ASSEMBLY, No. 5472

STATE OF NEW JERSEY

218th LEGISLATURE

 

INTRODUCED JUNE 6, 2019

 


 

Sponsored by:

Assemblyman  ANTHONY M. BUCCO

District 25 (Morris and Somerset)

Assemblywoman  BETTYLOU DECROCE

District 26 (Essex, Morris and Passaic)

 

 

 

 

SYNOPSIS

     Exempts certain non-profit entities from requirement that certain employers offer employees certain pre-tax transportation fringe benefits.

 

CURRENT VERSION OF TEXT

     As introduced.

  


An Act concerning pre-tax transportation fringe benefits and amending P.L.2019, c.38.

 

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

 

     1.    Section 2 of P.L.2019, c.38 (C.27:26A-16) is amended to read as follows: 

     2.    a.  Every employer in the State of New Jersey that employs at least 20 persons shall offer to all of that employer’s employees the opportunity to utilize a pre-tax transportation fringe benefit.

     b.    Notwithstanding the provisions of subsection a. of this section, an employer shall not be required to offer the opportunity to utilize a pre-tax transportation fringe benefit to employees covered by a collective bargaining agreement until the expiration of any collective bargaining agreement covering those employees that is in effect on the effective date of P.L.2019, c.38 (C.27:26A-16 et al.).

     c.     If an employee is employed by the federal government and that employee is eligible for a benefit through the person’s employment with the federal government for a transit benefit that is equal to or greater than a pre-tax transportation fringe benefit, then the federal government shall not be required to provide those employees the opportunity to utilize a pre-tax transportation fringe benefit.

     d.    The requirements of subsection a. of this section shall not apply to an entity that is a tax-exempt non-profit organization under paragraph (3) of subsection c. of section 501 of the Internal Revenue Code (26 U.S.C. s.501).

(cf: P.L.2019, c.38, s.2)

 

     2.    This act shall take effect immediately.

 

 

STATEMENT

 

     This bill provides that an entity organized under 26 U.S.C. s.501c(3) is exempt from the requirement under current law that all employers in this State that employ at least 20 persons offer all of that employer’s employees the opportunity to utilize a pre-tax transportation fringe benefit.

     Under current federal law, non-profit organizations are taxed on contributions to the pre-tax transportation fringe benefit at the federal corporate tax rate of 21 percent.  This tax rate burdens non-profit organizations that are required to participate in the transportation fringe benefit.