HomeMy Public PortalAboutr 14-014Poolution of the Pozml�4 of &rtexet, �N_ �-
No. 14 -14 Date of Adoptio Ja luary 23 M4
RESOLUTION IN SUPPORT OF S- 2324/A -3393,
LEGISLATION TO PROTECT RESIDENTIAL PROPERTY TAXPAYERS
FROM THE LOSS OF TELECOMMUNICATIONS TAX SUPPORT
WHEREAS, in 1997, at the request of incumbent utilities, the laws regarding State
taxation of telecommunications corporations were amended in response to technological
and market innovations, in order to increase competition; and
WHEREAS, the amendments sought to preserve revenues to local governments by
providing that local exchange telephone companies subject to the New Jersey Franchise
and Gross Receipts Tax on April 1, 1997 would continue to be subject, annually, to the
Business Personal Property Tax ( "BPPT "); and
WHEREAS, the statute defines local exchange companies as those telecommunications
carriers "providing dial tone and access to 51 %of a local telephone exchange'; and
WHEREAS, Verizon's self - serving interpretation of the statutory definition has led it to
claim exemption from the BPPT in any municipality where the corporation unilaterally
determines, in any given year, that it no longer supplies dial tone and access to at least
51% of the local telephone exclmnees; and
WHEREAS, Hopewell Borough's challenge to that claim was upheld by the Mercer
County Board of Taxation in 2009; and i
WHEREAS, Verizon's appeal of that determination to the Tax Court resulted in a June,
2012 trial court decision accepting the corporation's self- serving interpretation of the
law; and
WHEREAS, as things now stand, over 100 municipalities know that they enter 2013
without BPPT revenues that will cost property taxpayers well in excess of $8 million and,
unless matters change, more municipalities will lose more millions in the fittme; and
WHEREAS, remedial legislation (A -3393) has been introduced by Assemblyman Ralph
Caputo, which will clarify the perceived ambiguity of the statutory definition to further
implement the original legislative intent to preserve revenues to local governments; and
WHEREAS, the introduction of companion legislation S -2324 by Senator Bob Smith
and Senator Linda Greenstein introduced November 19, 2013 in the Senate, also clarifies
application of business personal property tax on local exchange telephone companies that
were subject to tax as of April I, 1997;
NOW, THEREFORE, BE IT RESOLVED, THAT MAYOR AND COUNCIL OF
THE BOROUGH OF CARTERET commends Assemblyman Caputo and Senator
Smith and strongly supports 5- 2324 /A -3393, which would clearly identify the
telecommunications carriers subject to taxation on their business personal property and
remove the budget uncertainty caused by Verizon's obfuscation; and
BE IT FURTHER RESOLVED, that we urge our State Senator and our representatives
in the General Assembly to join as co- sponsors of 5- 2324/A -3393; and
NO. 14 -14
PAGE 2
BE IT FINALLY RESOLVED, that copies of this Resolution be forwarded to the
Honorable Governor Chris Christie, the Honorable Speaker of the General Assembly
Vincent Prieto, the Honorable President of the State Senate Stephen bt. Sweeney, the
Honorable Assembly Republican Leader Jon Bramnick, the Honorable Senate
Republican Leader Thomas H. Kean, Jr., and our own State Senator and Representatives
in the General Assembly, and to the New Jersey State League of Municipalities.
Adopted this 23rd day of Jm Lory, 2014
and ctrdfie3 as a trLle copy of tdle
original on Jatuaty 24, 2014.
LM A. RIVEM
Assistant Mxddpal Clerk
RECORD OF COUNCIL VOTE
COUNCILMAN
I YES
NO
NV
A.B.
COUNCILMAN
YES
NO
NV
A.B.
BELLIM
X
X
DIAZ
DINASM
X
X - Indicate Vote AB - Absent NV - Not Voting XOR - Indicates Vote to Overrule Veto
Adopted at a meeting of the Municipal Council
Ja[119 y 23 2014
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