ASSEMBLY, No. 1613

STATE OF NEW JERSEY

INTRODUCED FEBRUARY 29, 1996

By Assemblywoman TURNER and Assemblyman WISNIEWSKI

An Act eliminating the State retention of the municipal share of gross receipts and franchise taxes, amending P.L.1991, c.184.

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

    1. Section 27 of P.L.1991, c.184 (C.54:30A-24.4) is amended to read as follows:

    27. a. Commencing with State fiscal year 1993 and ending with State fiscal year 1996, amounts which annually are not apportioned or distributed for payment to municipalities and which are retained for State government use from the taxes paid pursuant to the provisions of subsection (a) of section 3 of P.L.1940, c.4 (C.54:30A-18), subsections a. and b. of section 2 of P.L.1991, c.184 (C.54:30A-18.6), section 9 of P.L.1940, c.4 (C.54:30A-24), subsections (a) and (b) of section 6 of P.L.1940, c.5 (C.54:30A-54), and taxes paid by gas and electric light, heat and power corporations pursuant to the provisions of subsection a. of section 10 of P.L.1991, c.184 (C.54:30A-54.6), subsections a. and b. of section 12 of P.L.1991, c.184 (C.54:30A-54.8), and section 14 of P.L.1940, c.5 (C.54:30A-62), shall not exceed the amount remaining unapportioned or undistributed and retained for State government use from those revenues in State fiscal year 1992, net of any increase in amounts paid and retained for State use pursuant to subsections a. and b. of section 2 of P.L.1991, c.184 (C.54:30A-18.6) and section 9 of P.L.1940, c.4 (C.54:30A-24) and paid and retained for State use from gas and electric light, heat and power corporations pursuant to subsections a. and b. of section 12 of P.L.1991, c.184 (C.54:30A-54.8) and section 14 of P.L.1940, c.5 (C.54:30A-62). This section shall not apply to taxes paid or prepaid pursuant to provisions of general law identifying such taxes for State use, except for taxes prepaid in 1995 and each year thereafter pursuant to subsection b. of section 2 of P.L.1991, c.184 (C.54:30A-18.6) and subsection b. of section 12 of P.L.1991, c.184 (C.54:30A-54.8).

    b. Commencing with State fiscal year 1997 and thereafter, there shall be no amounts which annually are not apportioned or distributed for payment to municipalities and which are retained for State government use from such taxes paid.

(cf: P.L.1991, c.184, s.27)

    2. Section 28 of P.L.1991, c.184 (C.54:30A-61.4) is amended to read as follows:

    28. a. Commencing with State fiscal year 1993 and ending with State fiscal year 1996, amounts which annually are not apportioned or distributed for payment to municipalities and which are retained for State government use from the taxes paid pursuant to the provisions of subsection (a) of section 3 of P.L.1940, c.4 (C.54:30A-18), subsections a. and b. of section 2 of P.L.1991, c.184 (C.54:30A-18.6), section 9 of P.L.1940, c.4 (C.54:30A-24), subsections (a) and (b) of section 6 of P.L.1940, c.5 (C.54:30A-54), and taxes paid by gas and electric light, heat and power corporations pursuant to the provisions of subsection a. of section 10 of P.L.1991, c.184 (C.54:30A-54.6), subsections a. and b. of section 12 of P.L.1991, c.184 (C.54:30A-54.8), and section 14 of P.L.1940, c.5 (C.54:30A-62), shall not exceed the amount remaining unapportioned or undistributed and retained for State government use from those revenues in State fiscal year 1992, net of any increase in amounts paid and retained for State use pursuant to subsections a. and b. of section 2 of P.L.1991, c.184 (C.54:30A-18.6) and section 9 of P.L.1940, c.4 (C.54:30A-24) and paid and retained for State use from gas and electric light, heat and power corporations pursuant to subsections a. and b. of section 12 of P.L.1991, c.184 (C.54:30A-54.8) and section 14 of P.L.1940, c.5 (C.54:30A-62). This section shall not apply to taxes paid or prepaid pursuant to provisions of general law identifying such taxes for State use, except for taxes prepaid in 1995 and each year thereafter pursuant to subsection b. of section 2 of P.L.1991, c.184 (C.54:30A-18.6) and subsection b. of section 12 of P.L.1991, c.184 (C.54:30A-54.8).    b. Commencing with State fiscal year 1997 and thereafter, there shall be no amounts which annually are not apportioned or distributed for payment to municipalities and which are retained for State government use from such taxes paid.

(cf: P.L.1991, c.184, s.28)

    3. This act shall take effect immediately.

STATEMENT

    This bill eliminates the State retention of the municipal share of gross receipts and franchise taxes commencing with the State fiscal year 1997. The public utility gross receipts and franchise taxes were enacted in 1940 to provide for a uniform assessment of the property of public utilities. Taxes were billed by and paid to the municipalities. In 1980 amendments were made to provide for the State to bill and collect the taxes, and since 1980 there has been controversy concerning the distribution to municipalities. P.L. 1991, c.184 capped the amount of State retention at the fiscal year 1992 retention amount. Under this bill there shall be no State retention of municipal share gross receipts and franchise tax revenues in FY 1997 and thereafter.

Eliminates the State retention of municipal share of public utilities gross receipts and franchise taxes.