Bill Text: NJ A3723 | 2016-2017 | Regular Session | Introduced

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Bill Title: Permits certain municipalities to impose and collect payroll tax of up to 1 percent of employer's payroll.

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Introduced - Dead) 2016-12-19 - Substituted by S2347 [A3723 Detail]

Download: New_Jersey-2016-A3723-Introduced.html

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ASSEMBLY, No. 3723

STATE OF NEW JERSEY

217th LEGISLATURE

 

INTRODUCED MAY 19, 2016

 

 

Sponsored by:

Assemblywoman  L. GRACE SPENCER

District 29 (Essex)

Assemblywoman  ELIANA PINTOR MARIN

District 29 (Essex)

 

 

 

 

SYNOPSIS

     Permits certain municipalities to impose and collect payroll tax of up to 1% of employer's payroll.

 

CURRENT VERSION OF TEXT

     As introduced.

  

An Act concerning the payroll tax levied by certain municipalities and amending P.L.1970, c.326.

 

     Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

     1.    Section 15 of P.L.1970, c.326 (C.40:48C-15) is amended to read as follows:

     15.  Any municipality may by ordinance impose and collect an employer payroll tax for general municipal purposes of the municipality at a rate of up to 1% of the employer's payroll.

(cf:  P.L.1970, c.326, s.15)

 

     2.    This act shall take effect immediately.

 

 

STATEMENT

 

     This bill would amend the "Local Tax Authorization Act," P.L.1970, c.326 (C.40:48C-1 et seq.), to permit the City of Newark to impose, by ordinance, an employer payroll tax at a rate of up to 1% of an employer's payroll.  Currently, statutory law requires that the rate of the employer payroll tax be 1% of the employer's payroll.

     The "Local Tax Authorization Act" permits the imposition of a parking tax and surcharge and an employer payroll tax by certain of the State's larger cities.  However, section 2 of P.L.2004, c.181, which was retroactive to September 21, 1999, limited the imposition of an employer payroll tax only to municipalities having imposed that tax within the two years prior to July 1, 1995.  At that time, Newark was the only municipality imposing an employer payroll tax under the "Local Tax Authorization Act, and is therefore the only municipality currently able to impose an employer payroll tax by law.