New Jersey Assembly Bill A5839

New Jersey 2024-2025 Regular Session

• Introduced: 6/16/25
• Refer: 6/16/25

Caption

Dedicates certain energy sales and use tax receipts to support utility assistance programs.

Impact

The enactment of A5839 could significantly alter the financial landscape for utility assistance in New Jersey. Currently, revenues from the sales and use tax on energy services are divided between municipal aid and the general fund. The bill calls for a redirection of excess funds specifically to the Universal Service Fund, signaling a shift in how these resources are utilized. With anticipated increases in utility rates for residential users, the bill is positioned to provide necessary relief by ensuring that additional financial resources are available for assistance programs—potentially benefitting a large number of lower-income households who struggle with rising energy costs.

Summary

Assembly Bill A5839 aims to allocate a portion of the revenue generated from the taxation of energy and utility services to support utility assistance programs. Specifically, if revenues in any state fiscal year exceed the amounts collected in fiscal year 2025, the state is required to appropriate those excess revenues to the Board of Public Utilities (BPU) for deposit into the Universal Service Fund. This fund plays a crucial role in financing various assistance programs, such as the Payment Assistance for Gas and Electric Program, helping low-income households manage their utility bills more effectively.

Contention

Some contention may arise regarding the reliability of projected revenue increases from energy taxes, considering the fluctuating nature of utility prices and consumption patterns. Supporters of A5839 argue that with higher electricity rates on the horizon, the likelihood of surpassing the 2025 revenue benchmarks is significant, thus reinforcing the need for this legislative approach. Critics, however, might point out potential over-reliance on excess tax collections and express concerns about ensuring that these funds effectively reach the intended beneficiaries without bureaucratic delays or inefficiencies in program administration.