Bill Text: NJ S3863 | 2024-2025 | Regular Session | Introduced
Bill Title: Establishes 90-day State tax amnesty period ending no later than January 15, 2026; dedicates revenues collected during tax amnesty period for Stabilization Aid to school districts; appropriates up to $15 million.
Spectrum: Unknown
Status: (Introduced) 2024-11-18 - Introduced in the Senate, Referred to Senate State Government, Wagering, Tourism & Historic Preservation Committee [S3863 Detail]
Download: New_Jersey-2024-S3863-Introduced.html
Sponsored by:
Senator CARMEN F. AMATO, JR.
District 9 (Ocean)
SYNOPSIS
Establishes 90-day State tax amnesty period ending no later than January 15, 2026; dedicates revenues collected during tax amnesty period for Stabilization Aid to school districts; appropriates up to $15 million.
CURRENT VERSION OF TEXT
As introduced.
An Act providing for a State tax amnesty period, supplementing Title 54 of the Revised Statutes, and making an appropriation.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. (1) In addition to the powers of the Director of the Division of Taxation prescribed under the State Uniform Tax Procedure Law, R.S.54:48-1 et seq., and notwithstanding the provision of any other law to the contrary, the director shall establish a period not to exceed 90 days in duration, which period shall end no later than January 15, 2026, during which a taxpayer who has failed to pay any State tax on or before the day on which the tax is required to be paid may pay to the director on or before the last day of the period established by the director the amount of that tax and one-half of the balance of interest that is due as of November 1, 2025, but without the remaining one-half of the balance of interest that is due as of November 1, 2025 and without any late payment penalty, late filing penalty, cost of collection, delinquency penalty, or recovery fee as set forth in section 2 of P.L.1992, c.172 (C.54:49-12.3) that may otherwise be due. The taxpayer shall be required to pay any civil fraud or criminal penalty arising out of an obligation imposed under any State tax law. This section shall apply only to State tax liabilities for tax returns due on or after September 1, 2017 and prior to January 1, 2025 and shall not extend to any taxpayer who at the time of payment is under criminal investigation or charge for any State tax matter, as certified by a county prosecutor or the Attorney General to the director.
(2) Notwithstanding the provisions of any other law to the contrary, no taxpayer shall be entitled to a waiver of one-half of the balance of interest due as of November 1, 2025 or any penalty and recovery fee pursuant to this section unless full payment of the tax and one-half of the balance of interest due as of November 1, 2025 is made in accordance with the rules and procedures established by the director.
b. There shall be imposed a penalty of five percent, which shall not be subject to waiver or abatement, in addition to all other penalties, interest, or costs of collection otherwise authorized by law, upon any State tax liabilities eligible to be satisfied during the period established pursuant to subsection a. of this section that are not satisfied during the amnesty period.
c. Notwithstanding the provision of any other law or regulation to the contrary, if a taxpayer elects to participate in the program established pursuant to this section, as that election shall be evidenced by full payment pursuant to this section of a State tax liability to which this section applies pursuant to subsection a. of this section, then that election shall constitute an express and absolute relinquishment of all administrative and judicial rights of appeal that have not run or otherwise expired as of the date payment is made. The relinquishment of rights of appeal pursuant to this section shall apply with respect to all rights of appeal established pursuant to the State Uniform Tax Procedure Law, R.S.54:48-1 et seq., and the specific statutory provisions of any State tax. No tax payment made pursuant to this section shall be eligible for refund or credit, whether claimed by administrative protest or judicial appeal.
d. Notwithstanding the provisions of any other law to the contrary, no amnesty payment shall be accepted without the express approval of the director with respect to any State tax assessment which is the subject of any administrative or judicial appeal as of the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill)
e. No person shall be eligible for amnesty under this section if the person has been notified by the Office of Criminal Investigation in the Division of Taxation that the person is under criminal investigation for a State tax matter, unless the Office of Criminal Investigation certifies to the director that the State tax matter involving the person was resolved.
f. Notwithstanding any provision of law to the contrary, no taxpayer shall be eligible for amnesty under this section unless that taxpayer pays the full amount of the tax, reduced interest, and applicable penalties, if any, in accordance with rules and procedures established by the director. If the taxpayer has not previously filed a tax return to report the tax due for which the taxpayer is seeking to pay pursuant to this section, the taxpayer shall file the required return or returns on or before the last day of the period established by the director pursuant to subsection a. of this section.
g. Notwithstanding any provision of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.) to the contrary, the director may adopt immediately upon filing with the Office of Administrative Law such regulations as the director deems necessary to implement the provisions of this section, which regulations shall be effective for a period not to exceed 180 days following the date of effective date of P.L. , c. (C. ) (pending before the Legislature as this bill) and may thereafter be amended, adopted, or readopted by the director in accordance with the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.)
2. a. There is established in the Department of Education a nonlapsing, revolving, dedicated special account designated as the Stabilization Aid Account. All monies collected by the Department of the Treasury pursuant to section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill) shall credited to the account, except the amount of revenue otherwise dedicated pursuant to Article VIII, Section II, paragraphs 4, 6, and 7 of the New Jersey Constitution. Except as otherwise appropriated pursuant to section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill) all monies deposited in the Stabilization Aid Account shall be used solely to provide Stabilization Aid to school district pursuant to subsection b. of this section.
b. In addition to any other school aid provided pursuant to the provisions of P.L.2007, c.62 (C.18A:7F-43 et al.), a school district may receive Stabilization Aid if the school district experiences a reduction in State school aid compared to the prior school year. To receive Stabilization Aid a school district shall submit an application to the Commissioner of Education, in a manner and form prescribed by the commissioner, except that the application section shall include, at a minimum, a written plan explaining how the school district intends to fund operations in future years in which the school district does not receive Stabilization Aid or similar supplemental school aid. The commissioner shall determine the amount of to be awarded to each school district that submits an application for Stabilization Aid.
3. There is appropriated to the Division of Taxation in the Department of the Treasury an amount not to exceed $15,000,000 from the amount deposited into the Stabilization Aid Account to carry out and administer the tax amnesty program established pursuant to the provisions of section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill).
4. Notwithstanding the provisions of any other law to the contrary, a contract for advertising services for the State tax amnesty program established pursuant to section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill) shall be procured in an expedited manner. The Division of Taxation may, to the extent necessary, waive or modify any other law or regulation that may interfere with the expeditious procurement of these services.
5. This act shall take effect immediately, provided, however, that section 4 shall expire upon the awarding of the advertising services contract.
STATEMENT
The bill requires the Director of the Division of Taxation in the Department of the Treasury to establish a 90-day State tax amnesty period, to end no later January 15, 2026. The amnesty period would apply only to State tax liabilities for tax returns due on and after September 1, 2017 and before January 1, 2025. During the amnesty period, a taxpayer who has failed to pay a State tax can pay the amount of unpaid tax and one-half of the balance of interest that is due as of November 1, 2024, without the imposition of the remaining one-half of the balance of interest that is due as of November 1, 2024, recovery fees, civil penalties, and criminal penalties arising out of the late payment. The amnesty would not be available to a taxpayer who, at the time of payment, is under criminal investigation or charge for any State tax matter.
If a taxpayer eligible for the amnesty fails during the amnesty period to pay taxes owed, the bill subjects that taxpayer to a five percent penalty, which the director may not waive or abate. The five percent penalty would be in addition to all other penalties, interest, or collection costs otherwise authorized by law. If a person is notified by the Office of Criminal Investigation in the Division of Taxation that the person is under criminal investigation for a State tax matter, they would not be eligible for amnesty under the program unless the Office of Criminal Investigation certifies to the director that the State tax matter involving that person was resolved. Further, a taxpayer would not be eligible for amnesty under the bill unless that taxpayer pays the full amount of the tax, reduced interest, and applicable penalty, if any, in accordance with the rules and procedures established by the director.
The bill establishes a dedicated account in the Department of Education to be known as the Stabilization Aid Account and requires all of the moneys collected by the State through the tax amnesty program, excluding certain revenues dedicated for specific purposes by the State Constitution, to be deposited into the special account for the purpose of providing Stabilization Aid to school districts that experience a reduction in State aid compared to the prior school year. To receive Stabilization Aid, a school district would be required to submit an application to the Commissioner of Education. The bill requires that the application include, at a minimum, a written plan explaining how the school district intends to fund operations in future school years in which the school district does not receive Stabilization Aid or similar supplemental State school aid.
The bill appropriates a sum not to exceed $15 million from the proceeds collected through the amnesty period for the costs incurred to carry out and administer the program. The bill requires a contract for advertising services for the State tax amnesty program to be procured in an expedited manner.
