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S4111
SENATE, No. 4111
STATE OF NEW JERSEY
222nd LEGISLATURE
�
INTRODUCED MAY 4, 2026
Sponsored by:
Senator� PAUL A. SARLO
District 36 (Bergen and Passaic)
SYNOPSIS
���� Imposes temporary surcharges on certain transactions
to support preparations for hosting of special events.
CURRENT VERSION OF TEXT
���� As introduced.
��
An Act
imposing temporary surcharges on certain transactions
to support preparations for the hosting of special events.
����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:
���� 1.� a.� In addition to any
other tax, assessment, or use fee authorized by law, there is imposed and shall
be paid a hotel and motel occupancy surcharge of 2.5 percent for occupancies on
and after June 12, 2026 but before July 21, 2026 upon the rent for every
occupancy of a room or rooms in a hotel or transient accommodation, except
occupancies of a room or rooms located in a county of the fifth class or a
county of the sixth class, subject to taxation pursuant to subsection (d) of
section 3 of P.L.1966, c.30 (C:54:32B-3).� The surcharge imposed pursuant to
this section shall be collected from the customer and shall be paid by each
person required to collect the surcharge to the Director of the Division of
Taxation in the Department of the Treasury no later than the 20th day of each
month based on the occupancy of rooms in that hotel or transient accommodation
during the previous calendar month.� The surcharge imposed under this section
shall be in addition to any other tax or fee imposed pursuant to statute or
local ordinance or resolution by any governmental entity upon the occupancy of
a room or rooms in a hotel or transient accommodation; provided, however, the
surcharge shall not be subject to any other tax or fee imposed on the
occupancy.
���� b.��� The surcharge imposed
pursuant to this section shall be collected and administered by the Director of
the Division of Taxation in the Department of the Treasury.� In carrying out
the provisions of this section, the director shall have all the powers granted
under the �Sales and Use Tax Act,� P.L.1966, c.30 (C.54:32B-1 et seq.).
���� c.���� The surcharge imposed pursuant
to this section shall be governed by the provisions of the "State Uniform
Tax Procedure Law," R.S.54:48-1 et seq.
���� d.��� The surcharge imposed pursuant
to this section shall not be imposed on the rent for an occupancy if the
purchaser, user, or consumer is an entity exempt from the tax imposed on an
occupancy pursuant to subsection (a) of section 9 of P.L.1966, c.30
(C.54:32B-9).
���� e.���� Monies received from
the surcharge imposed pursuant to this section shall be deposited in the
General Fund.
���� f.���� The terms used in this
section shall mean the same as those terms are defined �pursuant to section 2
of P.L.1966, c.30 (C.54:32B-2).
���� 2.� a.� In addition to any
other tax, assessment, or use fee authorized by law, beginning on and after
June 12, 2026 but on or before July 21, 2026, there are imposed the following
surcharges in the Meadowlands district:
���� (1) �a surcharge at the rate
of three percent on the receipts from every sale within the district of
tangible personal property subject to taxation pursuant to subsection (a) of
section 3 of P.L.1966, c.30 (C.54:32B-3);
���� (2) �a surcharge at the rate
of three percent on the receipts from every sale within the district of
prepared food, soft drinks, and alcoholic beverages subject to taxation
pursuant to P.L.1966, c.30 (C.54:32B-1 et seq.); and
���� (3) �a surcharge at the rate
of three percent on every admission charge to a place of amusement within the
district subject to taxation pursuant to subsection (e) of section 3 of
P.L.1966, c.30 (C.54:32B-3).
���� b. �The surcharge imposed
under this section shall be collected from the customer and shall be paid to
the Director of the Division of Taxation in the Department of the Treasury by
each person required to collect or pay the surcharge no later than the 20th day
of each month based on the sales subject to the surcharge imposed by this
section during the previous calendar month.� The surcharge imposed under this
section shall be in addition to any other tax or fee imposed pursuant to
statute or local ordinance or resolution by any governmental entity upon a sale
subject to the surcharge; provided, however, the surcharge shall not be subject
to any other tax or fee imposed on such sales.
���� c. �The surcharge imposed
pursuant to this section shall be collected and administered by the Director of
the Division of Taxation in the Department of the Treasury.� In carrying out
the provisions of this section, the director shall have all the powers granted
under the �Sales and Use Tax Act,� P.L.1966, c.30 (C.54:32B-1 et seq.).
���� d. �The surcharge imposed by
this section shall be governed by the provisions of the "State Uniform Tax
Procedure Law," R.S.54:48-1 et seq.
���� e. �The surcharge imposed by
this section shall not be imposed on sales if the purchaser, user, or consumer
is an entity exempt from the tax imposed on such sales pursuant to subsection
(a) of section 9 of P.L.1966, c.30 (C.54:32B-9).
���� f. �Monies received from the
surcharge imposed pursuant to this section shall be deposited in the General
Fund.
���� g. �(1) The terms used in this
section shall mean the same as those terms are defined pursuant to section 2 of
P.L.1966, c.30 (C.54:32B-2).
���� (2)� �Meadowlands district�
means the same as that term is defined in section 84 of P.L.2015, c.19
(C.5:10A-84).
���� 3.� a.� In addition to any
other tax, assessment, or use fee authorized by law, there is imposed on a
transportation network company rider a surcharge of $0.50 on and after June 12,
2026 but before July 21, 2026 upon every prearranged ride that originates
within the State and terminates in the Meadowlands district or that originates
in the Meadowlands district and terminates within the State.� The surcharge
imposed under this section shall be collected from the customer and shall be
paid to the Director of the Division of Taxation in the Department of the
Treasury by the transportation network company no later than the 20th day of
each month following the close of the calendar month during which the surcharge
was collected.� The surcharge imposed under this section shall be separately
stated on the electronic receipt provided to the rider pursuant to section 9 of
P.L.2017, c.26 (C.39:5H-9).� The surcharge imposed under this section shall be
in addition to any other tax or fee imposed pursuant to statute or local
ordinance or resolution by any governmental entity upon a prearranged ride;
provided, however, the surcharge shall not be subject to any other tax or fee
imposed on a prearranged ride.
���� b.� The surcharge imposed
pursuant to this section shall be collected and administered by the Director of
the Division of Taxation in the Department of the Treasury.� In carrying out
the provisions of this section, the director shall have all the powers granted
under the �Sales and Use Tax Act,� P.L.1966, c.30 (C.54:32B-1 et seq.).
���� c.� The surcharge imposed by
this section shall be governed by the provisions of the "State Uniform Tax
Procedure Law," R.S.54:48-1 et seq.
���� d.� Monies received from the
surcharge imposed pursuant to this section shall be deposited in the General
Fund.
���� e.� (1) The terms used in this
section shall mean the same as those terms are defined pursuant to section 2 of
P.L.2017, c.26 (C.39:5H-2).
���� (2)� �Meadowlands district�
means the same as that term is defined in section 84 of P.L.2015, c.19
(C.5:10A-84).
���� 4.� a.� For taxable year 2026,
a resident taxpayer shall be allowed a credit against the tax imposed pursuant
to the �New Jersey Gross Income Tax Act,� N.J.S.54A:1-1 et seq., in the amount
of any surcharge actually paid by the resident taxpayer as a customer pursuant
to sections 1 through 3 of P.L.��� , c.�� (pending before the Legislature as
this bill) during the taxable year.
���� b. �The order of priority of
the application of the credit allowed pursuant to this section, and any other
credits allowed against the tax imposed pursuant to N.J.S.54A:1-1 et seq. for a
taxable year, shall be as prescribed by the director. The amount of the credit
applied against the New Jersey gross income tax imposed pursuant to
N.J.S.54A:1-1 et seq. shall not reduce a resident taxpayer�s tax liability to
an amount less than zero.
���� c.� �The tax credit allowed
pursuant to this section shall be allowed to a customer who is subject to the
surcharges imposed pursuant to sections 1 through 3 of P.L.��� , c.�� (pending
before the Legislature as this bill).� ��A person or entity that collects a
surcharge imposed pursuant to sections 1 through 3 of P.L.��� , c.�� (pending
before the Legislature as this bill) from the customer for payment to the
Director of the Division of Taxation shall not be allowed a tax credit under
this section.
���� 5.� a.� (1)� In addition to
any other tax, assessment, or use fee authorized by law, there is hereby
imposed a surcharge on sums received by a casino or a joint sports wagering
operation from online sports wagering on 2026 FIFA World Cup Tournament events,
less only the total of all sums actually paid out as winnings to patrons, in
the amount of 10 percent, which shall be paid to the Casino Revenue Fund.
���� (2) In addition to any other
tax, assessment, or use fee authorized by law, there is hereby imposed a
surcharge on sums received by a horse racing permit holder, either jointly
established with a casino or established independently or with non-casino
partners from online sports wagering on 2026 FIFA World Cup Tournament events,
less only the total of all sums actually paid out as winnings to patrons, in
the amount of 10 percent, which shall be paid to the General Fund.
���� b. �The surcharge imposed
under this section shall be paid by the casino, joint sports wagering
operation, or horse racing permit holder on or before August 10, 2026. �The
surcharge imposed under this section shall be in addition to any other tax or
fee imposed pursuant to statute or local ordinance or resolution by any
governmental entity on online sports wagering; provided, however, the surcharge
shall not be subject to any other tax or fee imposed on online sports wagering.
���� c. �The surcharge imposed
pursuant to this section shall be administered by the Director of the Division
of Gaming Enforcement in the Department of Law and Public Safety.� In carrying
out the provisions of this section, the director shall have all the powers
granted under the "Casino Control Act," P.L.1977, c.110 (C.5:12-1 et
seq.), and P.L.2018, c.33 (C.5:12A-10 et al.).
���� d. �(1)� The terms used in
this section mean the same as those terms are defined pursuant to� P.L.2018,
c.33 (C.5:12A-10 et al.).
���� (2)� �2026 FIFA World Cup
Tournament event� means a match or series of matches, or any portion thereof,
among the 48 teams qualifying for participation in the 2026 FIFA World Cup
Tournament, including, but not limited to, the individual performance
statistics of athletes in a match or combination of matches.
���� 6. �This act shall take effect
immediately.
STATEMENT
���� This bill imposes four
temporary surcharges on certain transactions occurring in this State from June
12, 2026 through July 20, 2026, during which period 2026 FIFA World Cup
Tournament events will be held in this State.
���� The bill imposes three
temporary surcharges on certain transactions occurring in certain parts of the
State, as follows:
���� (1)� a hotel and motel
occupancy surcharge of 2.5 percent of the rent for every occupancy of rooms in
a hotel or transient accommodation, excluding those located in a county of the
fifth class, namely Atlantic, Monmouth, and Ocean Counties, or a county of the
sixth class, namely Cape May County;
���� (2)� a sales tax surcharge
within the Meadowlands district of three percent on consumer purchases of
tangible personal property, of prepared food, soft drinks, and alcoholic
beverages, and on admission charges to a place of amusement;
���� (3)� a surcharge of $0.50 to
be paid by a transportation network company rider on prearranged rides to and
from the Meadowlands district and another point within the State.
���� These temporary surcharges are
to be in addition to any other tax, assessment, or use fee imposed on related
transactions by law.� The monies received from these three surcharges are
required to be deposited in the State General Fund.
���� Under the bill, an individual
taxpayer may claim a gross income tax credit for taxable year 2026 in an amount
equal to any of the three surcharges that are actually paid by the individual.�
However, this tax credit may only be claimed by individuals who are customers
subject to the surcharge, not businesses that are required to collect the
surcharge from customers.
���� Additionally, the bill imposes
a temporary surcharge in an amount equal to 10 percent of the sums received
from online sports wagering on 2026 FIFA World Cup Tournament events, net of
patron winnings, by an Atlantic City casino, a joint sports wagering operation,
or a horse racing permit holder, either jointly established with a casino or
established independently with non-casino partners. ��The monies generated from
the surcharge imposed on casinos and joint sports wagering operations are
required to be paid to the Casino Revenue Fund and the monies generated from
the surcharge imposed on horse racing permit holders are required to be paid to
the State General Fund.� This surcharge is required to be administered by the
Director of the Division of Gaming Enforcement and apply to any match or series
of matches, or any portion thereof, among the 48 teams qualifying for the 2026
FIFA World Cup tournament, including but not limited to, the individual
performance statistics of athletes in a match or combination of matches.
���� The revenue collected from the
temporary surcharges is intended to support the costs of preparations for the
hosting of the matches of this special event that will take place in New
Jersey.� MetLife Stadium in East Rutherford, New Jersey, will host eight
matches, including the tournament final on July 19, 2026.