SENATE, No. 1750

STATE OF NEW JERSEY

INTRODUCED DECEMBER 19, 1996

By Senator CASEY

An Act concerning the amount of public utility gross receipts and franchise taxes paid to municipalities annually and amending P.L.1991, c.184.

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

    1. Section 25 of P.L.1991, c.184 (C.54:30A-24.3) is amended to read as follows:

    25. a. There shall be annually appropriated for apportionment and payment to municipalities pursuant to section 9 of P.L.1940, c.4 (C.54:30A-24), section 2 of P.L.1980, c.10 (C.54:30A-24.1), sections 12 and 13 of P.L.1940, c.5 (C.54:30A-60 and C.54:30A-61), section 4 of P.L.1980, c.11 (C.54:30A-61.1) and section 19 of P.L.1991, c.184 (C.54:30A-61.2), an amount not less than $685,000,000, notwithstanding any other provision of law to the contrary and notwithstanding the amount of taxes paid by taxpayers pursuant to P.L.1940, c.4 (C.54:30A-16 et seq.), P.L.1940, c.5 (C.54:30A-49 et seq.) and P.L.1991, c.184 (C.54:30A-18.6 et al.).

    Notwithstanding any other provision of law to the contrary, the amount specified in this section for appropriation shall be annually apportioned for payment in the same amounts to the same municipalities as received such payments in calendar year 1995 pursuant to P.L.1995, c.164, the fiscal year 1996 annual appropriations law.

    b. There shall be annually appropriated as supplementary payments to municipalities in calendar years that begin in State fiscal years during which amounts in excess of $782,000,000 are anticipated to be collected for Public Utility Gross Receipts and Franchise taxes (combined), the sum of $97,000,000 for distribution in the same amounts to the same municipalities as received payments in calendar year 1995 pursuant to P.L.1995, c.148.

(cf: P.L.1991, c.184, s.25)

    2. Section 26 of P.L.1991, c.184 (C.54:30A-61.3) is amended to read as follows:

    26. a. There shall be annually appropriated for apportionment and payment to municipalities pursuant to section 9 of P.L.1940, c.4 (C.54:30A-24), section 2 of P.L.1980, c.10 (C.54:30A-24.1), sections 12 and 13 of P.L.1940, c.5 (C.54:30A-60 and C.54:30A-61), section 4 of P.L.1980, c.11 (C.54:30A-61.1) and section 19 of P.L.1991, c.184 (C.54:30A-61.2), an amount not less than $685,000,000, notwithstanding any other provision of law to the contrary and notwithstanding the amount of taxes paid by taxpayers pursuant to P.L.1940, c.4 (C.54:30A-16 et seq.), P.L.1940, c.5 (C.54:30A-49 et seq.) and P.L.1991, c.184 (C.54:30A-18.6 et al.).

    Notwithstanding any other provision of law to the contrary, the amount specified in this section for appropriation shall be annually apportioned for payment in the same amounts to the same municipalities as received such payments in calendar year 1995 pursuant to P.L.1995, c.164, the fiscal year 1996 annual appropriations law.

    b. There shall be annually appropriated as supplementary payments to municipalities in calendar years that begin in State fiscal years during which amounts in excess of $782,000,000 are anticipated to be collected for Public Utility Gross Receipts and Franchise taxes (combined), the sum of $97,000,000 for distribution in the same amounts to the same municipalities as received payments in calendar year 1995 pursuant to P.L.1995, c.148.

(cf: P.L.1991, c.184, s.26)

    3. This act shall take effect immediately and shall apply to payments to municipalities made on or after January 1, 1996.

STATEMENT

    This bill freezes the apportionment of the statutorily required minimum amount of $685 million in public utility and gross receipts and franchise taxes so that annually, beginning in calendar year 1996 and thereafter, these taxes would be distributed to the same municipalities as received payments in calendar year 1995 and the payments would be in the same amounts as that each municipality received in calendar year 1995.

    The bill also freezes the apportionment of the supplementary distribution of certain excess gross receipts and franchise taxes in the amount of $97,000,000 paid to municipalities during calendar year 1995 pursuant to P.L.1995, c.147. The supplementary distribution of the additional $97,000,000 would be required during calendar years that begin in State fiscal years during which at least the additional $97,000,000 in revenue is anticipated to be collected from all public utilities. The distribution would be distributed in proportion to the amount each municipality received from the supplementary distribution made in calendar year 1995.

Freezes payments of public utility gross receipts and franchise taxes to municipalities at 1995 levels.