ASSEMBLY, No. 1584
STATE OF NEW JERSEY
INTRODUCED FEBRUARY 22, 1996
By Assemblyman WISNIEWSKI
An Act concerning the apportionment value of certain public utility property subject to closure, supplementing P.L.1940, c.5 (C.54:30A-58).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. Notwithstanding the provisions of section 10 of P.L.1940, c.5 (C.54:30A-58) or any other provision of law to the contrary, for the purpose of apportioning public utility taxes, the unit value of an electric generating station included in the scheduled property of a public utility subject to closure shall be proportionately reduced during the four years after the closure of that scheduled property, based upon the generating capacity of the property in the year preceding the closure
b. Notwithstanding the provisions of section 10 of P.L.1940, c.5 (C.54:30A-58) or any other provision of law to the contrary, for the purpose of apportioning public utility taxes, the unit value of a gas manufacturing plant included in the scheduled property of a public utility subject to closure shall be proportionately reduced during the four years after the closure of that scheduled property, based upon the generating capacity of the property in the year preceding the closure
2. This act shall take effect immediately.
STATEMENT
Under current law, when an electric generating station or a gas manufacturing plant closes the municipality where the utility is located incurs an immediate elimination of public utility tax allocation payments. For many municipalities this abrupt reduction in allocation payments causes an undue hardship.
This legislation would phase out these payments over five years by proportionately reducing the value of the utility's closed property. This will ensure a gradual reduction in the allocation of payments to the affected municipality.
Phases out over five years the public utility tax apportionment value of electric generating stations and gas manufacturing plants subject to closure.