News Flash

Home

Posted on: September 13, 2019

Lame Duck Preview: Supporting Telecommunications Legislation

The League fully supports A-5450/S-3827, which will clarify telecommunications industry corporate tax responsibilities, and shield local taxpayers from the costs of endless tax court litigation. We thank the sponsors for their attention to this problem.

What you can do?   

Please pass the League’s model resolution urging support for this important initiative and provide copies to your State Legislators.

Background

A-5450 was approved by the Assembly Appropriations Committee in June. It is now at Second Reading in the Assembly. S-3827 awaits consideration in the Senate Community and Urban Affairs Committee.

The dispute began in 2008 when Verizon informed a handful of municipalities that it had decided to exempt itself from payment of taxes on all of the cables and electronic equipment it houses in local switching stations. Based on a misreading of a 1997 law, Verizon claimed that it could exempt itself from the payment of business personal property taxes (BPPT), in any year and in any municipality, when and where it, unilaterally and without documentation, determined that it provided less than 51% of dial tone service.

In the years that followed, similar decisions by Verizon have led to cases affecting taxpayers in hundreds of other New Jersey municipalities. And in the years to come, even more municipalities will undoubtedly be denied this funding.

Earlier this year, Hopewell Borough in Mercer County prevailed over Verizon in a Tax Court case involving the corporation’s claimed exemption for 2008. It took one municipality ten years to ensure that Verizon would pay its 2008 taxes. Further litigation will be needed for Hopewell to secure BPPT payments for each subsequent year in which the exemption was claimed. Every other municipality faces the same prospect of costly annual tax court filings, which, as we have seen, can drag on for over a decade. But even that might not end the problem, as Verizon has appealed the final Tax Court decision, forcing Hopewell Borough to put even more time and treasure into the fight.

A-5450/S-3827 would put an end to the travail. It will clarify the Legislature’s intent to permanently apply the business personal property tax on local exchange telephone companies that were subject to the tax as of April 1, 1997. 

Contact: Jon Moran, Senior Legislative Analyst, jmoran@njlm.org, 609-695-3481 x121. 


Facebook Twitter Email

Other News in Home

Week of May 25: COVID-19 Update

Posted on: May 29, 2020

Week of May 18: COVID-19 Update

Posted on: May 22, 2020

State Budget Update

Posted on: May 22, 2020

Call for Federal Lifeline

Posted on: May 22, 2020

DEP Launches "Mask Up!" Campaign

Posted on: May 20, 2020

Week of May 11 COVID-19 Update

Posted on: May 15, 2020

HEROES Act Includes Hometown Help

Posted on: May 15, 2020

Week of May 4 COVID-19 Update

Posted on: May 8, 2020

Week of April 27 COVID-19 Roundup

Posted on: May 1, 2020

Gov. Murphy OK's May 2 Park Reopening

Posted on: April 30, 2020

Possible Help for Seasonal Businesses

Posted on: April 30, 2020

New Federal Help for Local Businesses

Posted on: April 29, 2020

Week of April 20 COVID-19 Update

Posted on: April 24, 2020

Week of April 12 COVID-19 Update

Posted on: April 17, 2020

ABC Extends Retail License Terms

Posted on: April 17, 2020

Congress Considers Local Aid Bills

Posted on: April 17, 2020

Primary Election Day Moved to July 7

Posted on: April 9, 2020

COVID-19 Rundown: Week of March 30

Posted on: April 3, 2020

April 1 Is Census Day

Posted on: April 1, 2020

CARES Bill Follow-up

Posted on: March 30, 2020

COVID-19 Update Week of March 22

Posted on: March 27, 2020

Federal CARES Act Analysis Continues

Posted on: March 27, 2020

CARES Act Preliminary Snapshot

Posted on: March 26, 2020

COVID-19: Free Informational Webinar

Posted on: March 24, 2020

State Freezes Spending

Posted on: March 25, 2020

March 23, 2020 Daily COVID-19 Update

Posted on: March 23, 2020

Governor Signs EO on Elections

Posted on: March 19, 2020

COVID-19 Bill Package

Posted on: March 15, 2020

Emergency Procurement Guidance

Posted on: March 15, 2020

March 13, 2020 COVID-19 Update

Posted on: March 13, 2020

State & Local COVID-19 Briefing

Posted on: March 10, 2020

Coronavirus Task Force Established

Posted on: February 11, 2020

Plastic Bag Ban Bill Advances

Posted on: January 31, 2020

Governor Delivers State of the State

Posted on: January 21, 2020

Lame Duck Roundup Week of January 13

Posted on: January 21, 2020

Treasury Funding Release Reported

Posted on: January 21, 2020

Gov. Approves Lead Service Line Bill

Posted on: January 10, 2020

Governor Signs Legislation

Posted on: January 10, 2020

DLGSA Extends CY 2020 Budget Deadlines

Posted on: January 3, 2020

Addressing a Toxic Culture

Posted on: January 3, 2020

Expungement Revisions Up for Final Vote

Posted on: December 13, 2019

FEMA to Delay New Flood Insurance Rates

Posted on: November 8, 2019

PFRS Personnel Hire & Search

Posted on: October 11, 2019

Gov. Murphy Issues Executive Order 83

Posted on: September 13, 2019

Recap of September PFRS Board Meeting

Posted on: September 13, 2019

2020 Rate Drop Recommended for SHBP

Posted on: September 9, 2019

Looking Forward: NJ Legislature

Posted on: September 9, 2019

Governor Freezes Most Transition Aid

Posted on: July 10, 2019

Recap of the July PFRS Board Meeting

Posted on: July 15, 2019

Spotted Lanternfly Information

Posted on: July 15, 2019

Cannabis Update

Posted on: June 7, 2019

Senate Acts on Medical Marijuana

Posted on: June 3, 2019