Bill Text: NJ A4413 | 2010-2011 | Regular Session | Introduced
Bill Title: Provides gross income tax credit for payment of certain tolls and fares related to certain transportation projects and improvements maintained and operated by Port Authority of New York and New Jersey.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Introduced - Dead) 2011-12-08 - Introduced, Referred to Assembly Transportation, Public Works and Independent Authorities Committee [A4413 Detail]
Download: New_Jersey-2010-A4413-Introduced.html
Sponsored by:
Assemblywoman VALERIE VAINIERI HUTTLE
District 37 (Bergen)
Assemblyman JASON O'DONNELL
District 31 (Hudson)
Assemblywoman CONNIE WAGNER
District 38 (Bergen)
SYNOPSIS
Provides gross income tax credit for payment of certain tolls and fares related to certain transportation projects and improvements maintained and operated by Port Authority of New York and New Jersey.
CURRENT VERSION OF TEXT
As introduced.
An Act providing a gross income tax credit for the payment of certain tolls and fares related to certain transportation projects and improvements maintained and operated by the Port Authority of New York and New Jersey, supplementing Title 54A of the New Jersey Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. A taxpayer shall be allowed a credit against the tax otherwise due for the taxable year pursuant to the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., in an amount equal to 20 percent of: (1) any tolls paid by the taxpayer during the taxable year for the operation of a motor vehicle across a bridge or through a tunnel project or improvement that is maintained and operated by the Port Authority of New York and New Jersey; and (2) any fares paid by the taxpayer during the taxable year for the carriage of a passenger by passenger rail service over a railroad or through a tube or tunnel project or improvement that is maintained and operated by the Port Authority of New York and New Jersey, or by its subsidiary the Port Authority Trans-Hudson Corporation, if, collectively, such tolls or fares paid by the taxpayer during the taxable year exceed two percent of the taxpayer's gross income for the taxable year in which the credit is claimed.
b. The amount of credit claimed pursuant to subsection a. of this section shall not include any amount equal to such tolls or fares:
(1) paid as a fine, penalty, administrative fee, or other type of payment made for a violation of a toll or fare;
(2) paid as an administrative fee, processing fee, or other payment for the purpose of establishing an electronic tolling account, acquiring electronic tolling equipment, or any other administrative purpose;
(3) reimbursed to the taxpayer by or for the taxpayer's employer;
(4) deductible by the taxpayer from federal adjusted gross income as an unreimbursed employee expense pursuant to section 162 of the federal Internal Revenue Code of 1986 (26 U.S.C. s.162) but without regard to any limits or floor determined pursuant to section 67 of the federal Internal Revenue Code of 1986 (26 U.S.C. s.67), even if not so deducted;
(5) deductible in determining net profits from business pursuant to subsection b. of N.J.S.54A:5-1, even if not so deducted;
(6) deductible in determining distributive share of partnership income pursuant to subsection k. of N.J.S.54A:5-1, even if not so deducted; and
(7) deductible in determining net pro rata share of S corporation income pursuant to subsection p. of N.J.S.54A:5-1, even if not so deducted.
c. If the amount of credit claimed pursuant to subsection a. of this section for a taxable year, together with any other payments or credits against the tax, reduces the tax liability otherwise due for the taxable year to zero, any amount of credit remaining shall be paid to the taxpayer as a refund of an overpayment of tax pursuant to N.J.S.54A:9-7; provided, however, that subsection (f) of that section, concerning the allowance of interest, shall not apply.
2. This act shall take effect immediately and apply to taxable years beginning on or after January 1, 2012.
STATEMENT
This bill provides a credit against the New Jersey gross income tax for certain tolls and fares paid in connection with certain transportation projects and improvements maintained and operated by the Port Authority of New York and New Jersey.
The bill specifies that the amount of the credit is equal to 20 percent of (1) any tolls paid by a taxpayer during the taxable year for the operation of a motor vehicle across a bridge or through a tunnel project or improvement that is maintained and operated by the Port Authority of New York and New Jersey; and (2) any fares paid by a taxpayer during the taxable year for the carriage of a passenger by passenger rail service over a railroad or through a tube or tunnel project or improvement that is maintained and operated by the Port Authority of New York and New Jersey or by its subsidiary, the Port Authority Trans-Hudson Corporation.
The bill specifies that in order to claim the credit a taxpayer must incur toll or fare-related expenses during the taxable year that exceed a fixed percentage of the taxpayer's income. Under the bill, a taxpayer may claim the credit if the sum of all tolls or fares paid by the taxpayer during the taxable year exceeds two percent of the taxpayer's gross income for the taxable year the credit is claimed.
The bill provides that the amount of any credit claimed by a taxpayer may not include the amount of any tolls or fares that are: (1) paid as a fine, penalty, administrative fee, or other type of payment made for a violation of a toll or fare; (2) paid as an administrative fee, processing fee, or other payment for the purpose of establishing an electronic tolling account, acquiring electronic tolling equipment, or any other administrative purpose; (3) reimbursed to the taxpayer by or for the taxpayer's employer; (4) deductible by the taxpayer from federal adjusted gross income as an unreimbursed employee expense pursuant to section 162 of the federal Internal Revenue Code but without regard to any limits or floor determined pursuant to section 67 of the federal Internal Revenue Code, even if not so deducted; (5) deductible in determining net profits from business pursuant to subsection b. of N.J.S.54A:5-1, even if not so deducted; (6) deductible in determining distributive share of partnership income pursuant to subsection k. of N.J.S.54A:5-1, even if not so deducted; and (7) deductible in determining net pro rata share of S corporation income pursuant to subsection p. of N.J.S.54A:5-1, even if not so deducted.
The bill provides that the credit is refundable. Specifically, the bill provides that if the amount of any credit claimed by a taxpayer, together with any other payments or credits against the tax, reduces the tax liability otherwise due for the taxable year to zero, the amount of any remaining credit that cannot be applied to reduce a taxpayer's liability for tax must be refunded to the taxpayer.
The bill provides that its provisions take effect immediately and that the tax credit will apply to taxable years beginning on or after January 1, 2012.
The purpose of this bill is to provide New Jersey gross income taxpayers with a means to defray a portion of the increased travel-related costs resulting from the toll and fare hikes authorized by the Board of Commissioners of the Port Authority of New York and New Jersey on August 19, 2011 and subsequently approved by the governors of New York and New Jersey. The toll and fare hikes have significantly increases the cost to commute at a time when New Jersey taxpayers can least afford the additional expense.
