SENATE, No. 2285

STATE OF NEW JERSEY

216th LEGISLATURE

 

INTRODUCED JUNE 30, 2014

 


 

Sponsored by:

Senator  PAUL A. SARLO

District 36 (Bergen and Passaic)

 

 

 

 

SYNOPSIS

     Imposes 66% tax on gross gaming revenue from wagering at Meadowlands Complex casino; provides distributions to State General Fund, CRDA, and Hackensack Meadowlands Tax Sharing Stabilization Fund.

 

CURRENT VERSION OF TEXT

     As introduced.

  


An Act concerning the taxation of gross gaming revenue from wagering at a casino at the Meadowlands Complex and providing for uses thereof and supplementing the "Casino Control Act," P.L.1977, c.110 (C.5:12-1 et seq.).

 

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

 

     1.    There is hereby imposed an annual tax on gross revenues, as defined under section 24 of P.L.1977, c.110 (C.5:12-24), realized by a casino at the Meadowlands Complex in the amount of 66 percent of such gross revenues.  The 8 percent tax on casino gross revenues established by section 144 of P.L.1977, c.110 (C.5:12-144) and the investment alternative tax established by section 3 of P.L.1984, c.218 (C.5:12-144.1) shall not apply to the gross revenues realized by a casino at the Meadowlands Complex under this section.  The 66 percent annual tax on gross revenues under this section shall be distributed as follows: 65 percent to the State General Fund; 25 percent to the Casino Reinvestment Development Authority established pursuant to section 5 of P.L.1984, c.218 (C.5:12-153) to fund projects consistent with its purposes as established by law; and 10 percent to the Hackensack Meadowlands Tax Sharing Stabilization Fund for the purposes authorized under section 2 of P.L.1999, c.178 (C.13:17-74.1).    

 

     2.    This act shall take effect immediately.

 

 

STATEMENT

 

     This bill establishes an annual tax on the gross revenues realized by a casino at the Meadowlands Complex in the amount of 66% of such gross revenues.  The amounts from the 66% percent annual tax on gross revenues would be distributed as follows: 65% to the State General Fund; 25% to the Casino Reinvestment Development Authority to fund projects consistent with its purposes as established by law; and 10% to the Hackensack Meadowlands Tax Sharing Stabilization Fund for the purposes authorized by law.  

     Under current law, a casino’s gross revenue means the total of all sums actually received by a casino from gaming operations, less only the total of all sums actually paid out as winnings to patrons, but not including the cash equivalent value of any merchandise or thing of value or any amount received by a casino from casino simulcasting of horse races.  This same definition of gross revenues would apply to a casino at the Meadowlands Complex.  However, the current 8% tax on casino gross revenues and the 1.25% investment alternative tax would not apply to the gross revenues realized by a casino at the Meadowlands Complex. 

     Although this bill would take effect immediately, its provisions would not be implemented until casino gaming at the Meadowlands Complex is authorized.