Bill > A4098

Introduced Session

This bill amends the "New Jersey Transportation Trust Fund Authority Act of 1984" to make changes necessary to support the State's Annual Transportation Capital Program (capital program) for Fiscal Years (FY) 2025 through 2032. These changes also (1) extend the process for calculating the rate of tax imposed on highway fuels under the Petroleum Products Gross Receipts Tax (PPGRT) through Fiscal Year 2032; (2) impose an additional registration fee for electric vehicles; (3) appropriate funds to the New Jersey Transit Corporation; (4) appropriate funds from the Debt Defeasance and Prevention Fund to the Transportation Trust Fund (TTF); and (5) repeal the sales and use tax exemption for zero emission vehicles. Transportation Trust Fund Authority Renewal This bill extends the New Jersey Transportation Trust Fund Authority's (authority) existing authorization to issue transportation program bonds and creates the potential to increase the authority's bonding authorization from FY 2029 through FY 2032. Under current law, the authority is authorized to issue such transportation program bonds as are necessary to fund the capital program, in an amount not to exceed $12 billion, through June 30, 2024. The bill extends this authorization through June 30, 2032. The bill requires the authority, on or before June 30, 2028, to assess whether its remaining bonding capacity is sufficient to fund the capital program through FY 2032 and report its findings to the Legislature and Governor. If the authority determines that additional authorization is needed to fund the capital program, the Legislature and Governor may authorize the authority to issue a maximum of $4 billion in transportation program bonds from FY 2029 through FY 2032. This bill authorizes $15.96 billion in capital program expenditures for an eight-year period from FY 2025 through FY 2032. Specifically, this bill allows for an average annual capital program size of $2 billion from FY 2025 through FY 2032. The bill requires $500 million to be annually appropriated to the New Jersey Transit Corporation (NJ Transit) for capital projects during FY 2027 through FY 2032. However, under the bill, no monies are to be appropriated in the capital program to NJ Transit for these purposes in FY 2025 and FY 2026. Extension of PPGRT Rate Adjustment Procedure Until 2032 This bill extends the PPGRT annual rate adjustment procedure through FY 2032. Under current law, the rate of tax imposed under the PPGRT is annually adjusted by the State Treasurer to ensure that the State realizes a statutorily prescribed revenue target, more commonly referred to as the "highway fuel cap," based on 2016 collections of highway fuel taxes. The cap amount is based on the Fiscal Year 2016 sum of: (1) the taxes collected under the Motor Fuel Tax, (2) the amount derived from taxing the gallonage of highway fuel subject to the four cent motor fuel tax, and (3) the amount that would have been derived from taxing the gallonage of highway fuel subject to the motor fuel tax at a rate of 23 cents per gallon. All revenues collected are deposited into the TTF to support transportation infrastructure projects and debt service on transportation bonds. This annual adjustment mechanism is currently set to expire at the conclusion of FY 2026. The bill allows this process to continue through FY 2032. Additional Vehicle Registration Fee for Electric Vehicles The bill imposes an additional registration fee for electric vehicles registered in the State. The fee would be collected by the Chief Administrator of the Motor Vehicle Commission at the same time the vehicle is initially registered or renewed, as the case may be. Beginning on July 1, 2024, the amount of the fee would be $300 for passenger electric vehicles and $450 for commercial electric vehicles. Under the bill, the revenues generated from these fees would be credited to the "Transportation Trust Fund Account - Subaccount for Capital Reserves" to support transportation projects. However, the bill specifies that these collections may not be used to pay debt service on transportation system bonds, transportation program bonds, or any other bonds, notes or other obligations, including subordinated obligations of the authority until such time as these revenues may be constitutionally dedicated to the TTF. Appropriation of Funds to New Jersey Transit The bill makes a supplemental appropriation of $1 billion from the General Fund to NJ Transit. The bill requires $760 million of these funds to be used for the financing of capital projects and $240 million to be used for NJ Transit operating expenses. The bill also requires the State to appropriate an additional $1 billion in FY 2026 for those same purposes. Appropriation of Funds from Debt Defeasance and Prevention Fund to TTF The bill appropriates $1.5 billion from the "New Jersey Debt Defeasance and Prevention Fund" to the "Transportation Trust Fund Account - Subaccount for Capital Reserves" to be used for the funding of transportation capital projects on a pay-as-you-go basis. The bill prohibits the expenditure of these funds for debt service on transportation system bonds, transportation program bonds, or any other bonds, notes, or other obligations, including subordinated obligations of the TTF. Repeal of Sales Tax Exemption for Electric Vehicles The bill repeals the sales and use tax exemption currently provided for the sales of zero emission vehicles and annually dedicates the revenues derived from the sales of these vehicles, up to $100 million, to the TTF. Specifically, these revenues would be credited to the "Transportation Trust Fund Account - Subaccount for Capital Reserves" to be used for transportation projects. The bill also specifies that these collections may not be used to pay debt service on transportation system bonds, transportation program bonds, or any other bonds, notes, or other obligations, including subordinated obligations of the authority, until such time as these revenues may be constitutionally dedicated to the TTF.

AI Summary

Committee Categories

Christian Barranco (R)*,  Mike Torrissi (R)*, 

Introduced, Referred to Assembly Transportation and Independent Authorities Committee (on 03/18/2024)

Official Document