New Jersey A 5227: Provides gross income tax credits for certain employers for certain costs arising from increase in minimum wage.

Bill Text

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 apportione