ASSEMBLY APPROPRIATIONS COMMITTEE

STATEMENT TO

ASSEMBLY, No. 35

with Assembly committee amendments

STATE OF NEW JERSEY

DATED: JUNE 20, 1996

      The Assembly Appropriations Committee reports favorably Assembly Bill No. 35, with committee amendments.

      Assembly Bill No. 35, as amended, requires the State to make an additional distribution of public utilities gross receipts and franchise taxes revenue during Fiscal Year 1996. The amount of the distribution is equal to the amount by which collections of these taxes have exceeded $960,000,000, the amount of the State anticipated retention of $275,000,000 plus the $685,000,000 previously apportioned for distribution to municipalities during Fiscal Year 1996.

      The distribution of the additional collections is first to be made in amounts equal to decreases, if any, resulting from corrections to apportionment valuations made by the Director of the Division of Taxation pursuant to R.S.54:30-2 (which allows the director to correct for clerical errors or omissions in the apportionment of taxes), and then in proportion to the municipal distributions made from the $685,000,000 apportioned and paid earlier in the fiscal year. The supplementary distribution must be used by the recipient municipalities to reduce the local municipal property tax levy, which shall be reflected as a change in the municipal budget.

FISCAL IMPACT:

      In statements to the Senate Budget and Appropriations Committee and the Assembly Appropriations Committee on April 2, and May 22, 1996, the State Treasurer indicated that the State estimates the amount by which public utilities gross receipts and franchise taxes have exceeded $960,000,000 in FY 1996 to be $45,000,000.

COMMITTEE AMENDMENTS:

      The committee amendments delete a special distribution to Wall Township.