New Jersey A 793: Provides gross income tax deduction for certain E-ZPass tolls paid.

Bill Text

(Sponsorship Updated As Of: 1/29/2024)
ASSEMBLY, No. 793

STATE OF NEW JERSEY
221st LEGISLATURE

PRE-FILED FOR INTRODUCTION IN THE 2024 SESSION

Sponsored by:
Assemblyman GREGORY P. MCGUCKIN
District 10 (Monmouth and Ocean)
Assemblyman PAUL KANITRA
District 10 (Monmouth and Ocean)

SYNOPSIS
Provides gross income tax deduction for certain E-ZPass tolls paid.

CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.

A793 MCGUCKIN, KANITRA
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AN ACT providing a gross income tax deduction for certain tolls 1
paid, supplementing Title 54A of the New Jersey Statutes. 2
3
BE IT ENACTED by the Senate and General Assembly of the State 4
of New Jersey: 5
6
1. a. An individual, regardless of filing status, shall be 7
allowed to deduct from the individual’s gross income, if any, for the 8
taxable year, an amount equal to $1,000 for tolls paid via an 9
electronic toll collection system, for which the individual has an 10
account, for the operation of a motor vehicle by the individual or 11
any member of the individual’s household on any toll roadway in 12
this State or any interstate toll bridge or toll tunnel connecting New 13
Jersey with another state, including, but not limited to those 14
operated by the Delaware River Joint Tollbridge Commission, the 15
Burlington County Bridge Commission, the Delaware River and 16
Bay Authority, the Delaware River Port Authority, or the Port 17
Authority of New York and New Jersey during the taxable year, if, 18
in the aggregate, such tolls paid by the individual exceed $1,000 for 19
the taxable year. 20
b. In determining the aggregate tolls paid by the individual for 21
a taxable year, such aggregate tolls paid shall not include amounts: 22
(1) paid as a fine, penalty, or other payment made for a violation 23
of a toll; 24
(2) paid as an administrative fee, processing fee, or other 25
payment for the purpose of establishing an electronic toll collection 26
system account, acquiring electronic toll collection system 27
equipment, or other administrative purpose; 28
(3) reimbursed to the individual by or for the individual’s 29
employer; 30
(4) deductible by the individual from federal adjusted gross 31
income as an unreimbursed employee expense pursuant to section 32
162 of the federal Internal Revenue Code (26 U.S.C. s.162) but 33
without regard to any limits or floor determined pursuant to section 34
67 of the federal Internal Revenue Code (26 U.S.C. s.67), even if 35
not so deducted; 36
(5) deductible in determining net profits from business pursuant 37
to subsection b. of N.J.S.54A:5-1, even if not so deducted; 38
(6) deductible in determining distributive share of partnership 39
income pursuant to subsection k. of N.J.S.54A:5-1, even if not so 40
deducted; and 41
(7) deductible in determining net pro rata share of S corporation 42
income pursuant to subsection p. of N.J.S.54A:5-1, even if not so 43
deducted. 44
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2. This act shall take effect immediately and apply to taxable 46
years beginning on or after January 1, 2017. 47

A793 MCGUCKIN, KANITRA
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STATEMENT 1
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This bill provides a deduction from New Jersey gross income for 3
certain tolls paid on State toll roads via the E-ZPass system. The 4
deduction, in the amount of $1,000 per taxable year, is available to 5
an individual who has an E-ZPass account, for the operation of a 6
motor vehicle by the individual or any member of the individual’s 7
household on any toll roadway in this State, or any interstate toll 8
bridge or toll tunnel connecting New Jersey with another state, 9
including, but not limited to those operated by the Delaware River 10
Joint Tollbridge Commission, the Burlington County Bridge 11
Commission, the Delaware River and Bay Authority, the Delaware 12
River Port Authority, or the Port Authority of New York and New 13
Jersey, during the taxable year if, in the aggregate, such E-ZPass 14
tolls paid by the individual exceed $1,000 in the aggregate, for the 15
taxable year. The bill provides that amounts paid as fines, 16
penalties, administrative fees, or which are reimbursed, or 17
deductible as business expenses, or otherwise under certain 18
provisions of State or federal law, are not includible in determining 19
the aggregate amount of E-ZPass tolls paid in a taxable year. 20
This bill is intended to assist individuals in offsetting the 21
considerable expenses associated with commuting, which have been 22
aggravated by the recent increase in the State gasoline tax rate. By 23
providing toll-paying commuters with a way to offset a portion of 24
their costs, this bill recognizes that these individuals are paying 25
more than their fair share of the burden of maintaining safe, 26
modern, and ample roadways in the State. 27