Bill Text: NJ A3370 | 2020-2021 | Regular Session | Introduced
Bill Title: Eliminates certain aviation fuel tax exemptions; provides funding for aviation capital projects.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Introduced - Dead) 2020-02-25 - Introduced, Referred to Assembly Transportation and Independent Authorities Committee [A3370 Detail]
Download: New_Jersey-2020-A3370-Introduced.html
Sponsored by:
Assemblyman JOHN J. BURZICHELLI
District 3 (Cumberland, Gloucester and Salem)
SYNOPSIS
Eliminates certain aviation fuel tax exemptions; provides funding for aviation capital projects.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the taxation of aviation fuels, appropriating aviation fuel tax revenues for aviation purposes, and amending P.L.1990, c.42, P.L.1991, c.181, and P.L.1995, c.108.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 7 of P.L.1991, c.181 (C.54:15B-2.1) is amended to read as follows:
7. a. "Gross receipts," as otherwise defined by section 2 of P.L.1990, c.42 (C.54:15B-2), shall not include receipts from sales of petroleum products used by marine vessels engaged in interstate or foreign commerce and receipts from sales of aviation fuels used by common carriers in interstate or foreign commerce at an airport in the State with fewer than 20,000 scheduled commercial passenger flights per year other than which shall be taxable pursuant to rules promulgated by the director,.
b. Highway fuel used for the following purposes is exempt from the tax imposed by section 3 of P.L.1990, c.42 (C.54:15B-3), and a refund of the tax imposed by that section may be claimed by the consumer providing proof the tax has been paid and no refund has been previously issued:
(1) autobuses while being operated over the highways of this State in those municipalities to which the operator has paid a monthly franchise tax for the use of the streets therein under the provisions of R.S.48:16-25 and autobuses while being operated over the highways of this State in a regular route bus operation as defined in R.S.48:4-1 and under operating authority conferred pursuant to R.S.48:4-3, or while providing bus service under a contract with the New Jersey Transit Corporation or under a contract with a county for special or rural transportation bus service subject to the jurisdiction of the New Jersey Transit Corporation pursuant to P.L.1979, c.150 (C.27:25-1 et seq.), and autobuses providing commuter bus service which receive or discharge passengers in New Jersey. For the purpose of this paragraph "commuter bus service" means regularly scheduled passenger service provided by motor vehicles whether within or across the geographical boundaries of New Jersey and utilized by passengers using reduced fare, multiple ride, or commutation tickets and shall not include charter bus operations for the transportation of enrolled children and adults referred to in subsection c. of R.S.48:4-1 and "regular route service" does not mean a regular route in the nature of special bus operation or a casino bus operation;
(2) agricultural tractors not operated on a public highway;
(3) farm machinery;
(4) ambulances;
(5) rural free delivery carriers in the dispatch of their official business;
(6) vehicles that run only on rails or tracks, and such vehicles as run in substitution therefor;
(7) highway motor vehicles that are operated exclusively on private property;
(8) motor boats or motor vessels used exclusively for or in the propagation, planting, preservation and gathering of oysters and clams in the tidal waters of this State;
(9) motor boats or motor vessels used exclusively for commercial fishing;
(10) motor boats or motor vessels, while being used for hire for fishing parties or being used for sightseeing or excursion parties;
(11) fire engines and fire-fighting apparatus;
(12) stationary machinery and vehicles or implements not designed for the use of transporting persons or property on the public highways;
(13) heating and lighting devices;
(14) motor boats or motor vessels used exclusively for Sea Scout training by a duly chartered unit of the Boy Scouts of America; and
(15) emergency vehicles used exclusively by volunteer first-aid or rescue squads.
(cf: P.L.2016, c.57, s.13)
3. Section 15 of P.L.1995, c.108 (C.27:1B-21.8) is amended to read as follows:
15. a. Each year a nonlapsing sum of money shall be appropriated from funds held in the Special Transportation Fund, established pursuant to section 21 of P.L.1984, c.73 (C.27:1B-21), and credited to the Airport Safety Fund, established in the General Fund pursuant to section 4 of P.L.1983, c.264 (C.6:1-92), for use for any purpose pursuant to the "New Jersey Airport Safety, Security and Improvement Act," P.L.1983, c.264 (C.6:1-89 et al.) and that sum shall be included in the annual report of projects prepared pursuant to section 22 of P.L.1984, c.73 (C.27:1B-22). Funds so appropriated shall no longer be subject to the provisions and limitations of chapter 1B of Title 27 of the Revised Statutes, but instead shall be subject to the provisions and limitations of P.L.1983, c.264 (C.6:1-89 et al.).
b. Commencing with the fiscal year beginning July 1, 2019 there shall be annually appropriated from funds held in the Special Transportation Fund, established pursuant to section 21 of P.L.1984, c.73 (C.27:1B-21) an amount equal to the revenues derived from the tax imposed on the receipts from the sale of aviation fuels used by airlines under the "Petroleum Products Gross Receipts Tax Act," P.L.1990, c.42 (C.54:15B-1 et seq.) to the Port Authority of New York and New Jersey in support of the planning, acquisition, engineering, construction, reconstruction, repair, and rehabilitation costs of extending Port Authority Trans-Hudson Corporation rail service to Newark Liberty International Airport, and for the cost of planning, acquisition, engineering, construction, reconstruction, repair, and rehabilitation of capital projects at airports, local airport systems, or other local facilities owned and operated by the airport owner or operator and directly and substantially related to the air transportation of passengers or property in the State, as a federally permitted use of revenue derived from the taxation of aviation fuel used by airlines pursuant to federal statute, including, but not limited to, Title 49 of United States Code.
(cf: P.L.2010, c.38, s.5)
4. This act shall take effect 90 days following enactment.
STATEMENT
This bill eliminates a tax exemption that airlines receive on their use of aviation fuel and provides funding needed to complete the Port Authority Trans-Hudson Corporation (PATH) rail service extension to Newark Liberty International Airport and other airport capital projects that qualify as federally permitted uses of revenue from the taxation of aviation fuel used by airlines.
Currently, common carriers are exempt from taxation on interstate and foreign flights except for that portion of aviation fuel that is used in "burnout," during taxiing and take-off. This bill taxes the entire receipts from the sale of aviation fuels used by all airlines at the rate of four cents per gallon, except for circumstances where the aviation fuels are used at an airport in the State with fewer than 20,000 scheduled commercial passenger flights per year. Aviation fuels consumed at an airport in the State with fewer than 20,000 scheduled commercial flights per year will continue to be taxed only on the "burnout" portion.
