Bill Text: NJ A2895 | 2012-2013 | Regular Session | Introduced
Bill Title: Establishes grant program to provide rebate of sales and use tax paid for purchase of certain materials and supplies used for construction of certain off-track wagering facilities.*
Spectrum: Moderate Partisan Bill (Democrat 7-2)
Status: (Engrossed - Dead) 2012-06-28 - Substituted by S2078 [A2895 Detail]
Download: New_Jersey-2012-A2895-Introduced.html
Sponsored by:
Assemblyman JOHN J. BURZICHELLI
District 3 (Cumberland, Gloucester and Salem)
SYNOPSIS
Provides sales and use tax rebate for supplies and materials purchased for construction of off-track wagering facilities.
CURRENT VERSION OF TEXT
As introduced.
An Act providing a sales and use tax rebate for supplies and materials purchased for the construction of off-track wagering facilities, supplementing P.L.1966, c.30 (C.54:32B-1 et seq.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. Notwithstanding the provisions of any law, rule or regulation to the contrary, an amount equal to the tax collected pursuant to the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.) from the retail sale or use of construction materials and construction supplies used by a contractor of a lessee of a racetrack owned by the New Jersey Sports and Exposition Authority, or a joint venture between lessees, or their affiliates, of the New Jersey Sports and Exposition Authority, as of January 1, 2012 for the construction of an off-track wagering facility as defined in section 3 of P.L.2001, c.199 (C.5:5-129) shall be credited by the Director of the Division of Taxation in the Department of the Treasury to a special non-lapsing account in the General Fund as shall be established by the State Treasurer for the purpose prescribed in subsection c. of this section.
b. A contractor purchasing construction materials and construction supplies for the purposes set forth in subsection a. of this section shall complete a form or certification prescribed by the director. The contractor shall identify the type and location of the construction or reconstruction work and the construction materials, construction supplies, purchase price and New Jersey sales or use tax paid for the purchase of construction materials and construction supplies, and shall provide such other information and documentation as the director may require to verify that New Jersey sales or use tax was paid. The form or certifications shall be filed with the director on a quarterly basis as documentation for determining the amounts to be credited by the director to the special non-lapsing account and the grant that may be made pursuant to subsection c. of this section.
c. Upon certification by the New Jersey Sports and Exposition Authority of the completion of the construction or reconstruction work set forth in subsection a. of this section, the amounts credited by the director to the special non-lapsing account in the General Fund pursuant to this section shall be paid by the State Treasurer in the form of a one-time grant to the lessee or joint venture to rebate to the lessee or joint venture the amounts credited in the account for each completed construction or reconstruction work set forth in subsection a. of this section. A grant shall not be paid except as shall be appropriated by law. A lessee or joint venture shall not be allowed more than one grant for any construction or reconstruction work set forth in subsection a. of this section. A grant shall not be paid for any construction or reconstruction work set forth in subsection a. of this section that is completed after June 30, 2022.
d. For purposes of this section,
"Construction materials" means items of tangible personal property purchased by a contractor for incorporation into property as a physical component of such property.
"Construction supplies" means items of tangible personal property consumed in the fulfillment of a construction contract, which items do not become a physical component part of the property upon which work is performed.
e. Notwithstanding any provision of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.) to the contrary, the director may adopt immediately upon filing with the Office of Administrative Law such regulations as the director deems necessary to effectuate the purposes of this section, which regulations shall be effective for a period of not more than 180 days following the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill) and may thereafter be amended, adopted, or readopted by the director in accordance with P.L.1968, c.410 (C.52:14B-1 et seq.).
2. This act shall take effect immediately.
STATEMENT
Under current New Jersey law, organizations like the New Jersey Sports and Exposition Authority ("NJSEA") are exempt from the sales and use tax on materials and supplies which are purchased and used for construction on property owned by the organization.
This bill provides a rebate of the sales and use tax paid by a contractor of a lessee of a racetrack owned by the NJSEA, or a joint venture between lessees, or their affiliates, of the New Jersey Sports and Exposition Authority, for construction materials and construction supplies which are used for the construction of an off-track wagering facility.
The sales and use tax paid for the above purpose is credited to a special non-lapsing account in the General Fund. The amounts credited to the special non-lapsing account are paid in the form of a one-time grant to the lessee or joint venture. No grant will be paid for any construction or reconstruction work that is completed after June 30, 2022.
The purpose of this bill is to provide a rebate of the sales and use tax paid by a contractor of a lessee of a racetrack owned by the NJSEA, or a joint venture between lessees, or their affiliates, of the New Jersey Sports and Exposition Authority. It is not the intent of the sponsor for this bill to supersede, change, or otherwise nullify any existing credit or exemption under current New Jersey law.
