ASSEMBLY, No. 342

STATE OF NEW JERSEY

Introduced Pending Technical Review by Legislative Counsel

PRE-FILED FOR INTRODUCTION IN THE 1996 SESSION

By Assemblymen PASCRELL and BAGGER

An Act concerning reductions or discounts in the rate of taxation of the units of electricity and natural gas sold in the business of a gas or electric light, heat and power corporation and amending P.L.1991, c.184.

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

    1. Section 11 of P.L.1991, c.184 (C.54:30A-54.7) is amended to read as follows:

    11. Gas and electric light, heat and power corporations subject to tax pursuant to section 10 of P.L.1991, c.184 (C.54:30A-54.6) shall file with the Board of Public Utilities amendments to their existing tariffs, contracts or schedules of service designating the appropriate class in the residential class category or in the non-residential class category for each tariff, contract or schedule of service. The initial designations shall maintain as closely as possible the relative share of gross receipts and franchise taxes paid through each tariff, contract or schedule of service in 1991. Whenever a gas or electric light, heat and power corporation shall file with the Board of Public Utilities a new tariff, contract or schedule of service, such corporation shall include with the filing a designation of the appropriate residential class category or non-residential class category.

    The Board of Public Utilities may permit corporations to establish new tariffs, contracts or schedules, or to amend existing tariffs, contracts or schedules, as necessary to comply with the provisions of this amendatory and supplementary act, P.L.1991, c.184 (C.54:30A-18.6 et al.). The Board of Public Utilities may authorize corporations to engage in such deferred accounting of costs resulting from actions on the part of taxpayers as may be necessary to comply with the provisions of this amendatory and supplementary act. Whenever a corporation shall establish in its tariffs, contracts or schedules a new class, the Board of Public Utilities shall designate it in the residential class category or non-residential class category for the purposes of this amendatory and supplementary act. The Board shall, in consultation with the director, establish a rate of taxation as is appropriate for sales of corresponding therms of gas and corresponding kilowatthours of electricity in that class in such manner as not to alter the amount of the taxpayer's total tax liability for the year in which the new class is implemented, and on the same basis, as nearly as practicable, as established for previously existing classes in the residential class category or non-residential class category, as appropriate. There shall be no discount or reduction in the rate of taxation in the establishment of any new tariffs, contracts or schedules, or amendments to existing tariffs, contracts or schedules, or for any new or previously existing classes. The Board shall assure that that portion of a taxpayer's tax liability attributed within its classes in the residential class category or non-residential class category, as the case may be, shall be distributed in an equitable manner so as to maintain, as nearly as practicable, the distributions made among those classes in the initial attributions of tax liability under this amendatory and supplementary act, subject to any later adjustments made by the board, any changes from the initial attributions necessary to reflect proportional changes in unit sales made among the classes, and any modifications necessary to establish the tax liability to be attributed to, and the unit sales made in, the new class.

(cf: P.L.1991, c.184, s.11)

    2. This act shall take effect immediately.

STATEMENT

    This bill would prohibit the Board of Public Utilities from reducing or discounting the rate of taxation of the units of gas and electricity sold in the business of a gas or electric light, heat and power corporation.

Prohibiting reductions or discounts in rate of taxation of units of electricity and gas sold by gas or electric light, heat and power corporations.