Sponsored by:
Senator RONALD L. RICE
District 28 (Essex)
Senator M. TERESA RUIZ
District 29 (Essex)
Assemblywoman L. GRACE SPENCER
District 29 (Essex)
Assemblywoman ELIANA PINTOR MARIN
District 29 (Essex)
Assemblyman THOMAS P. GIBLIN
District 34 (Essex and Passaic)
Co-Sponsored by:
Assemblywoman Tucker
SYNOPSIS
Permits certain municipalities to impose and collect payroll tax of up to 1% of employer’s payroll.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the payroll tax levied by certain municipalities and amending P.L.1970, c.326.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 15 of P.L.1970, c.326 (C.40:48C-15) is amended to read as follows:
15. Any municipality may by ordinance impose and collect an employer payroll tax for general municipal purposes of the municipality at a rate of up to 1% of the employer's payroll.
(cf: P.L.1970, c.326, s.15)
2. This act shall take effect immediately.
STATEMENT
This bill would amend the “Local Tax Authorization Act,” P.L.1970, c.326 (C.40:48C-1 et seq.), to permit the City of Newark to impose, by ordinance, an employer payroll tax at a rate of up to 1% of an employer’s payroll. Currently, statutory law requires that the rate of the employer payroll tax be 1% of the employer’s payroll.
The “Local Tax Authorization Act” permits the imposition of a parking tax and surcharge and an employer payroll tax by certain of the State’s larger cities. However, section 2 of P.L.2004, c.181, which was retroactive to September 21, 1999, limited the imposition of an employer payroll tax only to municipalities having imposed that tax within the two years prior to July 1, 1995. At that time, Newark was the only municipality imposing an employer payroll tax under the “Local Tax Authorization Act, and is therefore the only municipality currently able to impose an employer payroll tax by law.