Sponsored by:
Senator RAJ MUKHERJI
District 32 (Hudson)
SYNOPSIS
Authorizes certain cities to impose tax on billboard revenues to be collected by retail seller of billboard.
CURRENT VERSION OF TEXT
As introduced.
An Act authorizing certain municipalities to impose a tax on billboard revenue and supplementing Title 40 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. This act shall be known and may be cited as the "Local Billboard Tax Act."
2. As used in P.L. , c. (C. ) (pending before the Legislature as this bill):
"Advertising space" means the placement of advertising on an outdoor sign;
"Billboard" means a sign required to be permitted pursuant to the "Roadside Sign Control and Outdoor Advertising Act," P.L.1991, c.413 (C.27:5-5 et seq.);
"End user" means the person purchasing the advertising space on a billboard;
"Gross amounts collected by a retail seller for advertising space on an outdoor advertising sign" include, but are not limited to, amounts collected, whether received in money or otherwise, from contracts to place advertising on billboards located in the city, regardless of the location of the advertiser;
"Retail seller" means a permit holder or licensee who contracts with the end user for outdoor advertising space on a billboard or a party that is authorized on behalf of a permit holder or licensee to sell advertising space on a billboard.
3. The governing body of a city of the first class may enact, amend, repeal, and enforce an ordinance imposing in the city a tax, not to exceed six percent, on the gross amounts collected by a retail seller for advertising space on a billboard. The tax shall be imposed on the end user.
4. a. A tax imposed by ordinance pursuant to section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill) shall be collected on behalf of the city by the retail seller of a billboard.
b. A retail seller of a billboard who is required to collect a tax imposed by ordinance pursuant to section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill) shall, on a quarterly basis, remit all amounts collected to the chief financial officer of the city together with a return for the preceding quarter indicating the revenue and taxes as well as any other information that the chief financial officer deems necessary to determine the correct liability for the tax during the preceding quarter. The tax and return shall be due on or before the dates on which municipal real property taxes are due.
c. The retail seller of a billboard shall be personally liable for the tax imposed, collected, or required to be collected pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill).
d. The city shall enforce the payment of delinquent billboard taxes in the same manner as provided for municipal real property taxes.
5. The tax authorized pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill) shall be in addition to any other tax imposed by law.
6. This act shall take effect immediately.
STATEMENT
This bill authorizes a city of the first class to impose by ordinance a tax of up to six percent on amounts derived from the rental of advertising space on a billboard. N.J.S.A.40A:6-4 provides that first class cities are cities having a population of more than 150,000, according to the most recent Federal decennial census. Currently, Newark City, Jersey City, and Paterson City are the only New Jersey cities of the first class.
The bill provides that the retail seller of advertising space on a billboard is to collect the tax on behalf of the city that has imposed the tax and is to remit amounts collected to the chief financial officer of the city on a quarterly basis. The bill also requires a retail seller of advertising space on a billboard to provide the chief financial officer with a return for the preceding quarter indicating the revenue and taxes and any other information that the chief financial officer deems necessary to determine the correct liability for the tax during the preceding quarter. The tax and return is to be due on or before the dates on which municipal real property taxes are due.
Under the bill, the retail seller of advertising space on a billboard is to be personally liable for the tax imposed, collected, or required to be collected. The bill authorizes the city to enforce the payment of delinquent billboard taxes in the same manner as provided for municipal real property taxes.
The local billboard tax would be in addition to any other tax imposed by law.