Bill Text: NJ S966 | 2012-2013 | Regular Session | Introduced
Bill Title: Increases railroad franchise and property taxes to support improvements to railroad capital facilities.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2012-01-17 - Introduced in the Senate, Referred to Senate Transportation Committee [S966 Detail]
Download: New_Jersey-2012-S966-Introduced.html
Sponsored by:
Senator LORETTA WEINBERG
District 37 (Bergen)
SYNOPSIS
Increases railroad franchise and property taxes to support improvements to railroad capital facilities.
CURRENT VERSION OF TEXT
As introduced.
An Act increasing the railroad franchise tax and railroad property tax to fund improvements to railroad capital facilities, amending P.L.1941,c.291 and P.L.1963, c.96.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 7 of P.L.1941, c.291 (C.54:29A-7) is amended to read as follows:
7. There is hereby levied an annual property tax upon all property used for railroad purposes, other than (a) main stem, (b) tangible personal property and (c) facilities used in passenger service, which tax shall be assessed by the commissioner, in the manner hereinafter provided and at the rate of [$4.75] $9.50 for each $100.00 of the true value of such property for the year 1967 and each year thereafter.
(cf: P.L.1966, c.139, s. 2)
2. Section 13 of P.L.1941, c.291 (C.54:29A-13) is amended to read as follows:
13. An annual franchise tax is hereby levied upon all railroads operating within this State, which shall be assessed at the rate of [10%] 20% upon the net railway operating income of the preceding year, computed and allocated in the manner hereinafter provided, of each system and of each railroad not part of a system, provided, however, that the minimum franchise tax payable by any taxpayer shall be $100 as to taxpayers having total railway operating revenues of the preceding year allocated under section 14 not in excess of $1 million and $4,000 as to all other taxpayers.
(cf: P.L.1964, c.251, s.5)
3. Section 1 of P.L.1963, c.96 (C.54:29A-17.1) is amended to read as follows:
1. The value of all property used for railroad purposes of each railroad shall be ascertained without including any part of the value of improvements to capital facilities undertaken pursuant to the provision of a contract with the State Highway Commissioner, the State Treasurer, or pursuant to the provision of an agreement with a municipality, where such improvements were made after January 1, 1963. For the purpose of this section "improvements to capital facilities" shall mean the construction, reconstruction, relocation, establishment, improvement (by way of betterments, additions or otherwise) or rehabilitation in connection with passenger service of passenger stations and terminals, automobile parking facilities for railroad patrons, track connections, signal systems, power systems, roadbeds, equipment storage and service facilities, and shall include the reconstruction or rehabilitation of railroad passenger cars, locomotives, self-propelled passenger carrying rail cars.
(cf: P.L.1964, c.251, s.10)
4. Section 23 of P.L.1941, c.291 (C.54:29A-23) is amended to read as follows:
23. a. [All receipts] Receipts from the first $4.75 collected from the $9.50 per each $100 of the true value from the taxation of Class II railroad property together with the first 10% collected from the 20% of receipts from the franchise tax imposed hereunder shall be applied to the uses of the State according to law.
b. All other receipts collected from the $9.50 per each $100 of true value from the taxation of Class II railroad property together with the 20% of receipts from the franchise tax imposed hereunder shall be deposited into a special purpose non-lapsing fund in the Department of the Treasury for the purpose of making grants annually for improvements to capital facilities as defined pursuant to section 1 of P.L.1963, c. 96 (C.54:29A-17.1).
c. The State Treasurer in consultation with the Commissioner of Transportation shall adopt rules and regulations pursuant to the provisions of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.) in order to effectuate the provisions of this section.
(P.L.1966, c.139, s.9)
5. This act shall take effect immediately upon final adoption of rules and regulations adopted pursuant to section 4 of P.L. , c. (C. ) (pending before the Legislature as this bill).
STATEMENT
This bill amends the "Railroad Tax Law of 1948" by increasing the railroad property tax from $4.75 to $9.50 and by increasing the railroad franchise tax from 10% of net railway operating income to 20% of net railway operating income. The proceeds of the increase in taxes would be deposited into a special purpose non-lapsing fund in the Department of Treasury for the purpose of making grants annually to fund improvements to railroad capital facilities. The State Treasurer in consultation with the Commissioner of the Department of Transportation is authorized under the bill to adopt rules and regulations for the purpose managing the collection of taxes and awarding of grants annually for capital improvements.
