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  • NJ A184
  • Clarifies application of business personal property tax on local exchange telephone companies that were subject to tax as of April 1, 1997.
Introduced
(1/27/2016)
In Committee
(1/27/2016)
Crossed OverPassedSignedDead/Failed/Vetoed
2016-2017 Regular Session
This bill clarifies the application of the business personal property tax on local exchange telephone companies that were subject to the tax as of April 1, 1997. This bill clarifies the changes made in 1997 to the business personal property tax that defined local exchange telephone companies that were subject to that tax as of April 1, 1997. The Tax Court in Verizon New Jersey Inc. v. Hopewell Borough, decided June 26, 2012, has incorrectly construed the plain meaning of the language of the statutory change made in 1997. That statutory change was intended to grandfather into the local property tax base the business personal property of all incumbent local exchange companies that were then subject to that tax and were a telecommunications carrier then meeting the one time definition, not an annual redefinition, of providing dial tone and access to 51% of a local telephone exchange. At least one of the local exchange telephone companies has taken advantage of the incorrect interpretation of the statute and has informed 65 municipalities that it will no longer pay tax on its business personal property, such as equipment, utility poles, cables and more in any given municipality where it claims on an annual basis that it does not provide 51% or more of landline service to its residents. This unintended erosion of the local property tax base will impact all other local property taxpayers in these and possibly more municipalities. The business personal property tax base was not intended to be eroded by annual assertions by taxpayers that the majority of municipal residents provided dial tone and local exchange access services in a municipality might be shifting their service among local exchange carrier competitors that had not been subject to that tax at the time of the 1997 change. This bill will restore the intended local property tax status quo intended to be determined in 1997.
Telecommunications and Utilities
Assembly Telecommunications and Utilities Hearing (10:00 2/22/2016 Committee Room 9, 3rd Floor)  (on 2/22/2016)
 
 
Date Chamber Action Description
2/22/2016 Assembly Telecommunications and Utilities Hearing (10:00 2/22/2016 Committee Room 9, 3rd Floor)
1/27/2016 A Introduced, Referred to Assembly Telecommunications and Utilities Committee
Date Motion Yea Nay Other
None specified