5:12-148.1 - Tax on certain comps provided by casinos at no cost, reduced price
5:12-148.1 Tax on certain comps provided by casinos at no cost, reduced price.
3. a. There is imposed on each casino licensee, through June 30, 2009, a tax on the value of rooms, food, beverages, or entertainment provided at no cost or at a reduced price, as required to be reported to the Casino Control Commission pursuant to section 102 of P.L.1977, c.110 (C.5:12-102), which tax shall be computed as follows:
(1)if rooms, food, beverages or entertainment are provided at no cost, the tax shall be at a rate of 4.25% on the value of rooms, food, beverages and entertainment;
(2)if rooms, food, beverages or entertainment are provided at reduced cost, the tax shall be at a rate of 4.25% on the value, which taxable value shall be reduced by any consideration paid by the person to whom the rooms, food, beverages or entertainment are provided; provided however, that the imposition of the excise tax as provided in this section is in addition to any tax due under the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.), on the receipts from the sale of food and beverages, or from amounts paid as a charge for entertainment, or the rents for occupancy of hotel rooms, at reduced cost;
(3)no excise tax shall be imposed on the value of any service or property upon which a sales or use tax has been paid by a casino licensee;
(4)for the purpose of computing the tax, the value of a room complimentary shall be $67, provided that the commission shall review the room value within 90 days of the effective date of this act, and shall adjust the statutory room value to a rate that, along with the tax imposed pursuant to this section on food, beverages and entertainment, is sufficient to generate $26 million in State fiscal year 2004, and the commission's review and adjustment shall take into account tax paid under this section by a casino licensee commencing operations in calendar year 2003 in determining whether the adjusted statutory room value would generate $26 million in State fiscal year 2004;
(5)for the purpose of computing the tax, the value of food, beverages and entertainment complimentaries shall be determined pursuant to section 2 of P.L.1983, c.41 (C.5:12-14a), provided that the value of a beverage complimentary served in a casino room shall be the cost to the casino licensee of providing the beverage; and
(6)for each casino licensee, the amount of tax imposed by this section for State fiscal years 2004 through 2006 shall not be less than the tax that the licensee would have paid if the tax had been in effect for calendar year 2002.
(7)Notwithstanding any other provision of this section to the contrary, the rate and the amount to be raised annually by the tax imposed pursuant to this section shall be as follows: in State fiscal years 2004 through 2006, 4.25% and $26,000,000; in State fiscal year 2007, 3.1875% and $19,500,000; in State fiscal year 2008, 2.125% and $13,000,000; and in State fiscal year 2009, 1.0625% and $6,500,000.
b.Each casino licensee shall file a return, on a form as prescribed by the commission, and pay the amount of tax due pursuant to this section in the manner and at a frequency as the commission prescribes, but no more frequently than monthly. In prescribing the periods to be covered by the return or intervals or classifications for payment of tax liability, the commission may take into account the dollar volume of tax involved, as well as the need for ensuring the prompt and orderly collection of the tax imposed.
c.The commission shall administer the tax imposed pursuant to this section. The commission shall determine and certify to the State Treasurer on at least a quarterly basis the amount of tax to be collected by the State Treasurer pursuant to this section. The commission may promulgate such rules and regulations as the commission determines are necessary to effectuate the provisions of this act.
d.(Deleted by amendment, P.L.2004, c.128).
e.The tax imposed by this section, and any interest or penalties imposed by the commission relating to that tax, shall be deposited by the State Treasurer into the Casino Revenue Fund established pursuant to section 145 of P.L.1977, c.110 (C.5:12-145).
f.In a State fiscal year in which the amount of the tax collected is more or less than is required to be collected pursuant to paragraph (7) of subsection a. of this section, the amount of the shortfall or excess shall be credited or assessed, as appropriate, to each casino licensee in the same proportion as that casino licensee's tax payments pursuant to this section for that particular State fiscal year bear to the total tax payments received from all casino licensees pursuant to this section for that same State fiscal year.
L.2003,c.116,s.3; amended 2004, c.128, s.4.