4)

 

     4.    This act shall take effect immediately and shall first be applicable to State fiscal year 1[2013] 20141.