New Jersey-2014-A4217-Introduced

An Act concerning driver's licenses and supplementing Title 39 of the Revised Statutes.

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

1. a. The Chief Administrator of the New Jersey Motor Vehicle Commission, in conjunction with the Director of the Division of Taxation in the Department of the Treasury, shall implement a program to improve the collection of gross income tax deficiencies pursuant to the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq. through the suspension of driver's licenses issued pursuant to R.S.39:3-10. The provisions of this act shall not apply to a commercial driver's license.

b. Under the program, a taxpayer's driver's license shall be suspended if the taxpayer has $5,000 or more in gross income tax deficiency pursuant to the provisions of the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., except that the taxpayer's driver's license shall not be suspended if there is an equitable reason for the taxpayer's failure to pay or the license suspension would result in significant hardship, as determined by the director pursuant to the provisions of paragraphs (6) or (7) of subsection c. of section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill). If a taxpayer fails to comply with the terms of an installment payment plan, as approved by the director, more than once in a 12 month period, the taxpayer's driver's license shall be suspended.

If a taxpayer does not have a driver's license, the taxpayer shall be prohibited from obtaining a driver's license.

2. a. The Director of the Division of Taxation shall send a written notice to the taxpayer by regular and certified mail, at the taxpayer's last known address, advising the taxpayer that the taxpayer's driver's license may be suspended unless, within 60 days of the postmark date of the notice, the taxpayer pays the full amount of the gross income tax deficiency or enters into an installment payment plan, as approved by the director. A notice shall not be sent to a taxpayer whose wages are being garnished by the division for the payment of a gross income tax deficiency or garnished for child support arrears or child support and spousal support arrears.

b. If the taxpayer fails, within 60 days, to pay the full amount of the deficiency or enter into an installment payment plan pursuant to the provisions of subsection a. of this section or to challenge the driver's license suspension pursuant to the provisions of subsection c. of this section, the division shall notify the New Jersey Motor Vehicle Commission that the taxpayer's driver's license shall be suspended.

The taxpayer's driver's license shall continue to be suspended until the gross income tax deficiency is paid in full or the taxpayer enters into an installment payment plan, as approved by the director.

c. Notwithstanding any provision of law to the contrary and except as provided in this section, a taxpayer shall have no right to commence any legal action or proceeding or to any other legal recourse against the division or the commission regarding the issuance of a notice or the suspension of a driver's license under this act. In addition, a taxpayer shall not have a right to a hearing or an appeal with the New Jersey Motor Vehicle Commission regarding the suspension of the taxpayer's driver's license pursuant to this act.

A taxpayer may only challenge a driver's license suspension imposed under this act on the grounds that:

(1) the individual to whom the notice was provided is not the taxpayer at issue;

(2) the gross income tax deficiency was satisfied;

(3) the taxpayer's wages are being garnished by the division for the payment of the gross income tax deficiency at issue or garnished for child support arrears or child support and spousal support arrears;

(4) the taxpayer's driver's license is a commercial driver's license;

(5) the division incorrectly found that the taxpayer failed to comply with the terms of an installment payment plan for the gross income tax deficiency more than once in a 12 month period;

(6) there is an equitable reason, such as involuntary unemployment or disability for the taxpayer's failure to pay, as determined by the director; or

(7) the license suspension would result in a significant hardship to the taxpayer, as determined by the director.

d. Nothing in this act shall limit a taxpayer from establishing that the enforcement of the underlying gross income tax deficiency has been stayed by the filing of a petition under the Bankruptcy Code pursuant to Title 11 of the United States Code.

3. The New Jersey Motor Vehicle Commission and the Division of Taxation shall be permitted to share necessary information for the proper identification of a taxpayer for the purpose of suspending the taxpayer's driver's license.

4. The provisions of this act shall not limit, restrict, or impair the Division of Taxation from exercising any other authority to collect or enforce gross income tax deficiencies.

5. The Chief Administrator of the New Jersey Motor Vehicle Commission in conjunction with the Director of the Division of Taxation, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), shall adopt rules and regulations necessary to effectuate the provisions of this act.

6. This act shall take effect on the first day of the seventh month following enactment, but the Chief Administrator of the New Jersey Motor Vehicle Commission and the Director of the Division of Taxation may take such administrative action in advance of the effective date as may be necessary.

STATEMENT

This bill requires the suspension of a driver's license for a gross income tax deficiency under certain circumstances. Specifically, under the provisions of this bill the Chief Administrator of the New Jersey Motor Vehicle Commission (MVC), in conjunction with the Director of the Division of Taxation, is required to implement a program to improve the collection of gross income tax deficiencies. The provisions of the program would not apply to commercial driver's licenses.

Under the program, a taxpayer's driver's license is required to be suspended if the taxpayer has $5,000 or more in gross income tax deficiency, except that the taxpayer's driver's license is not to be suspended if there is an equitable reason, such as involuntary unemployment or disability for the taxpayer's failure to pay, or the license suspension would result in significant hardship to the taxpayer, as determined by the director. In addition, if a taxpayer fails to comply with the terms of an installment payment plan that has been approved by the division more than once in a 12 month period, the taxpayer's driver's license is to be suspended. The bill provides that if the taxpayer does not have a driver's license, the taxpayer is prohibited from obtaining one.

In addition, under the bill, the director is required to send a written notice to the taxpayer advising the taxpayer that his or her driver's license may be suspended unless, within 60 days of the date of the notice, the taxpayer pays the full amount of the gross income tax deficiency or enters into an installment payment plan. However, a notice is not to be sent to a taxpayer whose wages are being garnished by the division for the payment of a gross income tax deficiency or being garnished for child support arrears or child support and spousal support arrears.

If the taxpayer fails to pay the full amount, enter into an installment payment plan, or challenge the suspension, as provided for in the bill, within 60 days, the division is required to provide notification to the MVC that the taxpayer's license is to be suspended. Under the bill, the suspension will continue until the taxpayer pays the full amount of the deficiency or enters into an installment payment plan.

The bill further provides that a taxpayer does not have a right to commence any legal action against the division or the commission regarding the issuance of a notice or suspension of a driver's license under the bill. In addition, under the bill, a taxpayer does not have a right to a hearing or an appeal with the MVC regarding the license suspension.

The bill further provides that a taxpayer may only challenge a driver's license suspension imposed under the bill on certain grounds, including that the individual to whom the notice was provided is not the taxpayer or that the gross income tax deficiency was already satisfied. However, a person is not prohibited from establishing that the enforcement of the underlying gross income tax deficiency has been stayed by the filing of a bankruptcy petition.

Finally, the MVC and the division are permitted to share necessary information for the proper identification of a taxpayer for the purpose of suspending the taxpayer's driver's license.