This bill proposes to allocate excess revenues generated from the taxation of energy and utility services under the Sales and Use Tax Act to the Universal Service Fund, which supports utility assistance programs. 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 is used to finance various assistance programs, including the Payment Assistance for Gas and Electric Program, which helps low-income residents manage their utility 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 address the anticipated increase in energy rates and the corresponding rise in sales and use tax collections, ensuring that any excess funds are directed towards supporting utility assistance for those in need. The act will take effect immediately and apply to State fiscal years beginning on or after July 1, 2025.

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