Bill Text: NJ A3637 | 2010-2011 | Regular Session | Introduced
Bill Title: Establishes temporary dedication of funds from the New Jersey Turnpike authority general reserve account to the Property Tax Relief Fund to fund a temporary gross income tax credit for certain tolls paid.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2011-01-06 - Introduced, Referred to Assembly Appropriations Committee [A3637 Detail]
Download: New_Jersey-2010-A3637-Introduced.html
Sponsored by:
Assemblyman CRAIG J. COUGHLIN
District 19 (Middlesex)
SYNOPSIS
Establishes temporary dedication of funds from the New Jersey Turnpike Authority general reserve account to the Property Tax Relief Fund to fund a temporary gross income tax credit for certain tolls paid.
CURRENT VERSION OF TEXT
As introduced.
An Act establishing temporary dedication of funds from the New Jersey Turnpike Authority general reserve account to the Property Tax Relief Fund and a related gross income tax credit for certain tolls paid, supplementing P.L.2000, c.73 (C.27:1B-21.14) and Title 54A of the New Jersey Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Not later than December 31, 2012 and annually thereafter, the New Jersey Turnpike Authority shall pay from its general reserve account to the State Treasurer for deposit in the Property Tax Relief Fund a sum as shall be determined by the State Treasurer as follows: not less than $195,000,000 each year, except in the final year, provided that the sum of the amounts so paid shall not exceed $1,250,000,000 and that the annual payments shall not be made in any subsequent year after the $1,250,000,000 limit is met.
2. a. For taxable years beginning on or after January 1, 2012, but before January 1, 2017, a taxpayer with gross income for the taxable year of $250,000 or less shall be allowed a credit against the tax otherwise due pursuant to the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq. for the taxable year, in an amount equal to the tolls paid by the taxpayer during the taxable year for the transit of a motor vehicle over the projects of the New Jersey Turnpike Authority and the South Jersey Transportation Authority, or $200 of that amount of tolls paid for the taxable year, whichever is less. This credit shall be applied before any other credit.
b. For taxable years beginning on or after January 1, 2013, but before January 1, 2017, the Director of the Division of Taxation may annually adjust the $200 credit limitation of subsection b. of this section to ensure that the State revenue loss attributable to this section shall be equal to approximately one-fifth of the $1,250,000,000 dedication limitation provided pursuant to section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill). The director's determination pursuant to this subsection shall be based on the State revenue losses attributable to this section in prior taxable years and the requirements imposed pursuant to section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill).
c. The credit provided by subsection a. of this section shall not include any amount equal to such tolls for which the taxpayer (1) receives reimbursement from an employer or any other entity or (2) takes as a deductible expenditure under the "New Jersey Gross Income Tax Act."
3. This act shall take effect immediately.
STATEMENT
This bill establishes a temporary dedication of funds from the New Jersey Turnpike Authority general reserve account to the Property Tax Relief Fund to fund a temporary gross income tax credit for tolls paid by taxpayers earning $250,000 or less annually. The purpose of this bill is to ensure that any savings captured from the cancellation of the Trans-Hudson Express Access to the Region's Core (ARC) Tunnel be returned to the taxpaying public.
The first component of the bill is a dedication of funds from the New Jersey Turnpike Authority's general reserve account to the Property Tax Relief Fund beginning with calendar year 2012. At least $195 million dollars must be deposited in the Property Tax Relief Fund each year, until the final year of the dedication when the $1.25 billion cap on the dedication is met. Within these parameters, the State Treasurer has the discretion to determine the amount of each annual deposit tied to the dedication.
The second component of the bill is a gross income tax credit for tolls paid during taxable years 2012 through 2016 by a taxpayer with $250,000 or less of annual gross income. For taxable year 2012 the credit may not exceed $200. For taxable years 2013 through 2016, the Director of the Division of Taxation may adjust the $200 credit limitation so that the resulting revenue loss will be approximately one-fifth of the $1.25 billion dedication from the New Jersey Turnpike Authority's general reserve account. The credit is applied against liability before the application all other credits.
