Imposes temporary surtax on taxpayers that receive certain tariff refunds; dedicates surtax revenues towards consumer price relief.

A5227

ASSEMBLY, No. 5227

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED JUNE 8, 2026

Sponsored by:

Assemblyman� BALVIR SINGH

District 7 (Burlington)

SYNOPSIS

���� Imposes temporary surtax on taxpayers that receive
certain tariff refunds; dedicates surtax revenues towards consumer price
relief.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act
imposing a temporary surtax on taxpayers that receive
certain tariff refunds and supplementing Title 54 of the Revised Statutes.

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

���� 1. �a. �For the purposes of
this section:

���� �Apportioned tariff refund�
means the amount of the qualified tariff refunds received by a taxpayer during
the privilege period, multiplied by the taxpayer�s allocation factor for the
privilege period, as determined pursuant to section 6 of P.L.1945, c.162
(C.54:10A-6).

���� �Director� means the Director
of the Division of Taxation in the Department of the Treasury.

���� �Qualified tariff� and
�tariff� mean a tariff paid by a taxpayer that was imposed by the President of
the United States pursuant to the federal International Emergency Economic
Powers Act, 50 U.S.C. s.1701 et seq., through the issuance of any of the
following:

���� Presidential Proclamation
Number 10886, 90 Fed. Reg. 8327;

���� Executive Order No. 14193, 90
Fed. Reg. 9113;

���� Executive Order No. 14194, 90
Fed. Reg. 9117;

���� Executive Order No. 14195, 90
Fed. Reg. 9121; or

���� Executive Order No. 14257, 90
Fed. Reg. 15041.

���� �Qualified tariff refund� and
�refund� mean a refund that is required to be issued by the United States
Customs and Border Protection by court order, through a process established by
that agency, for the amount of a qualified tariff, plus interest, except not
including any refund received by a taxpayer before the effective date of
P.L.��� , c.��� (C.������� ) (pending before the Legislature as this bill).

���� �Taxpayer� means any business
entity or combined group that is subject to tax under the Corporation Business
Tax (1945), P.L.1945, c.162 (C.54:10A-1 et seq.).

���� b.��� In addition to the tax
paid by each taxpayer pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5),
for privilege periods beginning on or after January 1, 2026, but before January
1, 2031, a taxpayer shall be assessed and shall pay a surtax equal to 90
percent of the amount of the apportioned tariff refund received by the taxpayer
during the privilege period.� Notwithstanding the provisions of any other law
to the contrary, no credits shall be allowed against the surtax liability
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.���� The surtax shall be due
and payable in accordance with section 15 of P.L.1945, c.162 (C.54:10A-15), and
the surtax shall be administered pursuant to the provisions of P.L.1945, c.162
(C.54:10A-1 et seq.), except that the director may require each taxpayer to
submit such information and documentation as may be necessary to verify:

���� (1)�� the total amount of the
qualified tariffs paid by the taxpayer; and

���� (2)�� the total amount of
qualified tariff refunds received by the taxpayer.

���� d.��� There is established a
special, nonlapsing account within the General Fund, to be known as the �New
Jersey Consumer Tariff Relief Fund,� into which all revenues generated from the
surtax imposed pursuant to this section shall be credited.� The monies in the
account shall be dedicated and annually appropriated by the Legislature for the
following purposes:

���� (1)�� the provision of grants,
through a competitive application process, to small businesses impacted by
price increases related to the imposition of qualified tariffs;

���� (2)�� the issuance of rebates,
with priority given to low- and moderate-income households, to alleviate the
impact of price increases related to the imposition of qualified tariffs; and

���� (3)�� the enforcement of
consumer protection laws through appropriate State agencies.

���� 2.��� The Director of the
Division of Taxation in the Department of the Treasury shall, in accordance
with the �Administrative Procedure Act,� P.L.1968, c.410 (C.52:14B-1 et seq.),
adopt rules and regulations as necessary to implement the provisions of P.L.���
, c.��� (C.������� ) (pending before the Legislature as this bill).

���� 3.��� This act shall take
effect immediately and shall apply to qualified tariff refunds issued on or
after the effective date.

STATEMENT

���� This bill imposes a temporary
five-year surtax on certain tariff refunds received by corporation business
taxpayers and dedicates the revenues collected from the surtax towards consumer
price relief.�

���� Specifically, the surtax would
be equal to 90 percent of the apportioned tariff refunds received by a taxpayer
during each year.� The surtax would be imposed in addition to the corporation
business tax for privilege periods beginning on or after January 1, 2026 but
before January 1, 2030.�

���� The bill defines an �apportioned
tariff refund� as the amount of the qualified tariff refunds received by a
taxpayer during the privilege period, multiplied by the taxpayer�s allocation
factor for the privilege period.� A �qualified tariff refund� would include any
refund that is required to be issued by the United States Customs and Border
Protection by court order, through a process established by the agency, for the
amount of a qualified tariff, plus interest, and excluding any refunds received
before the date of the bill�s enactment.� The bill also defines a �qualified
tariff� as a tariff paid by a taxpayer that was imposed by the President of the
United States pursuant to the federal International Emergency Economic Powers
Act in certain cases with the justification of addressing certain foreign
threats related to the flow of illegal drugs and trade deficits.

���� The bill also establishes a
special, nonlapsing account within the General Fund to be known as the �New
Jersey Consumer Tariff Relief Fund,� into which all revenues generated from the
surtax imposed pursuant to the bill would be credited.� The monies in the
account are required to be dedicated and annually appropriated by the
Legislature for any of the following purposes:

���� (1)�� the provision of grants,
through a competitive application process, to small businesses impacted by
price increases related to the imposition of qualified tariffs;

���� (2)�� the issuance of rebates,
with priority given to low- and moderate-income households, to alleviate the
impact of price increases related to the imposition of qualified tariffs; and

���� (3)�� the enforcement of
consumer protection laws through appropriate State agencies.