SENATE, No. 875

 

STATE OF NEW JERSEY

 

INTRODUCED MARCH 7, 1996

 

 

By Senator BASSANO

 

 

An Act eliminating certain penalties for the late filing of motor fuels use tax returns, amending P.L.1963, c.44.

 

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

 

    1. Section 11 of P.L.1963, c.44 (C.54:39A-11) is amended to read as follows:

    11. a. The examination of returns and the assessment of additional taxes, penalties and interest shall be as provided by the State Tax Uniform Procedure Law, R.S.54:48-1 et seq., except as specifically provided pursuant to P.L.1963, c.44 (C.54:39A-1 et seq.).

    b. Notwithstanding the provisions of R.S.54:49-1 to the contrary, for the taxes imposed or collected pursuant to P.L.1963, c.44 (C.54:39A-1 et seq.), no assessment of a deficiency in tax and no levy or proceeding in court for its collection shall be made or begun, except as otherwise provided in R.S.54:49-5 and R.S.54:49-7, until 30 days after a notice of deficiency has been mailed to the taxpayer and the time for the filing of a protest with the director has expired, or, if a protest with respect to the taxable period has been filed with the director, until the decision of the director has become final.

    c. Notwithstanding the provisions of subsection a. of R.S.54:49-18 to the contrary, a taxpayer may appeal a finding or assessment of the director within 30 days after the giving of the notice of finding or assessment.

    d. (1) Notwithstanding the provisions of R.S.54:49-4 or R.S.54:49-9 to the contrary, there shall be assessed a penalty of $50 or 10% of the taxes due, whichever is greater, for the failure to file a report for a reporting period for which tax is due, for the filing of a late report for a reporting period for which tax is due or for the underpayment of taxes due.

    (2) Notwithstanding the provisions of R.S.54:49-11 to the contrary, the director may waive the penalties imposed pursuant to paragraph (1) of this subsection if the director determines there is reasonable cause for the failure to file a report, for the filing of a late report or for the underpayment of taxes due.

    e. (1) Notwithstanding the provisions of R.S.54:49-3 or R.S.54:49-6 to the contrary, the director shall assess interest at the rate of 1% per month or part thereof, from the date the tax was due until the tax is paid.

    (2) The director shall waive the payment of any part of any interest attributable to the taxpayer's reasonable reliance on erroneous advice furnished to the taxpayer in writing by an employee of the Division of Motor Vehicles acting in the employee's official capacity, provided that the interest did not result from a failure of the taxpayer to provide adequate or accurate information.

(cf: P.L.1995, c.347, s.8)

 

    2. This act shall take effect immediately and apply to returns due after the later of September 30, 1996, or the thirtieth day following enactment.

 

STATEMENT

 

    This bill eliminates the motor fuels use tax late filing penalty for taxpayers that have no liability.

    New Jersey provides for the maintenance of its highways through the imposition of a motor fuel tax on all fuel sold in the State. To ensure that large commercial motor vehicles that use New Jersey highways but purchase their fuel outside of New Jersey also pay their fair share of the costs of highway maintenance, New Jersey also imposes a highway use tax equivalent to the motor fuel tax, called the motor fuels use tax, on commercial vehicles that operate in New Jersey on fuel purchased outside of New Jersey. Correctly proportionalizing a vehicle operator's New Jersey road use with New Jersey fuel purchases requires each operator of large commercial vehicles on New Jersey highways to report its mileage within and outside of New Jersey and its fuel purchases made inside and outside of New Jersey.

    Motor fuels use tax liability is reported quarterly. Road users who have no motor fuels use tax liability (because they purchase all their fuel in New Jersey, and pay for their road usage "at the pump") are still required to make regular quarterly reports. If they make late reports of their zero liability they are subject to a fixed statutory late filing penalty. This bill eliminates that late reporting penalty for taxpayers that have no liability.

 

                            

Eliminates late filing penalty for motor fuel use tax returns showing no liability.