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S 4196

Enacts a highway use tax on fuel-efficient vehicles; repealer

2025 Regular Session Introduced by Andrew Gounardes

Creates the NJ SHARES Fund funded by voluntary contributions on NJ gross income tax return to aid households with temporary energy-bill crises; annual appropriation to NJ SHARES.

REFERRED TO BUDGET AND REVENUE
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Bill Summary · S 4196

Summary of S 4196 (Introduced 2025)

Note: The bill’s title references enacting a highway use tax on fuel-efficient vehicles, but the introduced content provided here establishes a voluntary contribution mechanism for NJ SHARES. This summary reflects the introduced version’s text and provisions.

Overview

  • Bill Number: S 4196
  • Title (as introduced): Enacts a voluntary contribution mechanism through the New Jersey gross income tax return to support NJ SHARES, supplementing chapter 9 of Title 54A of the New Jersey Statutes.
  • Primary Sponsor: Sen. Andrew Gounardes
  • Status: Referred to Budget and Revenue (introduced March 3, 2025)
  • Related/Companion: A 3262 (companion); S 9375 (prior-session)

Purpose and Intent

  • Create a dedicated NJ SHARES Fund within the Department of the Treasury.
  • Allow taxpayers to voluntarily contribute a portion of their tax refunds or enclosed contributions to support NJ SHARES, a nonprofit that provides energy-bill assistance to households in temporary financial crisis.
  • Ensure annual appropriations from the Fund to NJ SHARES for crisis-related energy assistance.

Key Provisions

  • Establishment of the NJ SHARES Fund

    • A new special fund in the Department of the Treasury named the “NJ SHARES Fund.”

  • Voluntary contributions on the gross income tax return

    • Taxpayers may designate a portion of their tax refund or make an enclosed contribution to the NJ SHARES Fund.

  • Administration and deductions

    • The Division of Taxation may incur and deduct reasonable costs for collection/administration of this section, as determined by the Director of the Division of Budget and Accounting.
    • The State Treasurer will deposit net contributions to the NJ SHARES Fund.

  • Annual appropriation

    • The Legislature shall annually appropriate all monies deposited into the NJ SHARES Fund for distribution to New Jersey SHARES, Inc. (NJ SHARES).

  • Use of funds

    • Funds are intended to provide temporary energy bill assistance to New Jersey households in need due to short-term financial crises.

Funding, Administration, and Reporting

  • Source of funds: Voluntary contributions via the gross income tax return (refund designations) and enclosed contributions.
  • Administration: Costs incurred by the Division of Taxation for this program are deductible from receipts of the section; remaining net contributions go to the NJ SHARES Fund.
  • Allocation: Annual legislative appropriation to NJ SHARES from the Fund for energy assistance to qualifying households.

Eligibility and Beneficiaries

  • Beneficiaries: Households in New Jersey in need of temporary help to pay energy bills due to a short-term financial crisis.
  • Eligibility for NJ SHARES assistance: Individuals/families facing financial crisis and not eligible for welfare or other income-based energy programs; must have a history of good-faith utility payments.

Effective Date and Scope

  • Effective date: Immediate, applying to taxable years beginning on or after January 1 following enactment.

Procedural Timeline

  • 2025-02-03: Referred to Budget and Revenue
  • 2025-03-03: Introduced in the Senate and referred to Senate Health, Human Services and Senior Citizens Committee

Impact and Considerations

  • Taxpayers gain an optional way to support energy assistance for households in crisis.
  • The program creates a dedicated funding stream for NJ SHARES beyond voluntary private contributions.
  • Administrative costs are capped by deducting them from receipts, with the remainder deposited to the Fund.
  • The bill may have budgetary implications for NJ SHARES and for program administration in the Treasury, dependent on taxpayer participation.

Notable Discrepancies

  • The bill’s title mentions a highway use tax on fuel-efficient vehicles, but the introduced text focuses on voluntary contributions to NJ SHARES. This discrepancy should be clarified in any official analysis or subsequent amendments.

Compiled from official sources — confirm details with the bill’s official record.

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