New Jersey Senate Bill S4549

New Jersey 2024-2025 Regular Session

• Introduced: 6/2/25
• Refer: 6/2/25

Caption

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

Impact

The implementation of S4549 could significantly enhance utility assistance programs for residents, particularly those facing economic hardships. As electricity rates are projected to increase for residential ratepayers, the bill's provision for excess revenue allocation will ensure that additional funds are available to support vulnerable populations. The expected increase in sales tax revenues from energy and utility services in the coming fiscal years could further stabilize and expand the funding available for these crucial assistance programs.

Summary

Senate Bill S4549 aims to dedicate a portion of the revenues generated from the taxation of energy and utility services under the sales and use tax to the Universal Service Fund, which supports utility assistance programs. The bill stipulates that if the total revenues collected in a fiscal year exceed the amounts collected in the base fiscal year 2025, a portion of the excess revenue must be appropriated to the Board of Public Utilities (BPU) for deposit into the Universal Service Fund. This fund is essential for financing various energy and utility assistance programs, including the Payment Assistance for Gas and Electric Program.

Contention

One notable point of contention regarding S4549 may arise from the potential use of tax revenues previously allocated to the Energy Tax Receipts Property Tax Relief Fund and the General Fund. Stakeholders may debate the prioritization of funds for utility assistance versus other essential state functions. Additionally, there may be concerns regarding the long-term sustainability of such allocations and the bill's broader impact on the state's financial landscape, particularly in light of rising energy rates and economic pressures.