ASSEMBLY, No. 5518

STATE OF NEW JERSEY

221st LEGISLATURE

 

INTRODUCED MARCH 24, 2025

 

 

Sponsored by:

Assemblyman  CODY D. MILLER

District 4 (Atlantic, Camden and Gloucester)

Assemblyman  DAN HUTCHISON

District 4 (Atlantic, Camden and Gloucester)

 

 

 

 

SYNOPSIS

     Imposes 30 percent electric public utility windfall surtax on certain taxpayers with allocated taxable net income in excess of 20 percent above five-year average income under CBT.

 

CURRENT VERSION OF TEXT

     As introduced.

  

An Act establishing an electric public utility windfall surtax and supplementing P.L.1945, c.162 (C.54:10A-1 et seq.).

 

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

 

     1.    a.  For the purposes of this section:

     "Allocated taxable net income" means taxable net income as defined in subsection (w) of section 4 of P.L.1945, c.162 (C.54:10A-4).

     "Electric public utility" means a public utility, as that term is defined in R.S.48:2-13, that transmits and distributes electricity to end users within this State.

     "Taxpayer" means an electric public utility that is subject to tax as provided in the "Corporation Business Tax Act (1945)," P.L.1945, c.162 (C.54:10A-1 et seq.).

     "Windfall income" means the amount of allocated taxable net income in excess of a taxpayer that is 20 percent greater than the average allocated taxable net income of the taxpayer during the five privilege periods immediately preceding the privilege period in which the public utility windfall surtax is due and payable.

     b.    In addition to the tax paid by each taxpayer determined pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5), each taxpayer that has windfall income for a privilege period beginning on or after January 1 of the calendar year next following the effective date of P.L.    , c.     (pending before the Legislature as this bill) shall pay a surtax, to be known as the electric public utility windfall surtax, equal to 30 percent of the windfall income of the taxpayer for the privilege period.  The electric public utility windfall tax shall be due and payable in accordance with section 15 of P.L.1945, c.162 (C.54:10A-15) and shall be administered pursuant to the provisions of P.L.1945, c.162 (C.54:10A-1 et seq.).  Notwithstanding the provisions of any other law to the contrary, no credits shall be allowed against the electric public utility windfall surtax computed under this section except for credits for installment payments, estimated payments made with a request for an extension of time for filing a return, or overpayments from prior privilege periods.

     c.     Notwithstanding any other provision of law to the contrary, the gross amount of all revenues received by the State from the electric public utility windfall surtax pursuant to this section, except for amounts credited to the special account in the General Fund created pursuant to Article VIII, Section II, paragraph 6 of the New Jersey Constitution, shall be annually appropriated to the Board of Public Utilities for distribution to the ratepayers of each electric public utility subject to the electric public utility windfall surtax.  The Board of Public Utilities shall prescribe the method by which the funds appropriated from the surtax proceeds are distributed, provided that the proceeds shall be distributed proportionally among all ratepayers of the electric public utility.

 

     2.    This act shall take effect immediately and shall apply to privilege periods beginning on or after January 1 of the year next following the enactment of P.L.    , c.     (C.        ) (pending before the Legislature as this bill).

 

 

STATEMENT

 

     This bill imposes a 30 percent surtax, to be called the electric public utility windfall surtax, on the windfall income of electric public utilities.

     Under the bill, "windfall income" means the amount of allocated taxable net income of an electric public utility that is 20 percent greater than the average allocated taxable net income of the utility during the five immediately preceding privilege periods.  The bill defines "allocated taxable net income" to mean the same as the term "taxable net income" is defined in the "Corporation Business Tax Act" for purposes of calculating a taxpayer's corporation business tax liability.

     The electric public utility windfall surtax is to be imposed in addition to the taxpayer's regular corporation business tax liability.  No credits are to be allowed against the electric public utility windfall surtax, except for credits for installment payments, estimated payments made with a request for an extension of time for filing a return, or overpayments from prior privilege periods.

     All revenues collected from the electric public utility windfall surtax, except for amounts constitutionally dedicated for open space, farmland, and historic preservation, are to be annually appropriated to the Board of Public Utilities (board) for distribution to the ratepayers of each electric public utility subject to the electric public utility surtax.  The bill requires the board to prescribe the method by which the funds appropriated from surtax proceeds are distributed, except that these monies are required to be distributed proportionally among all ratepayers of the electric public utility.