Bill Text: NJ ACR130 | 2012-2013 | Regular Session | Introduced

---

Bill Title: Amends State Constitution to provide 10.75% marginal personal income tax rate on annual taxable income exceeding $1,000,000 and dedicates amount equal to the revenue derived from tax rate to direct real property tax relief.

Spectrum: Partisan Bill (Democrat 12-0)

Status: (Introduced - Dead) 2012-03-05 - Introduced, Referred to Assembly Budget Committee [ACR130 Detail]

Download: New_Jersey-2012-ACR130-Introduced.html

---

ASSEMBLY CONCURRENT RESOLUTION No. 130

STATE OF NEW JERSEY

215th LEGISLATURE

 

INTRODUCED MARCH 5, 2012

 

 

Sponsored by:

Assemblyman  REED GUSCIORA

District 15 (Hunterdon and Mercer)

Assemblywoman  BONNIE WATSON COLEMAN

District 15 (Hunterdon and Mercer)

 

 

 

 

SYNOPSIS

     Amends State Constitution to provide 10.75% marginal personal income tax rate on annual taxable income exceeding $1,000,000 and dedicates amount equal to the revenue derived from tax rate to direct real property tax relief.

 

CURRENT VERSION OF TEXT

     As introduced.

  

A Concurrent Resolution proposing to amend Article VIII, Section I, paragraph 7 of the Constitution of the State of New Jersey.

 

     Be It Resolved by the Senate of the State of New Jersey (the General Assembly concurring):

 

     1.    The following proposed amendment to the Constitution of the State of New Jersey is agreed to:

 

PROPOSED AMENDMENT

 

     Amend Article VIII, Section I, paragraph 7 to read as follows:

     7.    a. No tax shall be levied on personal incomes of individuals, estates and trusts of this State unless the entire net receipts therefrom shall be received into the treasury, placed in a perpetual fund designated the Property Tax Relief Fund and be annually appropriated, pursuant to formulas established from time to time by the Legislature, to the several counties, municipalities and school districts of this State exclusively for the purpose of reducing or offsetting property taxes. In no event, however, shall a tax so levied on personal incomes be levied on payments received under the federal Social Security Act, the federal Railroad Retirement Act, or any federal law which substantially reenacts the provisions of either of those laws.

     b.    There shall be annually credited from the General Fund and placed in a special account in the perpetual Property Tax Relief Fund established pursuant to this paragraph, which account shall be designated the Property Tax Reform Account, an amount equal to the annual revenue derived from a tax rate of 0.5% imposed under the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.), as amended and supplemented, or any other subsequent law of similar effect, which amount shall be appropriated annually by the Legislature exclusively for the purpose of property tax reform.

     c.     For taxable years beginning on or after the January 1, next following the date on which this subparagraph c. becomes part of the Constitution, if a tax is levied on personal incomes of individuals, estates and trusts of this State pursuant to subparagraph a. of this paragraph 7. that tax shall include a marginal tax rate of no less than ten and three-fourths percent upon annual taxable income in excess of $1,000,000.  The marginal tax rate requirement of this subparagraph shall not limit the capacity of the State to change other components of a personal income tax imposed pursuant to subparagraph a. of this paragraph 7, as may otherwise be undertaken in accordance with this Constitution.

     There is established in the Property Tax Relief Fund a special account designated the Direct Taxpayer Property Tax Relief Account.  An amount equal to the annual revenue derived from the income taxed at the marginal tax rate imposed pursuant to this subparagraph shall be credited to the Direct Taxpayer Property Tax Relief Account, on at least an annual basis.  Amounts credited to the Direct Taxpayer Property Tax Relief Account pursuant to this subparagraph shall be annually appropriated for real property taxpayer relief allocable directly to real property taxpayers.  Real property taxpayer relief that is allocable directly to real property taxpayers includes but is not limited to homestead rebates and credits pursuant to P.L.1990, c.61 (C.54:4-8.57 et al.), homestead property tax reimbursements pursuant to P.L.1997, c.348 (C.54:4-8.67 et al.), veterans' property tax deductions pursuant to P.L.1963, c.171 (C.54:4-8.10 et seq.), senior citizens' and disabled persons' property tax deductions pursuant to P.L.1963, c.172 (C.54:4-8.40 et seq.), and deductions and credits pursuant to the "Property Tax Deduction Act," P.L.1996, c.60 (C.54A:3A-15 et al.), as those acts may be amended or supplemented or any other subsequent law of similar effect.

(cf: Article VIII, Section I, paragraph 7 effective December 7, 2006)

 

     2.    When this proposed amendment to the Constitution is finally agreed to pursuant to Article IX, paragraph 1 of the Constitution, it shall be submitted to the people at the next general election occurring more than three months after the final agreement and shall be published at least once in at least one newspaper of each county designated by the President of the Senate, the Speaker of the General Assembly and the Secretary of State, not less than three months prior to the general election.

 

     3.    This proposed amendment to the Constitution shall be submitted to the people at that election in the following manner and form:

     There shall be printed on each official ballot to be used at the general election, the following:

     a.     In every municipality in which voting machines are not used, a legend which shall immediately precede the question as follows:

     If you favor the proposition printed below make a cross (X), plus (+), or check (a) in the square opposite the word "Yes." If you are opposed thereto make a cross (X), plus (+) or check (a) in the square opposite the word "No."

     b.    In every municipality the following question:

 

		STATE CONSTITUTIONAL AMENDMENT REQUIRING PERSONAL INCOME TAX TO INCLUDE A 10.75% RATE ON INCOME OVER $1,000,000 AND MAKING A DEDICATION FOR DIRECT PROPERTY TAX RELIEF
	YES	Do you approve of the proposed amendment to Article VIII, Section I, paragraph 7 of the State Constitution, agreed to by the Legislature, which requires a 10.75% personal income tax rate on annual taxable income over $1,000,000 and also requires an amount equal to the revenue derived from the tax rate to be spent annually on direct property tax relief?  The amendment requires any State personal income tax levied to include a marginal tax rate of at least 10.75% on annual taxable income over $1,000,000 for taxable years beginning on or after the January 1 following voter approval.  The amendment provides that the marginal tax rate requirement does not limit the State from changing other components of a personal income tax.  The amendment requires that an amount equal to the revenue derived from a marginal tax rate of 10.75% on taxable income over $1,000,000 be annually appropriated for real property taxpayer relief and be given directly to taxpayers.  Programs through which the revenue can be given directly to taxpayers include but are not limited to homestead rebates and credits, homestead property tax reimbursements, veterans' property tax deductions, senior and disabled citizens' property tax deductions and property tax deductions and credits.

 

		INTERPRETIVE STATEMENT
	NO	This proposed constitutional amendment requires that the personal income tax rate on any part of annual income over $1,000,000 be at least 10.75%.  Currently, that rate is 8.97%.  The amendment requires that the amount of money collected from the tax rate on income over $1,000,000 be spent annually on direct property tax relief to individual taxpayers, and ensures that it cannot be spent for any other purpose.  Direct property tax relief includes but is not limited to homestead rebates, homestead property tax reimbursements, veterans' property tax deductions, senior and disabled citizens' property tax deductions, and property tax deductions and credits.

 

 

STATEMENT

 

     This proposed constitutional amendment requires that the personal income tax rate on annual income over $1,000,000 be at least 10.75%.  The constitutional amendment provides that the tax rate on income over $1,000,000 can be no less than the rate that was temporarily imposed during taxable year 2009.  The amendment requires that the amount of money collected from the tax rate on income over $1,000,000 be spent annually on direct property tax relief.  Direct property tax relief includes but is not limited to homestead rebates, homestead property tax reimbursements, veterans' property tax deductions, senior and disabled citizens' property tax deductions, and property tax deductions and credits.