Bill > S1674

Introduced Session

This bill requires a reduction in the Petroleum Products Gross Receipts Tax rate upon certain legislative action and is intended to keep the Legislature's promise of lower taxes. Specifically, following any Legislative action which repeals, impairs, or amends section 19 of P.L.2016, c.57, concerning a State tax review council, and increases the sales and use tax rate, the Legislative Budget and Finance Officer is required to, not later than seven days following the Legislative action, provide a fiscal estimate to the Director of the Division of Taxation in the Department of the Treasury of the anticipated amount of State revenue to be generated as a result of the Legislative action which increases the sales and use tax rate. The estimate is to be calculated based on the difference in total State revenue collected from the sales and use tax during the preceding State fiscal year and the anticipated total amount of revenue to be collected attributable to the increased tax rate. The bill permits the director to contest the Legislative Budget and Finance Officer's fiscal estimate within seven days of receiving the fiscal estimate. If the director contests the fiscal estimate, the director must forward any necessary information to the Legislative Budget and Finance Officer for the purposes of recalculating the fiscal estimate. The Legislative Budget and Finance Officer is required to consider all information provided by the director for the purposes of potentially recalculating the fiscal estimate and transmitting the certification to the director. If the director does not contest the estimate, the Legislative Budget and Finance Officer's fiscal estimate is to be certified and transmitted to the director. On and after the first day of the second month following the certification by the Legislative Budget and Finance Officer to the director, the Petroleum Products Gross Receipts Tax is required to be reduced on a cents-per-gallon basis so that the total revenues collected from the tax are reduced by the amount of increased sales and use tax revenue as provided in the certified estimate. Further, the bill requires the Legislature to annually appropriate an amount equal to the anticipated amount of State revenue to be generated as a result of any Legislative action which increases sales and use tax rate to the "Transportation Trust Fund Account."

Committee Categories

Declan O'Scanlon (R)*, 

Introduced in the Senate, Referred to Senate Transportation Committee (on 01/09/2024)

Official Document