ASSEMBLY, No. 826

STATE OF NEW JERSEY

Introduced Pending Technical Review by Legislative Counsel

PRE-FILED FOR INTRODUCTION IN THE 1996 SESSION

By Assemblyman ARNONE

An Act providing for the refunding of motor fuel tax paid by school buses and other buses operated for the transportation of enrolled children and adults, amending R.S.54:39-66.

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

    1. R.S.54:39-66 is amended to read as follows:

    54:39-66. Any person:

    (1) Who shall use any fuels as herein defined for any of the following purposes:

    (a) (Deleted by amendment.)

    (b) Autobuses while being operated over the highways of this State in those municipalities to which the operator has paid a monthly franchise tax for the use of the streets therein under the provisions of R.S.48:16-25 and autobuses while being operated over the highways of this State in a regular route bus operation as defined in R.S.48:4-1 and under operating authority conferred pursuant to R.S.48:4-3, or while providing bus service under a contract with the New Jersey Transit Corporation or under a contract with a county for special or rural transportation bus service subject to the jurisdiction of the New Jersey Transit Corporation pursuant to P.L.1979, c.150 (C.27:25-1 et seq.), and autobuses providing commuter bus service which receive or discharge passengers in New Jersey and buses operated for the transportation of enrolled children and adults referred to in subsection c. of R.S.48:4-1. For the purpose of this paragraph "commuter bus service" means regularly scheduled passenger service provided by motor vehicles whether within or across the geographical boundaries of New Jersey and utilized by passengers using reduced fare, multiple ride or commutation tickets and shall not include charter bus operations or special bus operations as defined in R.S.48:4-1 [or buses operated for the transportation of enrolled children and adults referred to in subsection c. of R.S.48:4-1],

    (c) Agricultural tractors not operated on a public highway,

    (d) Farm machinery,

    (e) Aircraft,

    (f) Ambulances,

    (g) Rural free delivery carriers in the dispatch of their official business,

    (h) Such vehicles as run only on rails or tracks, and such vehicles as run in substitution therefor,

    (i) Such highway motor vehicles as are operated exclusively on private property,

    (j) Motor boats or motor vessels used exclusively for or in the propagation, planting, preservation and gathering of oysters and clams in the tidal waters of this State,

    (k) Motor boats or motor vessels used exclusively for commercial fishing,

    (l) Motor boats or motor vessels, while being used for hire for fishing parties or being used for sightseeing or excursion parties,

    (m) Cleaning,

    (n) Fire engines and fire-fighting apparatus,

    (o) Stationary machinery and vehicles or implements not designed for the use of transporting persons or property on the public highways,

    (p) Heating and lighting devices,

    (q) Fuels previously taxed under this chapter and later exported or sold for exportation from the State of New Jersey to any other state or country; provided, proof satisfactory to the director of such exportation is submitted,

    (r) Motor boats or motor vessels used exclusively for Sea Scout training by a duly chartered unit of the Boy Scouts of America,

    (s) Emergency vehicles used exclusively by volunteer first-aid or rescue squads, and

    (t) Diesel fuel, the increase in the tax thereof as imposed by P.L.1984, c.73, as used by passenger automobiles and motor vehicles of less than 5,000 pounds gross weight; and

    (2) Who shall have paid the tax for such fuels, hereby required to be paid, shall be reimbursed and repaid the amount of tax so paid upon presenting to the director an application for such reimbursement or repayment, in form prescribed by the director, which application shall be verified by a declaration of the applicant that the statements contained therein are true. Such application for reimbursement or repayment shall be supported by an invoice, or invoices, showing the name and address of the person from whom purchased, the name of the purchaser, the date of purchase, the number of gallons purchased, the price paid per gallon, and an acknowledgment by the seller that payment of the cost of the fuel, including the tax thereon, has been made. Such invoice, or invoices, shall be legibly written and shall be void if any corrections or erasures shall appear on the face thereof.

    The director may, in his discretion, permit a distributor entitled to a refund under the provisions of this section to take credit therefor, in lieu of such refund, in such manner as the director may require, on a report filed pursuant to R.S.54:39-27.

    Any refund granted to a person under subsection (1)(e), for fuel used in aircraft, shall be paid from the moneys deposited in the Airport Safety Fund established by section 4 of the "New Jersey Airport Safety Act of 1983," P.L.1983, c.264 (C.6:1-92). Such refunds shall be granted on an annual basis.

(cf: P.L.1992, c.23, s.45)

    2. This act shall take effect July 1 next following enactment.

STATEMENT

    This bill adds operators of school buses to the list of motor fuel users that are allowed to obtain refunds of motor fuel tax imposed on their motor fuel purchases. The motor fuels tax established pursuant to R.S.54:39-1 et seq. effectively provides for "exemptions" from the tax for certain governmental and public safety and commercial uses by providing a system of refunds based on documentation of the amount fuel and price paid by the user. Under the current law, motor fuel purchases by school districts and other governmental entities are already exempt. This exemption will affect school buses which are owned by private operators and transport pupils under contract with school districts or nonpublic schools and buses owned and operated by nonpublic schools. The exemption also extends to buses that transport children to day camps, nursery schools, child care centers and similar educational facilities.

Allows operators of school buses to obtain refunds of the motor fuels tax.