Sponsored by:
Senator SHIRLEY K. TURNER
District 15 (Mercer)
SYNOPSIS
Establishes direct taxpayer property tax relief subaccount to ensure that revenue from "millionaire's" tax increase is dedicated for real property tax relief directly for taxpayers.
CURRENT VERSION OF TEXT
As introduced.
An Act establishing the Direct Taxpayer Property Tax Relief subaccount within the Property Tax Relief Fund to ensure that certain tax revenue is distributed as direct taxpayer property tax relief, amending N.J.S.54A:9-25.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. N.J.S.54A:9-25 is amended to read as follows:
54A:9-25. Taxes collected under the provisions of this act shall be deposited by the State Treasurer in a special account to be known as the Property Tax Relief Fund. There is established within the special fund a subaccount to be known as the Direct Taxpayer Property Tax Relief Fund into which shall be deposited by the State Treasurer the amount of tax revenue anticipated by the Governor to be derived from the tax rate change effectuated in the amendment made to N.J.S.54A:2-1 pursuant to section 17 of P.L.2004, c.40. Moneys in the Property Tax Relief Fund shall 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 providing property tax relief and for the purpose of reducing or offsetting property taxes, including the funding of the requirements of [P.L.1975, c. 212, and] the "School Funding Reform Act of 2008," P.L.2007, c.260 (C.18A:7F-43 et seq.). Moneys in the Direct Taxpayer Property Tax Relief subaccount shall be annually appropriated for real property taxpayer relief allocable directly to taxpayers, including but not limited to homestead [exemptions] rebates and credits under [1976 Assembly Bill No. 1330] P.L.1990, c.61 (C.54:4-8.57 et seq.), homestead property tax reimbursements under P.L.1997, c.348 (C.54:4-8.67 et seq.), veterans' property tax deductions under P.L.1963, c.171 (C.54:4-8.10 et seq.), and senior and disabled citizens' property tax deductions under P.L.1963, c.172 (C.54:4-8.40 et seq.) as said acts may hereafter be amended or supplemented [and provided there]. Moneys remaining in the Direct Taxpayer Property Tax Relief subaccount after annual appropriations for these direct taxpayer relief programs shall be applied to offset the claims allowed during that fiscal year for property tax deductions and credits under the "Property Tax Deduction Act," P.L.1996, c.60 (C.54A:3A-15 et seq.). There may be deducted from the Property Tax Relief Fund the administrative costs of the collection hereof and in replacement of revenues resulting from the repeal of certain laws under this and companion legislation.
(cf: N.J.S.54A:9-25)
2. This act shall take effect immediately and apply to State fiscal years beginning on or after July 1 next following the date of enactment.
STATEMENT
This bill dedicates the gross income tax revenue collected from the "millionaire's" tax increase for annual real property tax relief to be provided directly to real property taxpayers. All income tax revenue collected from the 8.97% gross income tax rate imposed on taxable income in excess of $500,000, which became effective beginning in taxable year 2004, will be deposited in a subaccount in the constitutionally established Property Tax Relief Fund. All revenue derived annually from the 8.97% tax rate is pledged to be used annually for direct real property taxpayer relief. This subaccount, to be known as the Direct Taxpayer Property Tax Relief Fund, is the revenue and budget account that will ensure this direct tax relief continues to be funded from this source as was pledged in the "millionaire's" tax act.