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  • NJ A3988
  • Allows certain fuel dealers and distributors refunds of petroleum products gross receipts tax and credits against motor fuel tax for certain bad debts from sale of fuel.
Introduced
(6/23/2016)
In Committee
(6/23/2016)
Crossed Over
(6/27/2016)
Passed
(10/7/2016)
Signed
(11/21/2016)
Dead/Failed/Vetoed
2016-2017 Regular Session
This bill allows motor fuel distributors and heating oil dealers a refund of their petroleum products gross receipts tax for certain "bad debts" on their sales of fuel. This bill also allows motor fuel distributors a credit against their motor fuel tax due for certain bad debts on their sales of motor fuel. Motor fuel distributors sell motor fuel to other distributors and to retail dealers for that price they must charge for the fuel plus the State petroleum products gross receipts tax ($0.04 per gallon for gasoline and diesel) and motor fuel tax ($0.105 per gallon for gasoline and $0.135 for diesel fuel). In general, motor fuel distributors purchase motor fuel "tax included" and pass the tax on to their customer. Heating oil dealers generally purchase their fuel "tax free," and must charge their non-exempt customers for the petroleum products gross receipts tax on their sales of heating oil. The distributors and dealers must pay these taxes when they purchase motor fuel and then pass them on to their customers. If a distributor's or dealer's customer goes out of business or fails to pay for some other reason, the distributor of motor fuel is at risk not only on the loss for the cost of the fuel but also on the loss for the taxes. The petroleum products gross receipts tax and the motor fuels tax are frequently co-collected but are independently administered. This bill allows a distributor or dealer who has an account that becomes an uncollectible bad debt to claim a refund of petroleum products gross receipts tax for the petroleum products gross receipts tax portion of the bad debt. To make the process as simple as possible, the sellers that are recognized as licensed companies allowed to directly pay petroleum products gross receipts tax on their sales are allowed, in the alternative, to take the refund in the form of a deduction on their tax returns. This bill allows a motor fuel distributor who has an account that becomes an uncollectible bad debt to claim a credit against motor fuel tax liability for the motor fuel tax portion of the bad debt. The bill defines that a "bad debt" becomes uncollectible when it becomes a bad debt deduction for federal income tax purposes. In the case of each tax, if a portion of the bed debt that was previously written off as uncollectible is ultimately collected, a dealer or distributor who was allowed a refund or credit must pay the portion of the amount collected that represents the tax liability.
2nd Reading in the Assembly, 2nd Reading in the Senate, Bills and Joint Resolutions Signed by the Governor, Passed Assembly, Passed both Houses
Approved P.L.2016, c.66.  (on 11/21/2016)
 
 

Date Chamber Action Description
11/21/2016 S Approved P.L.2016, c.66.
10/7/2016 S Passed Senate (Passed Both Houses) (32-0)
10/7/2016 S Substituted for S1091
6/30/2016 S Received in the Senate without Reference, 2nd Reading
6/27/2016 A Passed by the Assembly (78-0-1)
6/23/2016 A Reported out of Assembly Committee, 2nd Reading
6/23/2016 Assembly Budget Hearing (10:00 6/23/2016 Committee Room 11, 4th Floor)
6/23/2016 A Introduced, Referred to Assembly Budget Committee
Date Motion Yea Nay Other
Detail 10/7/2016 Senate Floor: Third Reading - Final Passage 32 0 8
Detail 10/7/2016 Senate Floor: Substitute For S1091 (Voice Vote) 0 0 0
Detail 6/27/2016 Assembly Floor: Third Reading - Final Passage 78 0 2
Detail 6/23/2016 Assembly Budget Committee: Reported Favorably 12 0 1