[First Reprint]

 

SENATE COMMITTEE SUBSTITUTE FOR

SENATE, Nos. 498 and 927

 

STATE OF NEW JERSEY

 

 

ADOPTED MAY 9, 1996

 

 

Sponsored by Senators SCOTT, CAFIERO and ZANE

 

 

An Act concerning employer trip reduction programs, amending and supplementing various sections of the statutory law and repealing sections 1 through 13 and section 15 of P.L.1992, c.32.

 

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

 

      1. (New section) As authorized by Section 182(d)(1) of the Clean Air Act as amended by Pub.L.104-70, the Commissioner of Environmental Protection shall submit a revision of the State Implementation Plan submitted to the Environmental Protection Agency pursuant to the Clean Air Act removing provisions of the State Implementation Plan requiring employers to reduce work-related vehicle trips and miles traveled by employees.

 

      2. (New section) In order to certify to the Director of the Division of Taxation, in the Department of the 1[Treasurer] Treasury1, eligibility for the tax benefits provided under section 1 of P.L.1993, c.150 (C.27:26A-15) and section 1 of P.L.1993, c.108 (C.54A:6-23), the Commissioner of Transportation shall adopt regulations, pursuant to the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.), establishing the procedure by which an employer may register with the Department of Transportation as a participant in an employer trip reduction program and the criteria to be met by an employer trip reduction program using alternative means of commuting to receive certification for providing commuter transportation benefits.

      As used in this section:

      "Alternative means of commuting" means travel between a person's place of residence and place of employment or termini near those places, other than in a motor vehicle occupied by one person. Alternative means of commuting include, but are not limited to, public transportation, car pools, van pools, bus pools, ferries, bicycling, telecommuting and walking, which may be used in conjunction with such strategies as flextime, staggered work hours, compressed work weeks and like measures.

      "Commuter transportation benefit" means the cost to employers of providing benefits to an employee for utilizing an alternative means of commuting and the cost of providing services and facilities which would encourage or facilitate use by employees of alternative means of commuting. The benefit shall include, but not necessarily be limited to, the costs of parking by employees at park-and-ride lots.

 

      3. Section 1 of P.L.1993, c.150 (C.27:26A-15) is amended to read as follows:

      1. a. An [affected] employer that is a taxpayer subject to the provisions of the Corporation Business Tax Act (1945), P.L.1945, c.162 (C.54:10A-1 et seq.), the "Financial Business Tax Law (1946)," P.L.1946, c.174 (C.54:10B-1 et seq.), "The Savings Institution Tax Act," P.L.1973, c.31 (C.54:10D-1 et seq.), the tax imposed on marine insurance companies pursuant to R.S.54:16-1 et seq., the tax imposed on fire insurance companies pursuant to R.S.54:17-4 et al., the tax imposed on insurers generally, pursuant to P.L.1945, c.132 (C.54:18A-1 et seq.), the public utility franchise tax, public utilities gross receipts tax and public utility excise tax imposed pursuant to P.L.1940, c.4, and P.L.1940, c.5 (C.54:30A-16 et seq. and C.54:30A-49 et seq.), or that is a taxpayer in respect of a distributive share of partnership income under the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., which provides commuter transportation benefits as defined in section [3 of P.L.1992, c.32 (C.27:26A-3)] 2 of P.L. 19 , c. (C. )(now before the Legislature as this bill) shall be allowed a credit against that tax equal to 5% of the cost of commuter transportation benefits for the relevant accounting or privilege period, as appropriate, subject to the limitations of subsection b. of this section. For accounting or privilege periods beginning on or after January 1, 1995, but ending not later than December 31, 2004, the credit allowed under this section shall be 10% of the cost of commuter transportation benefits for the relevant accounting or privilege period, as appropriate, subject to the limitations of subsection b. of this section. In the case of a taxpayer receiving partnership income, an offset against that income subject to the limitations in paragraph (5) of subsection b. of this section shall be considered the credit.

      b. (1) The credit granted a taxpayer for an accounting or privilege period shall not exceed the per employee limit multiplied by the number of employees participating in alternative means of commuting at the work location. The per employee limit shall be $36 for the accounting or privilege periods beginning on and after January 1, 1994 but before January 1, 1995, and $72 for those periods thereafter. For those periods beginning on or after January 1, 1995, the Director of the Division of Taxation, in the Department of the Treasury, shall adjust the limit, rounded down to the nearest dollar, in proportion to the change in the average consumer price index for all urban consumers in the New York and Northeastern New Jersey and the Philadelphia areas, as reported by the United States Department of Labor, from calendar year 1994 to the calendar year ending immediately before the appropriate period.

      (2) The taxpayer may only claim a credit for providing commuter transportation benefits based upon a direct expenditure made after the taxpayer has registered with and the taxpayer’s employer trip reduction program been certified by the [department]Department of Transportation as prescribed in [subsection c. of section 5 of P.L.1992, c.32 (C.27:26A-5); provided that a taxpayer shall continue to be eligible for the credit as long as the taxpayer remains in substantial compliance with subsections d., e., f. and h. of section 5 of P.L.1992, c.32 (C.27:26A-5); and provided further that the commissioner may allow additional time for the taxpayer to comply with subsections d., e., f. and h. of section 5 of P.L.1992, c.32 (C.27:26A-5) before a credit amount is disallowed for an affected employer; however, a credit amount shall be disallowed if the taxpayer fails to comply with section 5 of P.L.1992, c.32 (C.27:26A-5) within three years from the due date of the tax return reflecting a liability against which a credit was claimed] section 2 of P.L.19 , c. (C.  )(now before the Legislature as this bill).

      (3) The amount of the credit allowed under this section for an accounting or privilege period shall not exceed 50% of the tax liability which would be otherwise due for any one of the taxes enumerated in subsection a. of this section after first applying the credits, if any, allowed under any other law and shall not reduce the amount of tax liability to less than the statutory minimum provided in subsection (e) of section 5 of P.L.1945, c.162 (C.54:10A-5), section 3 of P.L.1946, c.174 (C.54:10B-3) or section 3 of P.L.1973, c.31 (C.54:10D-3), as may be applicable.

      (4) A taxpayer having liability for more than one of the taxes enumerated in subsection a. of this section for an accounting or privilege period shall allocate the credit amount available for that period to the liabilities for that period in the proportion that each liability bears to the total of the liabilities for that period, and each apportioned amount of credit shall be applied to only one amount of liability.

      (5) A partnership shall not be allowed a credit under this section directly. A partnership shall be entitled to reduce total partnership income distributed to the partners and subject to tax under subsection k. of N.J.S.54A:5-1 by the lesser of 71.5 percent of the amount of commuter transportation benefits provided pursuant to law or $515 for each employee receiving such benefits. For accounting and privilege periods beginning on or after January 1, 1995, but ending no later than December 31, 2004, the reduction to partnership income allowed under this section shall be the lesser of 143 percent of the cost of commuter transportation benefits provided or $1,030 for each employee receiving such benefits for the relevant accounting or privilege period, as appropriate, subject to the limitations of subsection b. of this section.

      1(6) Notwithstanding the provisions of paragraph (1) of this subsection, the per employee limit for a taxpayer which has filed a compliance plan with the Department of Transportation required by section 5 of P.L.1992, c.32 (C.27:26A-5) on or before the effective date of P.L.19 , c. (now before the Legislature as this bill) shall be twice the per employee limit as determined pursuant to paragraph (1) of this subsection. The Department of Transportation shall certify to the Director of the Division of Taxation a list of all employers which are eligible to claim the per employee limit under this paragraph.1

      c. Each employee who receives money towards commuter transportation benefits from the employee's employer as an advance, a reimbursement, or both, shall furnish suitable proof to the employer, in the form of receipts, ticket stubs or the like, that the employee utilized monies provided by the employer for an alternative means of commuting, as defined pursuant to section [3 of P.L.1992, c.32 (C.27:26A-3)]2 of P.L.19 , c. (C. )(now before the Legislature as this bill).

      d. For the purposes of verifying eligibility for the credit, the [commissioner] Commissioner of Transportation shall certify to the Director of the Division of Taxation a list of those employers which have registered with the department[, or have an approved compliance plan or an approved amended compliance plan]and have [an approved] a certified employer trip reduction program. The list shall be provided to the Director of the Division of Taxation within 90 days of registration [and within 210 days of each submission of a compliance plan or each amended compliance plan].

      e. The taxpayer shall file with the department a schedule of the expenditures for which the taxpayer has claimed a credit pursuant to this section on any tax return filed with the Director of the Division of Taxation, in such form and pursuant to such rules as shall be prescribed by the commissioner in consultation with the Director of the Division of Taxation. [The department shall provide the Director of the Division of Taxation with the schedule and such other information as is required pursuant to subsection j. of section 5 of P.L.1992, c.32 (C.27:26A-5).]

(cf: P.L.1993, c.150, s.1)

 

      4. Section 1 of P.L.1993, c.108 (C.54A:6-23) is amended to read as follows:

      1. a. For the purposes of the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., "gross income" shall not include employer provided commuter transportation benefits as defined pursuant to section [3 of P.L.1992, c.32 (C.27:26A-3)] 2 of P.L. 19 , c. (C.   )(now before the Legislature as this bill) , up to and including the limit per taxable year per employee pursuant to subsection b. of this section. Should an employee receive commuter transportation benefits in excess of those limits in a taxable year, only the amount in excess of those limits shall be included in gross income. If an employee receives money towards commuter transportation benefits from the employee's employer, as an advance, a reimbursement, or both, the employee shall furnish suitable proof to the employer in the form of receipts, ticket stubs or the like that the employee used the employer provided money for alternative means of commuting as defined pursuant to section [3 of P.L.1992, c.32 (C.27:26A-3)] 2 of P.L.19   , c. (C. )(now before the Legislature as this bill).

      b. The limit per taxable year per employee shall be $720 for the taxable years beginning on and after January 1, 1993 but before January 1, 1994. For taxable years thereafter, the director shall adjust the limit, rounded down to the nearest $5, in proportion to the change in the average consumer price index for all urban consumers in the New York and Northeastern New Jersey and the Philadelphia areas, as reported by the United States Department of Labor, from calendar year 1993 to the calendar year ending immediately before the taxable year.

      c. The exclusion provided by subsection a. of this section shall not apply to any commuter transportation benefit unless such benefit is provided in addition to and not in lieu of any compensation otherwise payable to the employee.

      1d. Notwithstanding the provisions of subsection b. of this section the limit per taxable year for an employee receiving commuter transportation benefits on the effective date of P.L.19 , c. (now before the Legislature as this bill) from an employer which filed a compliance plan with the Department of Transportation required by section 5 of P.L.1992, c.32 (C.27:26A-5) on or before the effective date of P.L.19 , c. (now before the Legislature as this bill) shall be twice the limit as determined by subsection b. of this section. An employer which filed a compliance plan on or before the effective date of this P.L.19 , c. (now before the Legislature as this bill) shall certify to the Director of the Division of Taxation a list of employees receiving commuter transportation benefits on the effective date of P.L.19 , c. (now before the Legislature as this bill).1

(cf: P.L.1993, c.108, s.1)

 

      5. N.J.S.54A:7-2 is amended to read as follows:

      54A:7-2. Information statement for employee or recipient of other payments. Every employer or payor of a pension or annuity required to deduct and withhold tax under this act from the wages of an employee or from the payment of a pension or annuity, or an employer who would have been required so to deduct and withhold tax if an employee had claimed no more than one withholding exemption, shall furnish to each such employee, or pension or annuity recipient or the estate thereof, in respect of the wages or pension or annuity payments paid by such employer or payor to such employee or pension or annuity recipient during the calendar year on or before February 15 of the succeeding year, or, if his employment or pension or annuity is terminated before the close of such calendar year, within 30 days from the date on which the last payment of the wages or pension or annuity is made, a written statement as prescribed by the director showing the amount of wages or pension or annuity payments paid by the employer or payor to the employee or pension or annuity recipient, the cost of commuter transportation benefits, as defined pursuant to section [3 of P.L.1992, c.32 (C.27:26A-3)]2 of P.L.19 , c. (C. )(now before the Legislature as this bill) , excludable by the employee pursuant to section 1 of P.L.1993, c.108 (C.54A:6-23), and the cost of such benefits not so excludable, provided by the employer to the employee, the amount deducted and withheld as tax, the amount deducted and withheld as worker contributions for unemployment and disability insurance as provided under the New Jersey Unemployment Compensation Law, and such other information as the director shall prescribe.

(cf: P.L.1993, c.108, s.2)

 

      6. Sections 1 through 13 (inclusive) and section 15 of P.L.1992, c.32 (C.27:26A-1 through 13 and 27:26A-14) are repealed.

 

      7. This act shall take effect immediately.

 

 

 

Repeals mandatory employer trip reduction programs; authorizes tax benefits for voluntary programs.