ASSEMBLY, No. 1306

STATE OF NEW JERSEY

Introduced Pending Technical Review by Legislative Counsel

PRE-FILED FOR INTRODUCTION IN THE 1996 SESSION

By Assemblyman BROWN

An Act extending the expiration date and limiting the enactment and use of certain local payroll taxes, and amending P.L.1970, c.326.

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

    1. Section 19 of P.L.1970, c.326 (C.40:48C-19) is amended to read as follows:

    19. No tax shall be imposed under any ordinance adopted pursuant to this article with respect to services performed prior to January 1, 1971, or in a calendar quarter prior to that in which the ordinance is adopted [or on or after January 1, 1996, but any such ordinance shall remain in effect with respect to the right of the municipality to receive reports and enforce and collect taxes due thereunder for any period prior to January 1, 1996] nor shall a tax be imposed unless the municipality has within two years prior to July 1, 1996 collected taxes or adopted an ordinance imposing a tax. Any municipality making use of its authority to implement a payroll tax pursuant to this article, which had not already imposed such a tax in the two-year period prior to July 1, 1995, shall use all of the proceeds of such tax solely to satisfy property tax refunds or to pay principal and interest on fiscal year adjustment bonds, and for no other purpose.

     No payroll tax imposed pursuant to this article shall be enforced or collected for any period after December 31, 1997, but any such ordinance imposing the tax shall remain in effect with respect to the right of the municipality to receive reports and enforce and collect taxes due thereunder for any period prior to January 1, 1998.

(cf: P.L.1994, c.28, s.2.)

    2. This act shall take effect immediately.

STATEMENT

    This bill extends the payroll tax portion of the "Local Tax Authorization Act," and would enable Jersey City to impose a payroll tax for the limited purpose of satisfying judgments for property tax appeals ordering property tax refunds and for the payment of principal and interest on fiscal year adjustment bonds. Revenues from this tax would help Jersey City satisfy judgments on tax appeals resulting from excessive commercial assessments. The bill extends the authority to impose a payroll tax through the period ending December 31, 1997.

Extends expiration date and limits enactment and use of certain payroll taxes under "Local Tax Authorization Act."