This bill proposes to allocate excess revenues generated from the taxation of energy and utility services under the Sales and Use Tax Act to support utility assistance programs through the Universal Service Fund. Specifically, if the total revenues collected in any State fiscal year exceed the amounts collected in State Fiscal Year 2025, the State will appropriate the excess to the Board of Public Utilities (BPU) for deposit into the Universal Service Fund. This fund supports various utility assistance programs, including the Payment Assistance for Gas and Electric Program, which helps low-income residents manage their energy costs.

Additionally, the bill amends existing law regarding the distribution of energy tax receipts. It specifies that revenues from the taxation of energy or utility services will be deposited into the Energy Tax Receipts Property Tax Relief Fund, except for amounts dedicated to the Universal Service Fund as outlined in this bill. The bill aims to ensure that as energy and utility service revenues increase, a portion of those funds will be redirected to assist residents facing rising utility costs, particularly in light of anticipated increases in electricity rates. The act is set to take effect immediately and will apply to State fiscal years beginning on or after July 1, 2025.

Statutes affected:
Introduced: 52:27D-439, 52:27D-440