ASSEMBLY, No. 2548
STATE OF NEW JERSEY
INTRODUCED DECEMBER 9, 1996
By Assemblyman KAVANAUGH
An Act imposing a tax on sales of certain sports tickets, supplementing Title 54 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. There is imposed a tax of $2.00 on the sale of each ticket to each home game of a professional minor league baseball team franchise playing at a publicly financed facility that is the home stadium of the franchise for any period for which the National Association of Professional Baseball Leagues (minor league baseball) fails to consent, pursuant to section 2 of this act, to the establishment of any other qualifying minor league franchise at any point outside of a radius of 25 miles of the team's home stadium under any league rule requiring such consent for the establishment of another minor league team outside that 25 mile radius. The tax imposed pursuant to this section shall be separately stated to purchasers and shall not be included in the receipts subject to the taxes imposed under the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.), or the tax imposed under P.L.1947, c.71 (C.40:48-8.15 et seq.).
b. All taxes collected pursuant to this act shall be retained by the State Treasurer for deposit in the fund established pursuant to section 3 of this act to be used and distributed according to the terms therein provided.
c. For the purposes of this section:
"Publicly financed" means the acquisition by purchase, lease, or otherwise, and the planning, erection, acquisition, improvement, construction, reconstruction, development, extension, or rehabilitation of any stadium, the acquisition by purchase, lease, or otherwise, and the development of any real or personal property for use in connection with a facility including any rights or interests therein; the procurement of engineering, inspection, planning, legal, financial, or other professional services and the administrative, organizational, operating or other expenses incident to the financing, completing, and placing into service of any facility with the use of land, buildings, improvements, or rights donated or financed by loans or otherwise by the State, a local government unit of this State, or any agency or authority thereof; and
"Qualifying minor league franchise" means a minor league franchise under ownership or a contract to purchase if the owner or purchasing entity has the right to use a facility that is in compliance with the physical facility requirements of the National Association of Professional Baseball Leagues (minor league baseball).
2. A qualifying minor league franchise shall, on or after the date on which it becomes a qualifying minor league franchise, request by certified mail the consent of the National Association of Professional Baseball Leagues (minor league baseball) to its location at a specified location in this State that is outside a radius of 25 miles of an existing teams's home stadium and shall forward, by certified mail, a copy of that request to the State Treasurer. The National Association of Professional Baseball Leagues (minor league baseball) may, notwithstanding any State law to the contrary, forward, by certified mail, a copy of its consent, if any, to the location of the qualifying team directly to the State Treasurer. The period beginning on and after the 60th day following the State Treasurer's receipt of the request letter to the National Association of Professional Baseball Leagues (minor league baseball) and ending on the day of the State Treasurer's receipt of a copy of the National Association of Professional Baseball Leagues' (minor league baseball) consent to the location of the qualifying minor league franchise shall be the "period for which the National Association of Professional Baseball Leagues (minor league baseball) fails to consent" for the purposes of section 1 of this act.
3. There is created a fund to be known as the "County Recreation Activities Fund" to be the repository for all monies paid to the State Treasurer pursuant to this act. The Legislature shall annually appropriate monies in the fund to counties contiguous to a county in which is located an existing franchise, allocated on the basis of population, for youth recreational programs.
4. a. The Director of the Division of Taxation shall collect and administer any tax imposed pursuant to the provisions of this act.
b. A vendor of tickets subject to tax pursuant to section 1 of this act shall collect the tax from the purchaser when collecting the charge for the ticket to which it applies, and act shall on or before the dates required pursuant to section 17 of P.L.1966, c.30 (C.54:32B-17), forward to the director the tax collected in the preceding month and make and file a return for the preceding month with the director on any form and containing any information as the Director of the Division of Taxation in the Department of the Treasury shall prescribe by rule or regulation as necessary to determine liability for the tax in the preceding month during which the person was required to collect the tax.
c. The director may permit or require returns to be made covering other periods and upon any dates as the director may specify. In addition, the director may require payments of tax liability at any intervals and based upon any classifications as the director may designate. In prescribing any other periods to be covered by the return or intervals or classifications for payment of tax liability, the director may take into account the dollar volume of tax involved as well as the need for ensuring the prompt and orderly collection of the tax imposed.
d. The director may require amended returns to be filed within 20 days after notice and to contain the information specified in the notice.
e. The director shall determine and certify to the State Treasurer on a monthly basis the amount of revenues payable to the fund.
f. The tax imposed by this act shall be governed by the provisions of the "State Tax Uniform Procedure Law," R.S.54:48-1 et seq. In carrying out the provisions of this act, the director shall have all the powers granted pursuant to P.L.1966, c.30 (C.54:32B-1 et seq.).
5. This act shall take effect immediately but remain inoperative until the first day of the second month following enactment.
STATEMENT
This bill will encourage the establishment of minor league baseball franchises in New Jersey to promote economic development and recreational opportunities.
This bill imposes a $2.00 per ticket tax on sales of baseball tickets by the owners of minor league baseball teams that play in publicly financed stadiums if the National Association of Professional Baseball Leagues (minor league baseball) restricts the ability of other minor league baseball franchises to locate outside of a reasonable distance from an existing team's home stadium. Current minor league baseball territorial rules allow existing owners to prohibit other teams from operating at any location in any county that is contiguous to the home stadium of the team that is already operating. This rule discriminates against high population density states, such as New Jersey, which have an adequate population to support a minor league baseball franchise located in a county contiguous to an existing team.
This bill defines a qualifying minor league baseball franchise as a team that has received permission to use a stadium that is no less than 25 miles from the publicly financed stadium of the existing team.
The proceeds from the tax will be distributed to the counties contiguous to the county of the existing team, to support youth recreational programs.
Imposes $2 per ticket tax on certain minor league baseball franchises.