[Ord. 6 PSF-I, 5-5-2010 § 1]
This chapter shall be known and may be cited as "Motor Vehicle
Rental Tax."
[Ord. 6 PSF-I, 5-5-2010 § 1]
As used in this chapter:
Shall mean the New Jersey Economic Stimulus Act of 2009,
effective July 27, 2009.
Shall mean the City of Newark.
Shall mean the Director of the Division of Taxation in the
Department of the Treasury of the State of New Jersey.
Shall mean (1) the payment or reimbursement of costs of any
"redevelopment project" or other undertaking in furtherance of a "redevelopment
plan" in any "area in need of redevelopment" or "area in need of rehabilitation"
within the City (including, but not limited to, redevelopment projects
and undertakings located within the industrial zone), as such terms
are defined in the "Local Redevelopment and Housing Law," P.L. 1992.
c. 79 (C.40A:12A-1 et al.), (2) the making of municipal subsidies
or contributions as authorized by P.L. 1992, c. 79, (3) the payment
or reimbursement, within or relating to any urban enterprise zone
located within the City, of such costs as are enumerated in the definition
of "project" as contained in subsection c. of Section 29 of P.L. 1983,
c.303 (C.52:27H-88), without reference to the zone assistance fund
or the zone development corporation, (4) the payment of bonds issued
for any of the foregoing purposes, (5) planning, evaluation, negotiation,
and other preliminary expenses relating to any of the foregoing purposes,
and (6) costs of administration and enforcement, including costs and
expenses of the City incurred in collecting the motor vehicle rental
tax.
Shall mean the zone designated by Section 10:22A-4 of this chapter, as the same may be amended from time to time in accordance with the Act.
Shall mean any automobile, truck, van, bus, or similar conveyance
that is intended primarily for passenger (as distinct from cargo)
use, and meeting the requirements of the State for operation on public
roads.
Shall mean the tax imposed by Section 10:22A-3 of this chapter, as the same may be amended from time to time in accordance with the Act.
Shall mean the person, corporation or other legal entity
that engages in the rental of a motor vehicle to another person, corporation
or legal entity in exchange for the payment of a fee.
Shall mean any contract or agreement by which a person, corporation,
or other legal entity is permitted the use of a motor vehicle that
it does not own for a period of time that is less than one year in
exchange for the payment of a fee. A rental transaction is deemed
to occur at the location at which such person, corporation, or other
legal entity takes possession of the motor vehicle.
Shall mean the dedicated trust account established by the City pursuant to Section 10:22A-6 of this chapter.
Shall mean amounts collected pursuant to the motor vehicle
rental tax, including any investment income thereon.
[Ord. 6 PSF-I, 5-5-2010 § 1]
There is hereby imposed on the person, corporation or other
legal entity that is permitted the use of a motor vehicle that it
does not own for a period of time that is less than one year, in exchange
for the payment of a fee, a tax of 5% on the fee charged for the rental
of such motor vehicle, excluding any taxes and surcharges, in respect
of rental transactions that occur within the industrial zone. This
tax is in addition to any other taxes or surcharges.
[Ord. 6 PSF-I, 5-5-2010 § 1; New]
a.
The City hereby designates the following portion of the City as an
"industrial zone" for purposes of the motor vehicle rental tax authorized
by the Act and this chapter, such portion not exceeding, in the aggregate,
50% of the territory of the City: All of the territory within the
City which is, as of the effective date of this chapter, located within
the Light Industrial (I-1), Medium Industrial (I-2), Heavy Industrial
(I-3), Port (PORT), and the Airport & Airport Support (EWR &
EWR-S Zones, as such areas are established by Title XLI, Zoning and
Land Use Regulations, Chapter 3, Zoning Districts of the Newark Municipal
Code. The area so designated as an industrial zone under this paragraph
a shall not be altered by any subsequent revision of the City's
zoning districts, but rather shall be amended only by an ordinance
expressly amending this ordinance in accordance with the Act.
[Ord. 6 PSF-I, 5-5-2010 § 1]
The motor vehicle rental tax imposed by Section 10:22A-3 of this chapter shall be collected by the rental agency from the person, corporation or other legal entity that is permitted the use of a motor vehicle that it does not own. Every rental agency required to collect the motor vehicle rental tax imposed by this chapter shall be personally liable for the motor vehicle rental tax imposed, collected or required to be collected hereunder. Any person having the obligation to collect any motor vehicle rental taxes who fails, neglects or refuses to make any report required by this chapter or by the Director, any such person who refuses to permit an officer or agent designated by the City or by the Director, and any such person who knowingly makes any incomplete, false or fraudulent report, or who attempts to do anything whatsoever to avoid the full disclosure of the amount due under this chapter to avoid the payment of the whole or any part thereof, is a disorderly person. The failure of any person to receive or procure the forms required for making reports required by this chapter or by the Director shall not excuse him from making those reports.
[Ord. 6 PSF-I, 5-5-2010 § 1]
There is hereby established a dedicated trust account to be known as the "rental tax account." All tax proceeds received by the City, whether collected by the City pursuant to Section 10:22A-7 of this chapter or distributed to the City by the Director pursuant to Section 10:22A-8 of this chapter, shall be deposited into the rental tax account, except to the extent provided in Sections 10:22A-7 and 10:22A-8 of this chapter. In addition to the tax proceeds, there shall be deposited into the rental tax account such other moneys as may, from time to time, be appropriated for such purpose by the City or directed by law to be deposited therein, and the proceeds of any bonds issued pursuant to Section 10:22A-9 of this chapter may also be deposited therein. The rental tax account shall be dedicated exclusively to the purpose of funding one or more eligible purposes. Amounts in the rental tax account shall be anticipated as dedicated revenues and appropriated to such dedicated purposes in the municipal budget pursuant to N.J.S.A. 40A:4-39, and may be disbursed from the rental tax account for the payment of costs of eligible purposes by resolution of the Municipal Council.
[Ord. 6 PSF-I, 5-5-2010 § 1]
Except as provided in Section 10:22A-8 of this chapter, the Director of Finance of the City is hereby designated as the collector of the motor vehicle rental tax. All taxes imposed pursuant to this chapter shall be paid, in quarterly installments, to the Director of Finance, on forms prescribed by the Director of Finance, on or before the 15th day after the close of each calendar quarter, in accordance with the following schedule: (a) taxes collected, or required to be collected, by the rental agency during the first calendar quarter shall be paid to the Director of Finance by April 15; (b) taxes collected, or required to be collected, by the rental agency during the second calendar quarter shall be paid to the Director of Finance by July 15; (c) taxes collected, or required to be collected, by the rental agency during the third calendar quarter shall be paid to the Director of Finance by October 15; and (d) taxes collected, or required to be collected, by the rental agency during the fourth calendar quarter shall be paid to the Director of Finance by January 15. In addition to the payment of such taxes, the rental agency must also provide (i) the records used to calculate, verify and support the calculation of the motor vehicle rental taxes payable by such rental agency and (ii) copies of the relevant sales tax reports used to calculate, verify and support the calculation of the sales taxes payable by such rental agency (provided, that the City shall not be bound by any calculations or exemptions contained in such sales tax reports). The Director of Finance shall charge to the rental tax account an amount equal to its actual expenses in administering and enforcing the motor vehicle rental tax. The Director of Finance shall have the authority to require and receive any additional documents in order to verify the calculation of the taxes payable by such rental agency. The Director of Finance shall promulgate rules and regulations together with appropriate forms relating to the reporting and payment of the motor vehicle rental tax, including, but not limited to, regulations which require the following books, reports, and records:
a.
A separate journal itemizing the daily receipts collected shall be
maintained as a permanent record by each rental agency within the
industrial zone. In the event that a single rental agency has multiple
locations, a separate record shall be maintained for each location.
b.
The rental agency whose motor vehicle rental tax in the aggregate
for a year exceeds $10,000 shall submit to the City an annual certified
audit of the financial performance of the motor vehicle rental operations.
The certified audit for each year shall be submitted within 90 days
after the end of a calendar year.
The Director of Finance may enforce payment of the motor vehicle
rental tax in any manner provided by law, including specifically by
civil action as provided in N.J.S.A. 40:48C-35 and by filing of a
certificate of indebtedness as provided in N.J.S.A. 40:48C-36.
[Ord. 6 PSF-I, 5-5-2010 § 1]
To the extent required by regulation adopted pursuant to Section 20(c) of the Act, the Director shall be responsible for the collection of the motor vehicle rental tax, in which event the provisions of Section 28 of the Act shall be applicable thereto. Tax proceeds that are collected by the Director and distributed back to the City shall be deposited into the rental tax account, except to the extent provided in Section 10:22A-9 of this chapter.
[Ord. 6 PSF-I, 5-5-2010 § 1]
The City may assign all or any portion or percentage of the
tax proceeds received by the City directly to the trustee for any
bonds which may, from time to time, be issued by the City pursuant
to Section 24 of the Act. Tax proceeds assigned directly to any such
trustee shall be paid directly by the Director of Finance of the City
or the director, as the case may be, to such trustee, and accordingly
such assigned tax proceeds shall not be included in the general funds
of the City.
[Ord. 6 PSF-I, 5-5-2010 § 1]
If for any reason the tax is not paid on the date it is due,
interest at a rate of 12% per annum on the amount of the tax due and
an additional penalty of 1/2 of 1% of the amount of the unpaid tax
for each month or fraction thereof during which the tax remains unpaid
shall be added and collected. Where action is brought for the recovery
of any tax under this chapter, the person liable shall, in addition,
be liable for the cost of collection, attorneys fees and the interest
and penalties imposed.
[Ord. 6 PSF-I, 5-5-2010 § 1]
If any portion or clause of this chapter is declared invalid
for any reason whatsoever, same shall not affect the validity or constitutionality
of any other part or portion of this chapter.
[Ord. 6 PSF-I, 5-5-2010 § 1]
In accordance with the Act, the tax imposed by this chapter
shall take effect on the first day of the month immediately following
the date on which this chapter becomes legally in force and effect.
However, the motor vehicle rental tax shall not apply to rentals of
motor vehicles that commence prior to the effective date of the motor
vehicle rental tax.
