Bill Text: NJ S1126 | 2010-2011 | Regular Session | Introduced
Bill Title: Reduces rate of State hotel and motel occupancy fee after State FY2010 from 5% to 1%; revises dedications of fee revenue.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2010-02-04 - Introduced in the Senate, Referred to Senate Community and Urban Affairs Committee [S1126 Detail]
Download: New_Jersey-2010-S1126-Introduced.html
Sponsored by:
Senator JEFF VAN DREW
District 1 (Cape May, Atlantic and Cumberland)
SYNOPSIS
Reduces rate of State hotel and motel occupancy fee after State FY2010 from 5% to 1%; revises dedications of fee revenue.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the State hotel and motel occupancy fee, amending P.L.2003, c.114 and supplementing P.L.1977, c.225.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 1 of P.L.2003, c.114 (C.54:32D-1) is amended to read as follows:
1. a. In addition to any other tax, assessment or use fee authorized by law, there is imposed and shall be paid a hotel and motel occupancy fee of 7% for occupancies on and after August 1, 2003 but before July 1, 2004, [and] of 5% for occupancies on and after July 1, 2004 but before July 1, 2010, and of 1% for occupancies on and after July 1, 2010, upon the rent for every occupancy of a room or rooms in a hotel subject to taxation pursuant to subsection (d) of section 3 of P.L. 1966, c.30 (C:54:32B-3), which every person required to collect tax shall collect from the customer when collecting the rent to which it applies; provided however, that on and after the tenth day following a certification by the Director of the Division of Budget and Accounting in the Department of the Treasury pursuant to subsection d. of section 2 of P.L.2003, c.114 (C.54:32D-2), no such fee shall be paid or collected; and provided further that:
(1) the combined rates of the fee imposed under this section, plus the tax imposed under the "Sales and Use Tax Act", P.L.1966, c.30 (C.54:32B-1 et seq.), plus any tax imposed under P.L.1947, c.71 (C.40:48-8.15 et seq.), shall not exceed a total rate of 14%, and to the extent that the total combined rate of taxation for the listed fees and taxes would exceed 14%, the fee imposed under this section shall be reduced so that the total combined rate equals 14%;
(2) the combined rates of the fee imposed under this section, plus the tax imposed under the "Sales and Use Tax Act", P.L.1966, c.30 (C.54:32B-1 et seq.), plus any tax and assessment imposed under section 4 of P.L.1992, c.165 (C.40:54D-4), shall not exceed a total rate of 14%, and to the extent that the total combined rate of taxation for the listed fees and taxes would exceed 14%, the fee imposed under this section shall be reduced so that the total combined rate equals 14%; and
(3) the fee imposed under this section shall be at the rate of 1% in a city in which the tax authorized under P.L.1981, c.77 (C.40:48E-1 et seq.) is imposed.
b. The hotel and motel occupancy fee imposed by subsection a. of this section shall not be imposed on the rent for an occupancy if the purchaser, user or consumer is an entity exempt from the tax imposed on an occupancy under the "Sales and Use Tax Act" pursuant to subsection (a) of section 9 of P.L.1966, c.30 (C.54:32B-9).
c. Terms used in this section shall have the meaning given those terms pursuant to section 2 of P.L.1966, c.30 (C.54:32B-2). (cf: P.L.2006, c.44, s.18)
2. Section 2 of P.L.2003, c.114 (C.54:32D-2) is amended to read as follows:
2. a. The Director of the Division of Taxation shall collect and administer the fee imposed pursuant to section 1 of P.L.2003, c.114 (C.54:32D-1). The fees collected shall be deposited to the General Fund, and shall be allocated as follows:
(1) of the fees collected for occupancies during State Fiscal Year 2004: $16,000,000 shall be allocated for appropriation to the New Jersey State Council on the Arts for cultural projects; $2,700,000 shall be allocated for appropriation to the New Jersey Historical Commission for the purposes of subsection a. of section 3 of P.L.1999, c.131 (C.18A:73-22.3); $9,000,000 shall be allocated for appropriation to the New Jersey Commerce and Economic Growth Commission for tourism advertising and promotion; and $500,000 shall be allocated for appropriation to the New Jersey Cultural Trust; [and]
(2) of the fees collected for occupancies during State Fiscal [Year] Years 2005 [and thereafter] through 2010: 22.68 percent shall be annually allocated for appropriation to the New Jersey State Council on the Arts for cultural projects, provided that the amount allocated shall not be less than $22,680,000; 3.84 percent shall be allocated for appropriation to the New Jersey Historical Commission for the purposes of subsection a. of section 3 of P.L.1999, c.131 (C.18A:73-22.3), provided that the amount allocated shall not be less than $3,840,000; 12.76 percent shall be allocated for appropriation to the New Jersey Commerce and Economic Growth Commission for tourism advertising and promotion, provided that the amount allocated shall not be less than $12,760,000; and .72 percent shall be allocated for appropriation to the New Jersey Cultural Trust, provided that the amount allocated shall not be less than $720,000; and
(3) of the fees collected for occupancies during State Fiscal Year 2011 and thereafter: $16,000,000 shall be annually allocated for appropriation to the New Jersey State Council on the Arts for cultural projects, and the remainder shall be allocated for appropriation to the Division of Travel and Tourism in the Department of State for tourism advertising and promotion.
b. (1) In carrying out the provisions of section 1 of P.L.2003, c.114 (C.54:32D-1) and this section, the director shall have all of the powers and authority granted in P.L.1966, c.30 (C.54:32B-1 et seq.). The tax shall be filed and paid in a manner prescribed by the Director of the Division of Taxation. The director shall promulgate such rules and regulations as the director determines are necessary to effectuate the provisions of section 1 of P.L.2003, c.114 (C.54:32D-1) and this section.
(2) Each person required to collect the hotel and motel occupancy fee shall be personally liable for the fee imposed, collected, or required to be paid, collected, or remitted under section 1 of P.L.2003, c.114 (C.54:32D-1). Any such person shall have the same right in respect to collecting the fee from that person's customer or in respect to non-payment of the fee by the customer as if the fee were a part of the purchase price of the occupancy or rent, as the case may be, and payable at the same time; provided however, that the director shall be joined as a party in any action or proceeding brought to collect the fee.
For purposes of this paragraph, "person" includes: an individual, partnership, corporation, or an officer, director, stockholder, or employee of a corporation, or a member or employee of a partnership, who as such officer, director, stockholder, employee, or member is under the duty to perform the act in respect of which the violation occurs.
c. (1) The annual appropriations act for each State Fiscal Year, commencing with fiscal year 2005 and ending with fiscal year 2010, shall appropriate and distribute during that fiscal year amounts not less than the amounts otherwise specified for State Fiscal Year 2004 in paragraph (1) of subsection a. of this section for the purposes specified in paragraph (1) of subsection a. of this section.
(2) The annual appropriations act for each State Fiscal Year, commencing with fiscal year 2011, shall appropriate and distribute during that fiscal year amounts not less than the amounts otherwise specified in paragraph (3) of subsection a. of this section for the purposes specified in paragraph (3) of subsection a. of this section.
d. If the provisions of subsection c. of this section are not met on the effective date of an annual appropriations act for the State fiscal year, or if an amendment or supplement to an annual appropriations act for the State fiscal year should violate the provisions of subsection c. of this section, the Director of the Division of Budget and Accounting in the Department of the Treasury shall, not later than five days after the enactment of the annual appropriations act, or an amendment or supplement thereto, that violates the provisions of subsection c. of this section, certify to the Director of the Division of Taxation that the requirements of subsection c. of this section have not been met.
e. The Director of the Division of Taxation shall, no later than five days after certification by the Director of the Division of Budget and Accounting in the Department of the Treasury pursuant to subsection d. of this section that the provisions of subsection c. of this section have not been met or have been violated by an amendment or supplement to the annual appropriations act, notify each person required to collect tax of the certification and that the fee imposed pursuant to section 1 of P.L.2003, c.114 (C.54:32D-1) shall no longer be paid or collected.
(cf: P.L.2007, c.102, s.4)
3. (New section) In each State fiscal year beginning on or after July 1, 2010, there shall be annually appropriated from the General Fund to the Division of Travel and Tourism in the Department of State an amount that, when added to the amount allocated for appropriation to the division in that fiscal year pursuant to paragraph (3) of subsection a. of section 2 of P.L.2003, c.114 (C.54:23D-2), will provide a total of not less than $11,000,000 in that fiscal year for tourism advertising and promotion.
4. This act shall take effect immediately.
STATEMENT
This bill lowers the rate of the State hotel and motel occupancy fee from five percent to one percent of the room rental charge as of July 1, 2010.
Reflecting the reduction in State revenue that is likely to result from the lower tax rate, the bill provides that after June 30, 2010, (1) existing dedications of revenue from the fee to support the New Jersey Historical Commission and the New Jersey Cultural Trust are eliminated, and (2) the portion of that revenue that is annually dedicated to the New Jersey State Council on the Arts is reduced from the current minimum $22.68 million to a constant $16 million. The bill provides that the balance of the revenue from the fee after this reduced dedication to the Council, together with such additional amounts from the General Fund as necessary to provide a total of $11 million, shall be appropriated to the Division of Travel and Tourism in the Department of State for tourism advertising and promotion.
The bill does not affect municipalities' authority under the new law to impose a local hotel and motel occupancy tax.
