Read the full stored bill text
S3969
SENATE, No. 3969
STATE OF NEW JERSEY
222nd LEGISLATURE
�
INTRODUCED MARCH 19, 2026
Sponsored by:
Senator� CARMEN F. AMATO, JR.
District 9 (Ocean)
SYNOPSIS
���� Establishes 90-day State tax amnesty period ending no
later than January 15, 2027; dedicates revenues collecting during tax amnesty
period for Stabilization Aid to school districts; appropriates up to $15
million.
CURRENT VERSION OF TEXT
���� As introduced.
��
An Act
providing for a State tax amnesty period, supplementing
Title 54 of the Revised Statues, and making an appropriation.
����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:
���� 1.� a.� (1) In addition to the
powers of the Director of the Division of Taxation prescribed under the State
Uniform Tax Procedure Law, R.S.54:48-1 et seq., and notwithstanding the
provision of any other law to the contrary, the director shall establish a
period not to exceed 90 days in duration, which period shall end no later than
January 15, 2027, during which a taxpayer who has failed to pay any State tax
on or before the day on which the tax is required to be paid may pay to the
director on or before the last day of the period established by the director
the amount of that tax and one-half of the balance of interest that is due as
of November 1, 2026, but without the remaining one-half of the balance of
interest that is due as of November 1, 2026 and without any late payment
penalty, late filing penalty, cost of collection, delinquency penalty, or
recovery fee as set forth in section 2 of P.L.1992, c.172 (C.54:49-12.3) that
may otherwise be due.� The taxpayer shall be required to pay any civil fraud or
criminal penalty arising out of an obligation imposed under any State tax law.�
This section shall apply only to State tax liabilities for tax returns due on
or after September 1, 2017 and prior to January 1, 2026 and shall not extend to
any taxpayer who at the time of payment is under criminal investigation or
charge for any State tax matter, as certified by a county prosecutor or the
Attorney General to the director.
���� (2) Notwithstanding the
provisions of any other law to the contrary, no taxpayer shall be entitled to a
waiver of one-half of the balance of interest due as of November 1, 2026 or any
penalty and recovery fee pursuant to this section unless full payment of the
tax and one-half of the balance of interest due as of November 1, 2026 is made
in accordance with the rules and procedures established by the director.
���� b.��� There shall be imposed a
penalty of five percent, which shall not be subject to waiver or abatement, in
addition to all other penalties, interest, or costs of collection otherwise
authorized by law, upon any State tax liabilities eligible to be satisfied
during the period established pursuant to subsection a. of this section that
are not satisfied during the amnesty period.
���� c.���� Notwithstanding the
provision of any other law or regulation to the contrary, if a taxpayer elects
to participate in the program, established pursuant to this section, as that
election shall be evidenced by full payment pursuant to this section of a State
tax liability to which this section applies pursuant to subsection a. of this
section, then that election shall constitute an express and absolute
relinquishment of all administrative and judicial rights of appeal that have
not run or otherwise expired as of the date the payment is made.� The
relinquishment of rights of appeal pursuant to this section shall apply with
respect to all rights of appeal established pursuant to the State Uniform Tax Procedure
Law, R.S.54:48-1 et seq., and the specific statutory provisions of any State
tax.� No tax payment made pursuant to this section shall be eligible for a
refund or credit, whether claimed by administrative protest or judicial
appeal.�
���� d.��� Notwithstanding the
provisions of any other law to the contrary, no amnesty payment shall be
accepted without the express approval of the director with respect to any State
tax assessment which is the subject of any administrative or judicial appeal as
of the effective date of P.L.��� , c.��� (C.������ ) (pending before the
Legislature as this bill).�
���� e.���� No person shall be
eligible for amnesty under this section if the person has been notified by the
Office of Criminal Investigation in the Division of Taxation that the person is
under criminal investigation for a State tax matter, unless the Office of Criminal
Investigation certifies to the director that the State tax matter involving the
person was resolved.
���� f.���� Notwithstanding any
provision of law to the contrary, no taxpayer shall be eligible for amnesty
under this section unless that taxpayer pays the full amount of the tax,
reduced interest, and applicable penalties, if any, in accordance with rules
and procedures established by the director.� If the taxpayer has not previously
filed a tax return to report the tax due for which the taxpayer is seeking to
pay pursuant to this section, the taxpayer shall file the required return or
returns on or before the last day of the period established by the director
pursuant to subsection a. of this section.
���� g.��� Notwithstanding any
provision of the �Administrative Procedure Act,� P.L.1968, c.410 (C.52:14B-1 et
seq.) to the contrary, the director may adopt immediately upon filing with the
Office of Administrative Law such regulations as the director deems necessary
to implement the provisions of this section, which regulations shall be
effective for a period not to exceed 180 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 �Administrative Procedure Act,� P.L.1968, c.410 (C.52:14B-1 et seq.).
���� 2.��� a.� There is established
in the Department of Education a nonlapsing, revolving , dedicated special
account designated as the Stabilization Aid Account.� All monies collected by
the Department of the Treasury pursuant to section 1 of P.L.��� , c.��� (C.������
) (pending before the Legislature as this bill) shall be credited to the
account, except the amount of revenue otherwise dedicated pursuant to Article
VIII, Section II, paragraphs 4, 6, and 7 of the New Jersey Constitution.�
Except as otherwise appropriated pursuant to section 3 of P.L.��� , c.���
(C.������ ) (pending before the Legislature as this bill) all monies deposited
in the Stabilization Aid Account shall be used solely to provide Stabilization
Aid to school districts pursuant to subsection b. of this section.
���� b.��� In addition to any other
school aid provided pursuant to the provisions of P.L.2007, c.62 (C.18A:7F-43
et al.), a school district may receive Stabilization Aid if the school district
experiences a reduction in State school aid compared to the prior school year.�
To receive Stabilization Aid a school district shall submit an application to
the Commissioner of Education, in a manner and form prescribed by the
commissioner, except that the application section shall include, at a minimum,
a written plan explaining how the school district intends to fund operations in
future years in which the school district does not receive Stabilization Aid or
similar supplemental school aid.� The commissioner shall determine the amount
to be awarded to each school district that submits an application for
Stabilization Aid.
���� 3.��� There is appropriated to
the Division of Taxation in the Department of the Treasury an amount not to
exceed $15,000,000 from the amount deposited into the Stabilization Aid Account
to carry out and administer the tax amnesty program established pursuant to the
provisions of section 1 of P.L.��� , c.���� (C.������ ) (pending before the
Legislature as this bill).
���� 4.��� Notwithstanding the
provisions of any other law to the contrary, a contract for advertising
services for the State tax amnesty program established pursuant to section 1 of
P.L.��� , c.��� (C.������ ) (pending before the Legislature as this bill) shall
be procured in an expedited manner.� The Division of Taxation may, to the
extent necessary, waive or modify any other law or regulation that may
interfere with the expeditious procurement of these services.
���� 5.��� This act shall take
effect immediately, provided, however that section 4 shall expire upon the
awarding of the advertising services contract.�
STATEMENT
���� This bill requires the
Director of the Division of Taxation in the Department of the Treasury to
establish a 90-day State tax amnesty period, to end no later than January 15,
2027.�
���� The amnesty period would apply
only to State tax liabilities for tax returns due on and after September 1,
2017 and before January 1, 2026.� During the amnesty period, a taxpayer who has
failed to pay a State tax can pay the amount of unpaid tax and one-half of the
balance of interest that is due as of November 1, 2026, without the imposition
of the remaining one-half of the balance of the interest that is due as of
November 1, 2026, recovery fees, civil penalties, and criminal penalties
arising out of the late payment.� The amnesty would not be available to a
taxpayer who, at the time of the payment, is under criminal investigation or
charge for any State tax matter.
���� If a taxpayer eligible for the
amnesty fails during the amnesty period to pay taxes owed, the bill subjects
that taxpayer to a five percent penalty, which the director may not waive or
abate.� The five percent penalty would be in addition to all other penalties,
interest, or collection costs otherwise authorized by law.� If a person is
notified by the Office of Criminal Investigation in the Division of Taxation
that the person is under criminal investigation for a State tax matter, they
would not be eligible for amnesty under the program unless the Office of
Criminal Investigation certifies to the director that the State tax matter
involving the person was resolved.� Further a taxpayer would not be eligible
for amnesty under the bill unless that taxpayer pays the full amount of the
tax, reduced interest, and applicable penalties, if any, in accordance with the
rules and procedures established by the director.
���� The bill establishes a
dedicated account in the Department of Education to be known as the
Stabilization Aid Account and requires all of the moneys collected by the State
through the tax amnesty program, excluding certain revenues dedicated for
specific purposes by the State Constitution, to be deposited into the special
account for the purpose of providing Stabilization Aid to school districts that
experience a reduction in State aid compared to the prior school year. To
receive Stabilization Aid, a school district would be required to submit an
application to the Commissioner of Education.� The bill requires the
application to include, at a minimum, a written plan explaining how the school
district intends to fund operations in future school years in which the school
district does not receive Stabilization Aid or similar supplemental State
school aid.�
���� The bill appropriates a sum
not to exceed $15 million from the proceeds collected through the amnesty
period for the costs incurred to carry out and administer the program.� The
bill requires a contract for advertising services for the State tax amnesty program
to be procured in an expedited manner.