ASSEMBLY BUDGET COMMITTEE

STATEMENT TO

ASSEMBLY, No. 5347

STATE OF NEW JERSEY

DATED:  JUNE 28, 2026

      The Assembly Budget Committee reports favorably Assembly Bill No. 5347.

      As reported, this bill modifies the municipal distribution requirements and rates for certain motor vehicle related funding. 

      The bill amends the mass transit access parking tax imposed pursuant to section 1 of P.L.2019, c.289 (C.40:48C-1.7).  In addition to the existing authorities permitted for the use of revenues from this tax, this bill permits a municipality with a population of 200,000 or greater that experienced a population increase of more than 15 percent between the 2010 and 2020 decennial censuses to impose this tax, and use these revenues for operating and administrative expenses related to the facilitation of mass transit. 

      The bill also amends “The Parking Offenses Adjudication Act,” P.L.1985, c.14 (C.39:4-139.2 et seq.).  Currently, $2 of each parking penalty assessed, when a failure to appear notice has been issued, is distributed to the municipal court.  This bill changes this $2 amount for a qualifying municipality to an allocation of 10 percent of each penalty.  The bill also provides the municipality with sole discretion in determining how to allocate the funds if the municipality has a population of 200,000 or greater and experienced a population increase of more than 15 percent between the 2010 and 2020 decennial censuses. 

      The bill also amends section 20 of P.L.2009, c.90 (C.40:48H-2) to permit a municipality with a population of 200,000 or greater that experienced a population increase of more than 15 percent between the 2010 and 2020 decennial censuses to collect a rental car tax regardless of the presence of a major airport.  Currently this tax may only be imposed in a municipality with a population of over 100,000 where a major airport is located.  The bill also removes a restriction providing that the tax may only be imposed on transactions that occur within a designated industrial zone of the municipality if the municipality has a population of 200,000 or greater and experienced a population increase of more than 15 percent between the 2010 and 2020 decennial censuses. 

      This bill is to take effect immediately.

FISCAL IMPACT:

      The Office of Legislative Services (OLS) concludes that the bill may result in an annual revenue increase of less than $10 million for the City of Jersey City associated with the authority to impose, by ordinance, a tax of up to five percent on the rental of motor vehicles occurring within the municipality. 

      The bill is also expected to result in shifts in the use of certain municipal revenues within the City of Jersey City including collections of the mass transit access parking tax and parking penalties.