N.J. Admin. Code § 19:31O-1.13

Current through Register Vol. 56, No. 12, June 17, 2024

Section 19:31O-1.13 - Remedies

(a) Upon the occurrence of an event of recapture as described at N.J.A.C. 19:31O-1.12 and the project approval agreement, the Chief Executive Officer may demand the payment of the sales tax recapture amount, and in his or her sole discretion, may request that the Director of the Division of Taxation recover the sales tax recapture amount.

(b) Upon the occurrence of any event of default as described at N.J.A.C. 19:31O-1.12 and the project approval agreement, the Chief Executive Officer may, so long as such event of default is continuing, do one or more of the following as the Chief Executive Officer in his or her sole discretion shall determine, without limiting any other right or remedy the Chief Executive Officer or the Division of Taxation may have on account of such event of default:

1. The Chief Executive Officer may require the surrender by the business to the Chief Executive Officer of the sales tax certificate for suspension or cancellation; and/or

2. The Chief Executive Officer may exercise any other right or remedy that may be available under applicable law or under the project approval agreement, including, without limitation:

i. Requesting the Division of Taxation recover the sales tax repayment amount and any additional repayment amount pursuant to the State Uniform Tax Procedure Law, 54:48-1 et seq.;

ii. Recovering damages for loss of a bargain for any default during the commitment duration which damages the parties agree that the Chief Executive Officer's actual damages would be difficult to predict, and that the sales tax repayment amount and any additional repayment amount represents a reasonable approximation of such amount;

iii. Terminating the project approval agreement; or

iv. Proceeding by appropriate court action (legal or equitable) to enforce the terms of the project approval agreement.

(c) In the event of default or recapture, statutory interest shall be calculated from the date of default or recapture through the date of payment for all purchases made by the business or project participant pursuant to the exemption certificate issued under the Act.

(d) The rights and remedies of the Chief Executive Officer under this subchapter and the project approval agreement shall be cumulative and shall not exclude any other rights and remedies of the Chief Executive Officer or the Division of Taxation allowed by law with respect to any event of default under this subchapter or the project approval agreement.

N.J. Admin. Code § 19:31O-1.13

Amended by R.2008 d.38, effective 2/19/2008.
See: 39 N.J.R. 3278(a), 40 N.J.R. 885(a).
Added new (a); recodified former (a) through (c) as (b) through (d); and in (c), inserted "or recapture" twice.
Recodified from N.J.A.C. 12A:2A-2.12 and amended by R.2010 d.178, effective 8/16/2010.
See: 42 N.J.R. 904(a), 42 N.J.R. 1900(b).
In (a) and in the introductory paragraph of (b), updated the N.J.A.C. reference. Former N.J.A.C. 12A:2A-2.13, Appeals, recodified to N.J.A.C. 12A:2A-2.14.
Recodified from N.J.A.C. 12A:2A-2.13 and amended by R.2010 d.231, effective 10/18/2010.
See: 42 N.J.R. 1495(b), 42 N.J.R. 2436(a).
Substituted "Chief Executive Officer" for "Secretary" throughout; in (a) and the introductory paragraph of (b), updated the N.J.A.C. references; and in (b)2ii, substituted "Chief Executive Officer's" for "Secretary's".

Recodified from 19:31-16.13 56 N.J.R. 807(a), effective 5/6/2024