N.J. Admin. Code § 18:22-10.1

Current through Register Vol. 56, No. 21, November 4, 2024

Section 18:22-10.1 - Computation of tax

(a) In addition to the excise taxes payable under N.J.A.C. 18:22-9.2, every sewerage and water corporation must pay excise taxes for the privilege of exercising its franchises and for the use of the public streets, highways, roads, or other public places at the following rates:

1. Tax rate on proportion of lines or mains adjacent to public highways:

i. A tax computed at the rate of five percent on the proportion of the gross receipts of the taxpayer for the pre-tax year as the length of the lines or mains in this State, located along, in, or over any public street, highway, road, or other public place, exclusive of service connections, bears to the whole length of its lines or mains exclusive of service connections;

ii. Where the gross receipts of any taxpayer for the calendar year do not exceed $ 50,000, the tax due from that taxpayer for the calendar year is computed at the rate of two percent.

2. A tax at the rate of 7 1/2 percent upon the gross receipts of the taxpayer for the pre-tax year from its business over, on, in, through, or from its lines or mains in the State of New Jersey.

(b) Advance payment in tax year considered as a partial payment of the tax due and payable in the following year:

1. An advance payment equal in amount to 55 percent of the increase in taxes due under (a) above during the pre-tax year over the taxes due under (a) above in the year immediately prior to the pre-tax year, shall be paid each year by each subject taxpayer in the manner set forth in N.J.A.C. 18:22-12.1. The advance payment shall not be considered for the purpose of determining the amount of the increase.

i. This payment shall be in addition to the tax payable under (a) above and shall be considered as a partial payment of the tax to become due and payable in the following year;

ii. In the calculation of the tax due under (a) above in each year, every subject taxpayer shall be entitled to a credit in the amount of the tax paid under this subsection as a partial payment in the pre-tax year and shall be entitled to the return of any amount so paid that exceeds the total amount payable in accordance with N.J.S.A. 54:30A-54 and the Act.

N.J. Admin. Code § 18:22-10.1

Amended by 49 N.J.R. 1103(a), effective 5/1/2017