Bill Text: NJ S2554 | 2022-2023 | Regular Session | Introduced
Bill Title: Suspends taxation of highway fuels for one year; makes appropriation.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2022-05-12 - Introduced in the Senate, Referred to Senate Transportation Committee [S2554 Detail]
Download: New_Jersey-2022-S2554-Introduced.html
Sponsored by:
Senator NIA H. GILL
District 34 (Essex and Passaic)
SYNOPSIS
Suspends taxation of highway fuels for one year; makes appropriation.
CURRENT VERSION OF TEXT
As introduced.
An Act suspending the taxation of highway fuels for one year and making an appropriation.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. As used in this act:
"Blended fuel" means a mixture composed of gasoline, diesel fuel, kerosene or blended fuel and another liquid, including blend stock other than a de minimis amount of a product such as carburetor detergent or oxidation inhibitor, that can be used as a fuel in a highway vehicle. The term includes but is not limited to gasohol, biobased liquid fuel, biodiesel fuel, ethanol, methanol, fuel grade alcohol, diesel fuel enhancers and resulting blends.
"Diesel fuel" means a liquid that is commonly or commercially known or sold as a fuel that is suitable for use in a diesel-powered highway vehicle. A liquid meets this requirement if, without further processing or blending, the liquid has practical and commercial fitness for use in the propulsion engine of a diesel-powered highway vehicle. The term includes biobased liquid fuel, biodiesel fuel, and number 1 and number 2 diesel fuel.
"Director" means the Director of the Division of Taxation in the Department of the Treasury.
"Gasoline" means all products commonly or commercially known or sold as gasoline that are suitable for use as a motor fuel. The term does not include products that have an ASTM octane number of less than 75 as determined by the "motor method," ASTM D2700-92. The term does not include racing gasoline or aviation gasoline, but for administrative purposes does include fuel grade alcohol.
"Highway fuel" means gasoline, blended fuel that contains gasoline or is intended for use as gasoline, liquefied petroleum gas, diesel fuel, blended fuel that contains diesel fuel or is intended for use as diesel fuel, and kerosene, other than aviation grade kerosene.
2. a. (1) Notwithstanding any provision of the "Motor Fuel Tax Act," P.L.2010, c.22 (C.54:39-101 et seq.) to the contrary, beginning on the seventh calendar day following the effective date of this act, no tax shall be imposed under paragraphs (1) or (2) of subsection a. of section 3 of P.L.2010, c.22 (C.54:39-103) during the 12-month period following such date.
(2) Notwithstanding any provision of the "Petroleum Products Gross Receipts Tax Act," P.L.1990, c.42 (C.54:15B-1 et seq.) to the contrary, beginning on the seventh calendar day following the effective date of this act, no tax shall be imposed on highway fuel under paragraphs (1) or (2) of subsection a. of section 3 of P.L.1990, c.42 (C.54:15B-3) during the 12-month period following such date.
b. The benefit of suspending the taxation of highway fuel, as provided in this section, shall be passed onto the consumers of highway fuel, and the retail price of highway fuel sold in this State shall be reduced to reflect the suspension of taxation.
3. On or before the fifth calendar day following the effective date of this act, the director shall provide written notice to each person otherwise liable for the payment of tax on highway fuel under the "Motor Fuel Tax Act," P.L.2010, c.22 (C.54:39-101 et seq.) or the "Petroleum Products Gross Receipts Tax Act," P.L.1990, c.42 (C.54:15B-1 et seq.). In addition to any other information that the director may deem appropriate, the written notice shall inform each person of the provisions of this act.
4. a. For any month in which the tax imposed under paragraphs (1) and (2) of subsection a. of section 3 of P.L.2010, c.22 (C.54:39-103) is suspended pursuant to section 2 of this act, any person otherwise liable for the precollection or payment of that tax shall submit a written report to the director on or before the 22nd day of the following month. In addition to any other information that the director may deem appropriate, the report shall indicate:
(1) the amount of tax paid for the month under paragraphs (1) and (2) of subsection a. of section 3 of P.L.2010, c.22 (C.54:39-103); and
(2) the total amount of tax that would have been owed for the month under paragraphs (1) and (2) of subsection a. of section 3 of P.L.2010, c.22 (C.54:39-103) if the tax was not suspended pursuant to this act.
b. For any month in which the tax imposed on highway fuel under paragraphs (1) and (2) of subsection a. of section 3 of P.L.1990, c.42 (C.54:15B-3) is suspended pursuant to section 2 of this act, any person otherwise liable for the payment of that tax shall submit a written report to the director on or before the 22nd day of the following month. In addition to any other information that the director may deem appropriate, the report shall indicate:
(1) the amount of tax paid for the month on highway fuel under paragraphs (1) and (2) of subsection a. of section 3 of P.L.1990, c.42 (C.54:15B-3); and
(2) the total amount of tax on highway fuel that would have been owed for the month under paragraphs (1) and (2) of subsection a. of section 3 of P.L.1990, c.42 (C.54:15B-3) if the tax was not suspended pursuant to this act.
5. There is appropriated from the General Fund for deposit into the "Transportation Trust Fund Account," established pursuant to section 20 of P.L.1984, c.73 (C.27:1B-20), such amounts as are necessary to offset any reductions in motor fuel tax revenues and petroleum products gross receipts tax revenues that occur as a direct result of the provisions of this act, subject to the approval of the Director of the Division of Budget and Accounting in the Department of the Treasury.
6. Notwithstanding any provision of subsection c. of section 3 of P.L.1990, c.42 (C.54:15B-3) to the contrary, the State Treasurer shall consider all amounts appropriated pursuant to section 5 of this act as though such amounts were petroleum products gross receipts tax revenues for the purposes of all calculations made under subsection c. of section 3 of P.L.1990, c.42 (C.54:15B-3) relating to the determination of the highway fuel cap amount and the rate of tax imposed on highway fuel.
7. Notwithstanding any provision of section 19 of P.L.2016, c.57 (C.52:18A-257) to the contrary, this act shall not be construed by the review council to impede the scheduled implementation of P.L.2016, c.57 (C.54:15B-13 et al.) and, therefore, the review council shall not certify for the purposes of subparagraph (h) of paragraph (1) of subsection a. of section 3 of P.L.1990, c.42 (C.54:15B-3) to the director that the scheduled implementation of P.L.2016, c.57 (C.54:15B-13 et al.) has been impeded.
8. Notwithstanding any provision of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.) to the contrary, the Director of the Division of Taxation in the Department of the Treasury shall adopt, immediately upon filing with the Office of Administrative Law and no later than the 30th day after the date of enactment of this act, such rules and regulations as the director deems necessary to implement the provisions of this act, which regulations may thereafter be amended by the director.
9. This act shall take effect immediately.
STATEMENT
This bill provides for a one-year suspension of the taxation of highway fuel under the "Motor Fuel Tax Act," P.L.2010, c.22 (C.54:39-101 et seq.) and the "Petroleum Products Gross Receipts Tax Act," P.L.1990, c.42 (C.54:15B-1 et seq.). Under the bill, the benefits of the tax holiday are required to be passed onto consumers in the form of reduced retail prices for highway fuels.
Specifically, the one-year tax holiday would begin on the seventh calendar day following the date of enactment. The bill also requires the Director of the Division of Taxation in the Department of the Treasury to provide written notice of the tax holiday to all persons otherwise liable for the payment of highway fuel taxes.
Additionally, the bill appropriates such amounts as are necessary to offset any reductions in revenue that occur as a result of the bill. These monies would be appropriated from the General Fund for deposit into the Transportation Trust Fund. The bill also requires the State Treasurer to consider these appropriations when determining the annual rate of taxation for highway fuel under the petroleum products gross receipts tax.
