New Jersey Senate Bill S1762

New Jersey 2022-2023 Regular Session

• Introduced: 2/28/22
• Refer: 2/28/22

Caption

Requires Petroleum Products Gross Receipts Tax rate reduction if certain Legislative action is taken that includes increases in other State tax rates and revenue; dedicates revenues from certain sales and use tax increases to "Transportation Trust Fund Account."

Impact

The proposed changes in S1762 are expected to have a significant impact on state revenue collection and budgeting. Specifically, it requires that proceeds from any increase in the sales tax be directed towards the Transportation Trust Fund Account. This provision aims to ensure that increases in state revenues from sales taxes directly support transportation funding, aligning state tax policies with infrastructure needs and maintenance. This could potentially stabilize funding sources for transportation projects across New Jersey.

Summary

Senate Bill S1762 introduces a requirement for the reduction of the Petroleum Products Gross Receipts Tax rate if certain legislative actions lead to increases in other state tax rates, specifically the Sales and Use Tax. The bill mandates that if the sales tax rate increases, the Legislative Budget and Finance Officer must provide a fiscal estimate of the revenue expected from this increase to the Director of the Division of Taxation. This estimate must be provided within seven days of the legislative action, ensuring timely fiscal management.

Contention

There are points of contention that may arise from the bill's implementation. Supporters of S1762 argue that it ensures a balanced approach to tax revenue, fostering a fair burden on consumers while also promoting necessary infrastructure development. However, opponents may express concerns about how these adjustments could affect consumer prices at the pump, particularly if the Petroleum Products Gross Receipts Tax is reduced amidst rising sales taxes. The interplay between these tax rates will be critical in managing both public perception and actual economic implications.