S4639

An Act imposing taxes and fees related to tourist flights and supplementing Title 54 of the Revised Statutes.

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

1. As used in P.L. , c. (C. ) (pending before the Legislature as this bill):

"Airport" means a designated area of land, water, or both, which is licensed by the Department of Transportation for the landing and takeoff of airplanes, helicopters, seaplanes and other aircraft, and which may provide facilities for shelter, security, and service of aircraft.

"Emergency medical transportation" shall have the same meaning as provided in section 1 of P.L.1986, c.106 (C.26:2K-35).

“Helicopter” means a rotary wing aircraft that depends principally upon the lift generated by engine-driven rotors rotating on a substantially vertical axis for its primary means of propulsion.

"Heliport" means a dedicated area of defined dimensions, either at ground level or elevated on a structure, designated for the landing or takeoff of helicopters and used solely for that purpose.

"Helistop" means an area of defined dimensions, either at ground level or elevated on a structure designated for the landing or take off of helicopters, but not limited in use to that sole purpose.

“News agency” means a commercial organization that collects and supplies news to subscribing newspapers, magazines, periodicals, and news broadcasters.

“Non-essential helicopter or seaplane” means any helicopter or seaplane, other than those:

(1) owned or operated by a federal or military authority, the State or a political subdivision thereof, a news agency, or a licensed hospital or healthcare provider;

(2) providing emergency medical transportation;

(3) providing heavy-lift operations in support of construction or infrastructure maintenance; or

(4) operating a flight for research, experimental, or educational purposes.

“Seaplane” means any aircraft defined or classified as such by federal law, rule, or regulation.

“Tourist flight” means a flight on a non-essential helicopter or seaplane that operates for the purpose of providing sightseeing tours to patrons in areas including, but not limited to, the Hudson River between New Jersey and New York City, the Statue of Liberty, and Ellis Island.

2. a. There is imposed on the patron of a tourist flight a tax in an amount equal to $50 per seat or $200 per flight, whichever is greater, on a tourist flight departing from, or arriving at, any aviation facility licensed by the State including, but not limited to, airports, heliports, and helistops.

b. The tax imposed under this section shall be collected by the owner or operator of a non-essential helicopter or seaplane that operates a tourist flight, and shall be separately stated on the retail sales receipt provided to the patron of the tourist flight pursuant to section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill).

c. Each owner or operator of a non-essential helicopter or seaplane that operates a tourist flight shall be personally liable for the tax imposed, collected, or required to be collected under this section. Any such person shall have the same rights with respect to collecting the tax from a patron as if the tax were a part of the sales price and payable at the same time.

d. In carrying out the provisions of this section, the Director of the Division of Taxation in the Department of the Treasury shall have all the powers and authority granted in P.L.1966, c.30 (C.54:32B-1 et seq.). The tax shall be filed and paid by the owner or operator of the non-essential helicopter or seaplane that operates a tourist flight on a quarterly basis in a manner prescribed by the director. The director shall promulgate such rules and regulations as the director determines are necessary to effectuate the provisions of this section.

e. The tax imposed by this section shall be governed by the provisions of the “State Uniform Tax Procedure Law,” R.S.54:48-1 et seq.

3. Within 48 hours following the completion of a tourist flight, the owner or operator of the non-essential helicopter or seaplane shall provide the patron of the tourist flight with an electronic receipt, which shall include:

a. the points of origin and destination of the tourist flight;

b. the total time and distance of the tourist flight;

c. an itemization of the total number of seats purchased for the tourist flight; and

d. the amount of the tax imposed pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill).

4. a. Beginning on the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), the Director of the Division of Taxation in the Department of the Treasury shall impose an assessment in an amount equal to three percent of the gross receipts received by:

(1) the owner or operator of a non-essential helicopter or seaplane for tourist flight service operations; and

(2) the owner or operator of a heliport or helistop licensed by the State for tourist flights departing or arriving from such heliport or helistop.

b. Each owner or operator of a non-essential helicopter or seaplane that operates a tourist flight, and each owner or operator of a heliport or helistop that is required to pay the assessment imposed by this section shall be personally liable for the assessment due to the director.

c. In carrying out the provisions of this section, the Director of the Division of Taxation in the Department of the Treasury shall have all the powers and authority granted in P.L.1966, c.30 (C.54:32B-1 et seq.). The assessment shall be filed and paid by the owner or operator of the non-essential helicopter or seaplane that operates a tourist flight that is subject to the assessment pursuant to this section, or the owner or operator of a heliport or helistop from which a tourist flight departs from, or arrives at, on a quarterly basis in a manner prescribed by the director. The director shall promulgate such rules and regulations as the director determines are necessary to effectuate the provisions of this section.

d. The tax imposed by this section shall be governed by the provisions of the “State Uniform Tax Procedure Law,” R.S.54:48-1 et seq.

5. 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.).

6. This act shall take effect immediately but shall remain inoperative until the adoption of rules and regulations pursuant to section 5 of this act.

STATEMENT

This bill imposes a tax on tourist flights departing from, or arriving at airports, heliports and helistops licensed by the State; and imposes an assessment on the gross receipts received by the owners or operators of helicopters or seaplanes that operate tourist flights, as well as on the owners of heliports and helistops from which a tourist flight departs from, or arrives at, in the State.

Specifically, the bill imposes on the patron of a tourist flight a tax in an amount equal to $50 per seat or $200 per flight, whichever is greater, on a tourist flight departing from, or arriving at, any aviation facility licensed by the State including, but not limited to, airports, heliports, and helistops. However, the tax would not be imposed on flights involving the following types of helicopters or seaplanes, namely those: (1) owned or operated by a federal or military authority, the State or a political subdivision thereof, a news agency, or a licensed hospital or healthcare provider; (2) providing emergency medical transportation; (3) providing heavy-lift operations in support of construction or infrastructure maintenance; or (4) operating a flight for research, experimental, or education purposes.

A tourist flight is defined as a flight on a non-essential helicopter or seaplane that operates for the purpose of providing sightseeing tours to patrons in areas including, but not limited to, the Hudson River between New Jersey and New York City, the Statue of Liberty, and Ellis Island. A non-essential helicopter or seaplane is defined as helicopter or seaplane that is not specifically excluded under the bill.

Under the bill, the owner or operator of a non-essential helicopter or seaplane operating a tourist flight would be required to collect the tax imposed on the patron of the tourist flight, and separately state the tax on the retail sales receipt provided to the patron. The owner or operator of a non-essential helicopter or seaplane operating a tourist flight would have the same rights with respect to collecting the tax from a patron as if the tax were a part of the sales price and payable at the same time. The bill also requires the owner or operator of a non-essential helicopter or seaplane operating a tourist flight to provide an electronic receipt to the patron.

The bill requires the owner or operator of a non-essential helicopter or seaplane operating a tourist flight to file the tax with, and pay the tax to, the State on a quarterly basis in a manner prescribed by the director.

Lastly, the bill imposes an assessment in an amount equal to three percent of the gross receipts that the owner or operator of a non-essential helicopter or seaplane receives for tourist flight service operations, as well as three percent of the gross receipts that an owner or operator of a heliport or helistop licensed by the State receives from departing and arriving tourist flights. The bill requires the owner or operator of a non-essential helicopter or seaplane operating a tourist flight, and the owner of a heliport or helistop licensed by the State from which a tourist flight departs or arrives, to file the assessment with, and pay the assessment to, the State on a quarterly basis in a manner prescribed by the director.