SENATE, No. 616
STATE OF NEW JERSEY
INTRODUCED FEBRUARY 5, 1996
By Senator SCHLUTER
An Act increasing the amount of the checkoff on income tax returns for contributions to the "Gubernatorial Elections Fund" and amending N.J.S.54A:9-25.1 and P.L.1980, c.74.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. N.J.S.54A:9-25.1 is amended to read as follows:
54A:9-25.1. a. There is hereby established within the General Treasury a special fund to be known as the "Gubernatorial Elections Fund." Where a taxpayer has indicated on a return filed pursuant to this act that [one dollar] one dollar, three dollars, or five dollars of his taxes [is] are to be reserved for such fund, the Treasurer shall credit such fund with the amount so indicated from the taxes collected under the provisions of this act. The fund shall be available for appropriation pursuant to section 5 of P.L.1974, c.26 (C.19:44A-30), provided however that establishment of the "Gubernatorial Elections Fund" shall in no way affect the operation of said section.
Blank forms of return provided by the director for use in reporting under this act shall include, in a conspicuous place, the opportunity for a taxpayer to indicate his preference under this section in substantially the following manner:
Yes No
"Gubernatorial Do you wish to[designate]
Elections Fund" designate[$1] a portion of your taxes for this fund? If so, please indicate whether the amount designated is $1[ ],
$3[ ], or $5[ ].
NOTE: If you check If joint return, does your
the "Yes" box(es) spouse wish to designate
it will not increase [$1] a portion of
your tax or reduce his or her taxes for the fund?
your refund. If so, please indicate whether
the amount designated is $1[ ],
$3[ ], or $5[ ].
b. (1) Not later than the fifth day following receipt from the New Jersey Election Law Enforcement Commission of the commission's certification, as required by subsection e. of section 19 of P.L.1980, c.74 (C.19:44A-7.1), of the amount of the percentage of change in the index of prices affecting the overall costs of election campaigning, the State Treasurer shall for the purposes of this section compute, for the third of the alternative amounts among which a taxpayer may choose in designating the amount of tax, if any, to be reserved to be credited to the Gubernatorial Elections Fund, an "adjusted standard value". In the year 2000, that value shall be computed by multiplying the percentage of change certified in that year, plus 100%, times five dollars; in each fourth year thereafter, that value shall be computed by multiplying the percentage of change certified in such subsequent year, plus 100%, times (a) in a computation year four years after a year in which the third alternative checkoff amount was increased pursuant to the provisions of paragraph (2) of this subsection, the value of that increased amount, and (b) in any other computation year, the "adjusted standard value" as determined in the fourth year preceding that computation year.
(2) Notwithstanding the provisions of subsection a. of this section, for each of the four taxable years commencing on or after January 1 following a year in which an "adjusted standard value" is computed as prescribed under paragraph (1) of this subsection, the third alternative amount from which a taxpayer may choose in designating the amount of tax, if any, to be reserved to be credited to the Gubernatorial Elections Fund under that subsection a. shall be the whole-dollar amount that is nearest to the "adjusted standard value" amount so computed; if the "adjusted standard value" amount is equidistant between one whole-dollar amount and the next greater whole-dollar amount, the third alternative amount of tax that may annually be so reserved in those four taxable years shall be the lesser of those two whole-dollar amounts. For any four taxable years in which the third alternative amount is not increased to an amount greater than that applicable during the preceding four taxable years, the first and second such alternative amounts shall also remain unchanged. For any four taxable years in which the third alternative amount is increased to an amount greater than that applicable during the preceding four taxable years, the first and second such alternative amounts shall each be increased by an amount equal to the amount of such increase in that third alternative amount.
On any blank form of return for such taxable years, the text of the questions prescribed under subsection a. hereof concerning a taxpayer's wish to make such a reservation shall be revised in accordance with the provisions of this subsection.
(cf: P.L.1980, c.74, s.16)
2. Section 19 of P.L.1980, c.74 (C.19:44A-7.1) is amended to read as follows:
19. a. For the purpose of ensuring the continuing adequacy of the limits set by law upon contributions, expenditures and certain other amounts relating to campaigns for nomination or election to the office of Governor, the Election Law Enforcement Commission is authorized and directed to adjust the limits on those amounts as provided herein. The limitation amounts thus adjusted shall apply to the primary and general elections for the office of Governor to be held in the year following the year in which that adjustment is required hereunder to be made.
b. The commission shall establish an index reflecting the changes occurring in the general level of prices of particular goods and services, including but not limited to goods and services within such categories of expenditure as mass media and other forms of public communication, personnel, rent, office supplies and equipment, data processing, utilities, travel and entertainment, and legal and accounting services, directly affecting the overall costs of election campaigning in this State. The index shall be weighted in accordance with the impact in the preceding general election for the office of Governor of the respective prices of each of those several goods and services upon those overall costs. Not later than December 1 of each year preceding any year in which a general election is to be held to fill the office of Governor for a four-year term, the commission shall determine the percentage of change in this index which shall have occurred during the four-year period ending with the year of the gubernatorial election, and shall adjust the amounts, as set forth in subsection c. of this section, which shall be applicable under P.L.1973, c.83 (C.19:44A-1 et seq.) to the primary and general elections for the office of Governor to be held in the following year by multiplying that percentage of change, plus 100%, times the amounts applicable thereunder to the primary and general elections for that office held in the third year preceding the year in which that December 1 occurs; provided that any amount so adjusted shall be rounded as follows: if the adjusted amount is less than $20,000 and is not an exact multiple of $100, to the next higher exact multiple of $100; if the adjusted amount is more than $20,000 but less than $200,000 and is not an exact multiple of $1,000, to the next higher exact multiple of $1,000; if the adjusted amount is more than $200,000 but less than $2,000,000 and is not an exact multiple of $10,000, to the next higher exact multiple of $10,000; and if the adjusted amount is more than $2,000,000 but less than $20,000,000 and is not an exact multiple of $100,000, to the next higher exact multiple of $100,000.
c. The amounts subject to adjustment as provided under this section shall be:
(1) The maximum amount of contributions permitted to be made to any candidate for nomination for election or for election to the office of Governor pursuant to section 4 of P.L.1974, c.26 (C.19:44A-29) and the amount of contributions with respect to which a qualified candidate for nomination for election or for election to that office shall be eligible to receive moneys from the fund for election campaign expenses pursuant to section 8 of P.L.1974, c.26 (C.19:44A-33);
(2) The amount of deposits or expenditures required to have been made by a candidate for nomination for election or for election to the office of Governor in order for that candidate to be a qualified candidate under subsection m. of section 3 of P.L.1973, c.83 (C.19:44A-3) and the amount of such deposits into such a candidate's bank account for which no payment of public funds is to be made pursuant to section 8 of P.L.1974, c.26 (C.19:44A-33);
(3) The maximum amount which may be spent in aid of the candidacy of a qualified candidate for the office of Governor in a primary or a general election pursuant to section 7 of P.L.1973, c.83 (C.19:44A-7); and
(4) The maximum amount which any qualified candidate for nomination for election in a primary election or for election to the office of Governor in a general election may receive from the fund for election campaign expenses pursuant to section 8 of P.L.1974, c.26 (C.19:44A-33).
d. Not later than December 15 of each year preceding any year in which a general election is to be held to fill the office of Governor for a four-year term, the commission shall report to the Legislature its adjustment of limits in accordance with the provisions of this section. Whenever, following the transmittal of that report, the commission shall have had notice that a person has declared as a candidate for nomination for election or for election to the office of Governor in the forthcoming primary or general election, it shall promptly notify that candidate of the amounts of those adjusted limits.
e. Not later than December 3 of each year in which it is required under subsection b. hereof to determine the percentage of change in the index of prices affecting the overall costs of election campaigning, the commission shall certify to the State Treasurer the amount of that percentage of change so determined.
(cf: P.L.1989, c.4, s.3)
3. This act shall take effect on January 1 of the year following enactment; the amendatory provisions of subsection a. of N.J.S.54A:9-25.1 in section 1 shall be applicable to the taxable years commencing on or after that January 1, and the amendatory provisions of subsection b. of N.J.S.54A:9-25.1 in section 1 shall be inoperative until November 30, 2000.
STATEMENT
This bill amends the provision of the "New Jersey Gross Income Tax Act" governing the amount that a taxpayer may elect to contribute from the person's State income tax liability to the "Gubernatorial Elections Fund", which is the fund from which moneys are paid to support public financing for qualified primary and general election candidates for the office of Governor. The bill would replace the current single contribution option of $1 with three alternative levels of contribution, $1, $3, and $5.
The bill also provides for future adjustments in those checkoff options to reflect the increase in the cost of living. Computation of the amount of the increase would be done quadrennially on the same schedule as applies to the calculation of the cost-of-living adjustments currently applicable to other amounts under the gubernatorial campaign finance statute; the actual checkoff amount would be set by rounding the adjusted figure so computed to the nearest whole dollar amount.
The bill would take effect on the January 1 following enactment and be applicable to the taxes due for the year of enactment.
Amends income tax return checkoff designating portion of tax for "Gubernatorial Elections Fund" to add $3 and $5 checkoff options; provides for adjustment of checkoff amounts for inflation.