Sponsored by:
Assemblyman TROY SINGLETON
District 7 (Burlington)
Assemblyman JOHN J. BURZICHELLI
District 3 (Cumberland, Gloucester and Salem)
Assemblyman DECLAN J. O'SCANLON, JR.
District 13 (Monmouth)
Assemblyman ERIC HOUGHTALING
District 11 (Monmouth)
Assemblywoman JOANN DOWNEY
District 11 (Monmouth)
SYNOPSIS
Provides gross income tax deduction for State fuel taxes paid on purchases of motor fuel for personal use of motor vehicles.
CURRENT VERSION OF TEXT
As introduced.
An Act providing a deduction under the New Jersey gross income tax for State taxes paid on purchases of motor fuel for the personal use of taxpayers’ motor vehicles, supplementing Title 54A of the New Jersey Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. (New section) a. A taxpayer who has gross income for the taxable year of not more than $100,000, including a married couple filing jointly, a married person filing separately, or an individual filing as a single taxpayer or an individual determining tax pursuant to subsection a. of N.J.S.54A:2-1, may deduct from the taxpayer’s gross income reported pursuant to the “New Jersey Gross Income Tax Act,” N.J.S.54A:1-1 et seq., an amount equal to the State taxes paid on purchases of motor fuel for the operation for personal use of the taxpayer’s motor vehicles during the taxable year.
b. An amount shall not be deductible under subsection a. of this section if the amount is:
(1) reimbursed to the taxpayer by or for the taxpayer’s employer;
(2) deductible in determining net profits from business pursuant to subsection b. of N.J.S.54A:5-1, even if not so deducted;
(3) deductible in determining net gains or net income derived from or in the form of rents, royalties, patents, and copyrights pursuant to subsection d. of N.J.S.A.54A:5-1, even if not so deducted;
(4) deductible in determining distributive share of partnership income pursuant to subsection k. of N.J.S.54A:5-1, even if not so deducted;
(5) deductible in determining net pro rata share of S corporation income pursuant to subsection p. of N.J.S.54A:5-1, even if not so deducted; or
(6) deductible as a medical expense pursuant to N.J.S.54A:3-3, even if not so deducted, or paid or distributed out of a medical savings account excluded from gross income pursuant to section 5 of P.L.1997, c.414 (C.54A:6-27).
c. The deduction allowed under this section shall not exceed the amount of $500 for the taxpayer’s taxable year beginning on or after January 1, 2016 but before January 1, 2017, and shall not exceed the amount of $1,000 for the taxpayer’s taxable years beginning on or after January 1, 2017. The deduction allowed for the taxpayer’s taxable year beginning on or after January 1, 2016 but before January 1, 2017 shall only apply to purchases made on and after the 2016 implementation date as defined in section 2 of P.L.1990, c. 42 (C.54:15B-2).
d. For the purposes of this section “State taxes paid on purchases of motor fuel” means the taxes imposed by the “Petroleum Products Gross Receipts Tax Act,” P.L.1990, c.42 (C.54:15B-1 et seq.) and the “Motor Fuel Tax Act,” P.L.2010, c.22 (C.54:39-101 et seq.).
2. This act shall take effect immediately.
STATEMENT
This bill provides a gross income tax deduction for State fuel taxes that are paid by taxpayers on purchases of motor fuel for the operation for personal use of the taxpayer’s motor vehicles and not otherwise reimbursed. Under the bill, the gross income tax deduction is allowed for taxpayers in any filing status with annual gross income of not more than $100,000, and is capped at $500 for the 2016 taxable year (but only for purchases made after a 2016 State fuel tax increase goes into effect) and at $1,000 for each taxable year beginning thereafter.