SENATE BUDGET AND APPROPRIATIONS COMMITTEE

STATEMENT TO

SENATE, No. 4514

STATE OF NEW JERSEY

DATED:  JUNE 28, 2026

      The Senate Budget and Appropriations Committee reports favorably Senate Bill No. 4514.

      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 permissible uses of revenues derived from this tax under current law, this bill permits a qualifying municipality with a population of 200,000 or greater that has experienced a population increase of more than 15 percent between the 2010 and 2020 decennial censuses to impose this tax and use those 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.).  Current law provides that, out of each parking penalty assessed and disbursed to the municipality in cases in which a failure to appear notice was issued, $2 is distributed to the municipal court.  This bill provides that, with respect to a parking penalty assessed specifically in a qualifying municipality, 10 percent of each penalty would be distributed to the municipal court.  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 has 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.
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.