New Jersey-2020-ACR36-Introduced

A Concurrent Resolution proposing to amend Article VIII of the New Jersey Constitution.

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

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

PROPOSED AMENDMENT

a. 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.

(cf: Art. VIII, Sec. I, par.7; amended effective December 7, 2006)

b. Amend Article VIII, Section IV, paragraph 1, to read as follows:

1. The Legislature shall provide for the maintenance and support of a thorough and efficient system of free public schools for the instruction of all the children in the State between the ages of five and eighteen years through the allocation of the entire net receipts from any tax levied on the personal incomes of individuals, estates, and trusts of this State based on an equal allotment per student. Nothing contained herein shall restrict, limit, or otherwise affect the right of the Legislature to regulate additional funding for

the maintenance and support of a thorough and efficient system of free public schools in the manner and to the extent the Legislature determines to be appropriate.

(cf: Art. VIII, Sec. IV, par.1)

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:

		CONSTITUTIONAL AMENDMENT SPECIFYING METHOD OF FUNDING PUBLIC SCHOOLS
	YES	Do you approve the amendment to Article VIII of the New Jersey Constitution establishing a method for funding public schools? The amendment specifies that the Legislature will provide for the maintenance and support of a thorough and efficient system of free public schools by allocating the net receipts of the gross income tax to school districts on a per pupil basis. The amendment also clarifies that nothing in the constitutional provision would limit, restrict, or otherwise affect the Legislature's right to regulate additional funding for the maintenance and support of a thorough and efficient system of free public schools. The proposed amendment also modifies the constitutional provision that authorizes the gross income tax by specifying that all such receipts will be appropriated to school districts.
		INTERPRETIVE STATEMENT
	NO	This proposed constitutional amendment adds language to the existing constitutional provision requiring the Legislature to maintain and support a thorough and efficient system of free public schools. The new language states that the Legislature will satisfy this obligation by allocating the net receipts from the gross income tax to school districts on a per pupil basis. The proposed amendment also changes the current constitutional provision authorizing the gross income tax to require that all revenue generated by the gross income tax will be appropriated to school districts. The current provision allows the revenue to be appropriated to counties and municipalities, as well as school districts.

STATEMENT

Whereas, paragraph 1 of Article III states, "The powers of the government shall be divided among three distinct branches, the legislative, executive, and judicial. No person or persons belonging to or constituting one branch shall exercise any of the powers properly belonging to either of the others, except as expressly provided in this Constitution."

Whereas, paragraph 1 of Section IV of Article VIII states, "The Legislature shall provide for the maintenance and support of a thorough and efficient system of free public schools for the instruction of all the children in the State between the ages of five and eighteen years."

Whereas, paragraph 2 of Section IV of Article VIII states, "The fund for the support of free public schools...shall be annually appropriated to the support of free public schools, and for the equal benefit of all the people of the State."

Whereas, paragraph 7 of Section I of Article VIII states that the income tax is to be, "...annually appropriated...exclusively for the purpose of reducing or offsetting property taxes."

This proposed constitutional amendment provides that the Legislature will provide for the maintenance and support of a thorough and efficient system of free public schools by appropriating the net receipts from the gross income tax to school districts on a per pupil basis. The amendment also clarifies that nothing in the constitutional provision would restrict, limit, or otherwise affect the right of the Legislature to regulate additional funding to districts. Last, it amends the constitutional provision that authorizes the gross income tax to specify that all of the revenue will be appropriated to school districts, as opposed to school districts, counties and municipalities.