S2412

An Act imposing and dedicating a fee on certain transportation services, supplementing P.L.2017, c.26 and Title 48 of the Revised Statutes, and amending P.L.2017, c.26..

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. (New section) a. There is imposed a transportation service fee of $0.20 upon every prearranged ride that is provided wholly within the boundaries of this State and that starts or ends in a municipality with a population exceeding 100,000 people and a population density exceeding 10,000 people per square mile, according to the latest federal decennial census. There is imposed a transportation service fee of $0.15 upon all other prearranged rides provided wholly within the boundaries of this State. A transportation service fee under this section shall not be imposed more than once on a prearranged ride. A fee imposed under this section shall be adjusted annually for inflation on a calendar year basis from the year of enactment of P.L. , c. (C. ) (pending before the Legislature as this bill), and shall be collected by the transportation network company and paid quarterly in a calendar year.

b. No later than 30 days after the end of a calendar quarter, a transportation network company shall file the transportation service fees on a form prescribed and furnished by the Director of the Division of Taxation in the Department of the Treasury, and at that time shall indicate the number of prearranged rides provided during the previous quarter that are subject to a fee imposed pursuant to this section and pay the full amount due as required by this section.

c. Each transportation network company required to collect transportation service fees shall be personally liable for the fees imposed, collected, or required to be collected under this section. Any such transportation network company shall have the same right in respect to collecting the fees from a purchaser of a prearranged ride as if the fees were part of the sales price and payable at the same time.

d. The Director shall remit all revenues collected pursuant to this section to the “School Security Fund” pursuant to section 4 of P.L. , c. (C. ) (pending before the Legislature as this bill).

e. The fees imposed by this section shall be governed by the provisions of the “State Uniform Tax Procedure Law,” R.S.54:48-1 et seq., to the extent that the provisions of the law are not inconsistent with any provisions of P.L. , c. (C. ) (pending before the Legislature as this bill).

2. (New section) a. There is imposed a transportation service fee of $0.20 upon every autocab ride that is provided wholly within the boundaries of this State and that starts or ends in a municipality with a population exceeding 100,000 people and a population density exceeding 10,000 people per square mile, according to the latest federal decennial census. There is imposed a transportation service fee of $0.15 upon all other autocab rides provided wholly within the boundaries of this State. A transportation service fee under this section shall not be imposed more than once on an autocab ride. A fee imposed under this section shall be adjusted annually for inflation on a calendar year basis from the year of enactment of P.L. , c. (C. ) (pending before the Legislature as this bill), and shall be collected by the autocab owner and paid quarterly in a calendar year.

b. No later than 30 days after the end of a calendar quarter, an autocab owner shall file the transportation service fees on a form prescribed and furnished by the Director of the Division of Taxation in the Department of the Treasury, and at that time shall indicate the number of autocab rides provided during the previous quarter that are subject to a fee imposed pursuant to this section and pay the full amount due as required by this section.

c. Each autocab owner required to collect transportation service fees shall be personally liable for the fees imposed, collected, or required to be collected under this section. Any such autocab owner shall have the same right in respect to collecting the fees from a purchaser of an autocab ride as if the fees were part of the sales price and payable at the same time.

d. The Director shall remit all revenues collected pursuant to this section to the “School Security Fund” pursuant to section 4 of P.L. , c. (C. ) (pending before the Legislature as this bill).

2. (New section) a. There is imposed a transportation service fee of $0.20 upon every limousine ride that is provided wholly within the boundaries of this State and that starts or ends in a municipality with a population exceeding 100,000 people and a population density exceeding 10,000 people per square mile, according to the latest federal decennial census. There is imposed a transportation service fee of $0.15 upon all other limousine rides provided wholly within the boundaries of this State. A transportation service fee under this section shall not be imposed more than once on a limousine ride. A fee imposed under this section shall be adjusted annually for inflation on a calendar year basis from the year of enactment of P.L. , c. (C. ) (pending before the Legislature as this bill), and shall be collected by the limousine owner and paid quarterly in a calendar year.

b. No later than 30 days after the end of a calendar quarter, a limousine owner shall file the transportation service fees on a form prescribed and furnished by the Director of the Division of Taxation in the Department of the Treasury, and at that time shall indicate the number of limousine rides provided during the previous quarter that are subject to a fee imposed pursuant to this section and pay the full amount due as required by this section.

c. Each limousine owner required to collect transportation service fees shall be personally liable for the fees imposed, collected, or required to be collected under this section. Any such limousine owner shall have the same right in respect to collecting the fees from a purchaser of a limousine ride as if the fees were part of the sales price and payable at the same time.

d. The Director shall remit all revenues collected pursuant to this section to the “School Security Fund” pursuant to section 4 of P.L. , c. (C. ) (pending before the Legislature as this bill).

4. (New section) There is hereby established the “School Security Fund,” a dedicated account within the General Fund and administered by the Department of Education. The fund shall be the depository of moneys realized from section 1, 2 , and 3 of P.L. , c. (C. ) (pending before the Legislature as this bill).

All monies deposited in the “School Security Fund” shall be appropriated for expenses related to school security, as determined by the Commissioner of Education in consultation with the Attorney General.

5. Section 26 of P.L.2017, c.26 (C.39:5H-26) is amended to read as follows:

26. Notwithstanding any other provision of law, a transportation network company and a transportation network company driver shall be governed exclusively by P.L.2017, c.26 (C.39:5H-1 et seq.), any supplements or amendments thereto, and any rules promulgated by the commission or division pursuant to P.L.2017, c.26 (C.39:5H-1 et seq.).

A county or municipality shall not require a transportation network company or transportation network company driver to obtain a license or permit to provide a prearranged ride in that county or municipality, or require a driver to obtain a license or permit for the driver's personal vehicle in order to provide a prearranged ride in that county or municipality.

A county or municipality shall not impose a tax or fee that only applies to a transportation network company or transportation network company driver; provided that a transportation network company or driver shall be subject to a tax or fee that applies generally to all businesses or residents of the county or municipality.

Except for the initial and annual permit fee imposed pursuant to subsection b. of section 4 of P.L.2017, c.26 (C.39:5H-4) and the transportation service fee imposed and collected pursuant to section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill, the State shall not impose a tax or fee that only applies to a transportation network company or transportation network company driver; provided that, a transportation network company or driver shall be subject to a tax or fee that applies generally to all businesses or residents of the State.

Nothing in this section shall be construed to alter, supersede, or prohibit a financial access agreement between a transportation network company and a city of the first class with an international airport terminal, provided the transportation network company complies with all other provisions of P.L.2017, c.26 (C.39:5H-1 et seq.).

(cf: P.L.2017, c.26, s.26)

6. Notwithstanding the provisions of the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.) to the contrary, the Director of the Division of Taxation may adopt immediately upon filing with the Office of Administrative Law such rules and regulations as the director determines to be necessary to effectuate the purposes of P.L. , c. (C. ) (pending before the Legislature as this bill), which rules and regulations shall be effective for a period not to exceed 360 days following the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill) and may thereafter be amended, adopted, or readopted by the director in accordance with the requirements of the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.).

7. This act shall take effect immediately, but shall remain inoperative until the first day of the third month following enactment.

STATEMENT

This bill imposes a fee on certain prearranged rides provided by transportation network companies, and on certain limousine and autocab rides. For rides that start or end in municipalities that have over 100,000 people and a population density over 10,000 people per square mile, the fee is 20 cents. A 15 cents fee is imposed on all other rides. In either case, the fee is to be adjusted annually for inflation, and is only imposed if the ride is provided entirely within the State. The fee is higher in densely populated municipalities to incentivize using public transportation and reduce congestion in those municipalities.

The bill requires transportation network companies, limousine owners, and autocab owners to collect the fees and pay them quarterly in a calendar year. The fees are governed by the State Uniform Tax Procedure Law, and the Director of the Division of Taxation is authorized to immediately issue rules to effectuate the purpose of the bill.

The bill also establishes the “School Security Fund” within the General Fund and administered by the Department of Education. The money collected from the fees is to be deposited in the fund and to be used for school security purposes.

Extra time is given before the bill becomes operative to allow transportation network companies, limousine owners, autocab owners, and the Division of Taxation to take necessary preparatory action to comply with the bill.