Bill Text: NJ S1129 | 2010-2011 | Regular Session | Introduced
Bill Title: Establishes the Travel and Tourism Supplemental Revenue Fund.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2010-02-04 - Introduced in the Senate, Referred to Senate State Government, Wagering, Tourism & Historic Preservation Committee [S1129 Detail]
Download: New_Jersey-2010-S1129-Introduced.html
Sponsored by:
Senator JEFF VAN DREW
District 1 (Cape May, Atlantic and Cumberland)
SYNOPSIS
Establishes the Travel and Tourism Supplemental Revenue Fund.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning travel and tourism funding and supplementing Title 34 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. This act shall be known and may be cited as the "Travel and Tourism Supplemental Revenue Fund Act."
2. The Legislature finds and declares that:
a. According to the Division of Travel and Tourism, New Jersey's tourism industry is a $31 billion dollar industry, ranking second only to the pharmaceutical industry, and generates some 800,000 jobs and $20 billion dollars in salaries and State and local taxes.
b. The National Conference of State Legislatures (NCSL) has reported that between 1999 and 2000, total state funding for travel and tourism increased over 12 percent to $644 million.
c. The NCSL also reported that the trend in recent years has been for states to adopt "performance-based" tourism funding formulas in order to promote greater service quality, quantity, efficiency and effectiveness of state travel and tourism offices through the establishment of measurable objectives.
d. It is in the public interest to establish a "performance-based" supplemental funding formula for the Division of Travel and Tourism in this State in order to promote more efficient and effective delivery of services in this area.
3. As used in this act:
"Act" means the "Travel and Tourism Supplemental Revenue Fund Act."
"Department" means the New Jersey Department of State established pursuant to P.L.1948, c.445 (C.52:16A-1 et seq.).
"Director" means the Director of the Division of Taxation in the Department of the Treasury.
"Division" means the Division of Travel and Tourism in the department.
"Tourism-related receipts" means:
a. The rent for every occupancy of a room or rooms in a hotel subject to taxation pursuant to subsection (d) of section 3 of the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-3d);
b. Receipts from the sale of food and drink in or by restaurants, taverns, or other establishments, or by caterers, including in the amount of such receipts any cover, minimum, entertainment or other charge made to patrons or customers, subject to taxation pursuant to subsection (c) of section 3 of the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-3c) but excluding receipts from sales of food and beverages sold through coin operated vending machines; and
c. Admissions charges to or the use of any place of amusement or of any roof garden, cabaret or similar place, subject to taxation pursuant to subsection (e) of section 3 of the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-3e).
"Tourism" means activities involved in providing and marketing services and products, including accommodations, for nonresidents and residents who travel to and in New Jersey for recreation and pleasure.
"Tourism fund" means the Supplemental Tourism Revenue Fund created pursuant to section 4 of this act which shall be the repository for sales taxes collected pursuant to the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.) from tourism-related receipts.
"Tourist industry" means the industry consisting of private and public organizations which directly or indirectly provide services and products to nonresidents and residents who travel to and in New Jersey for recreation and pleasure.
"Treasurer" means the Treasurer of the State of New Jersey.
4. a. There is created a dedicated, nonlapsing "Supplemental Tourism Revenue Fund" to be held by the Treasurer. The tourism fund shall be the repository for all sales taxes derived from tourism-related receipts and deposited therein pursuant to this act.
b. The Treasurer shall administer the tourism fund and shall direct all sales taxes collected pursuant to the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.) from tourism-related receipts to be deposited therein. The director shall calculate the appropriate percentage of moneys from the tourism fund which shall be deposited to the credit of the division to provide funding to carry out the duties and functions of the division as prescribed by law.
c. Moneys deposited in the tourism fund and made available to the division pursuant to this act shall be in addition to any other moneys that may otherwise be appropriated or made available to the division.
d. For each fiscal year, the division shall receive, in addition to any appropriations from the State's General Fund, or other moneys that may be made available to the division, the appropriate percentage of moneys from the tourism fund, as determined by the director pursuant to this section.
e. The director shall determine the amount from the tourism fund to be deposited to the credit of the division in each fiscal year by computing the annual average amount of sales taxes derived from tourism-related receipts during the two preceding fiscal years that were deposited to the tourism fund and comparing the annual average amount to the total amount of sales taxes derived from tourism-related receipts in the preceding fiscal year that were deposited to the tourism fund.
f. If the director determines that the amount of sales taxes derived from tourism-related receipts and deposited to the tourism fund in the preceding fiscal year is at least three percent greater than the annual average amount of such sales taxes deposited to the tourism fund in the two preceding fiscal years, an amount equal to one-half of the increase in sales taxes in excess of a three percent increase shall be calculated by the director and the amount so calculated shall be deposited by the Treasurer to the credit of the division, provided that the amount so deposited shall not exceed the amount credited to the division during the preceding fiscal year by more than three million dollars.
5. The director shall, in consultation with the Treasurer, promulgate such rules and regulations pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.) as are necessary to govern the administration of the tourism fund for the purposes of this act. In addition, the director and the Treasurer are authorized to prescribe forms and procedures and to require any person to provide any information necessary to enforce the provisions of this act.
6. This act shall take effect on the 60th day next following enactment.
STATEMENT
This bill establishes a dedicated, non-lapsing tourism fund to be administered by the State Treasurer to provide a source of supplemental funding to the Division of Travel and Tourism (the "division") to carry out the functions and duties of the division.
The amount of supplemental funds to be credited to the division shall be calculated by the State Treasurer based upon the results achieved by the division in increasing sales taxes derived from tourism-related receipts during preceding fiscal years.
If the amount of sales taxes derived from tourism-related receipts during the preceding fiscal year exceeds the annual average amounts collected from such sales taxes during the preceding two fiscal years by more than three percent, the division would be entitled to a credit equal to one-half of the increase above three percent up to a maximum increase of three million dollars.
According to the National
Conference of State Legislatures, most states are either studying or
implementing similar "performance-based" budgeting formulas to
improve the effectiveness and efficiency of state agencies. This bill is
intended to provide supplemental funding to assist the Division of Travel and
Tourism
by applying objective performance measures to determine the level of additional
funding.
