New Jersey § 32:32-8

§ 32:32-8.

a. Commencing with the state fiscal year commencing in calendar year 1987, and each

fiscal year thereafter, as part of the state's budget process for the fiscal year,

an appropriation shall be made by each state to the fund for the purpose of carrying

out the purposes for which the fund was created. b. (1) The annual appropriation by each state shall be an amount at least equal to

the amount set forth in the annual certificate of each state's tax administrator. (2) On or before the first day of the month preceding the month during which the state's

fiscal year commences, the tax administrator shall deliver to his respective governor,

the leaders of both houses of the Legislature and the chairperson of the fund an annual

certificate setting forth the sum of: (a) his estimate determined in accordance with

this section, of the net amount of tax revenues collected by his respective state

and its localities during the preceding calendar year from the state and local taxes

enumerated in subsection c. of this section which are attributable directly to Ellis

and Liberty Islands, which estimate shall be made on a net basis taking into account

the costs of administering and collecting the state and local taxes attributable to

the islands; and (b) all tolls and fees described in subsection c. of this section

which are collected by his respective state and its localities and one-half the amount

of the tolls and fees collected by joint agencies of the two states during that calendar

year. (3) The sum set forth in the annual certificate of the tax administrator shall fix

the amount of the required annual appropriation by the respective state to the fund. In making the estimate of the net collection during the calendar year of the state

and local taxes attributable to Ellis and Liberty Islands, the tax administrators

of the States of New York and New Jersey shall employ the uniform procedures and methods

that shall be adopted jointly by them for that purpose. (4) The tax administrator of either state shall not be liable for any overestimation

or underestimation of tax revenues or any overstatement or understatement of tolls

or fees contained in any certification made pursuant to this act, and any material

overestimation or underestimation or any overstatement or understatement, as the case

may be, shall be taken into account subsequently by way of subtracting the amount

of any such overestimation or overstatement from or adding the amount of any such

underestimation or understatement to certifications for subsequent calendar years. c. (1) The collections of the following state and local taxes, presently or hereafter

imposed, shall be taken into account for the purpose of the annual appropriation to

be made by the states to the fund: (a) franchise taxes or business privilege or like

taxes on the doing of business, (b) taxes imposed on the earnings or income of business

entities (including corporations) or persons, and (c) sales and compensating use taxes. (2) The tolls and fees which shall be taken into account for the purpose of the appropriation

are those tolls and fees now or hereafter collected by either state and its localities,

and each state shall also take into account one-half of the amount collected by joint

agencies thereof, for the use of bridges, roads or other land connections providing

access to or from Ellis and Liberty Islands. (3) The following rules shall apply for the purpose of determining the amount, if

any, of the tax revenues collected from the state and local taxes described in paragraph

(1) of this subsection which are attributable directly to Ellis or Liberty Islands: (a) If a state or locality, as part of its general state or local tax system, imposes

such taxes on the islands, revenue attribution to Ellis or Liberty Islands of the

receipts from any such taxes collected by the state or its localities shall be made

by applying the same factors, method or concept with respect to allocation or attribution

which is used by that state or the locality thereof imposing such tax for the purposes

of determining allocation to that state or, if a local tax, to that locality; provided,

however, such factors, method or concept shall be modified where appropriate to account

for the fact that the allocation or attribution hereunder is not to the state or locality

but to an area therein. In the case of revenues from sales and compensating use taxes, if the tax results

from an event occurring on the islands, the state and local tax revenue derived therefrom

shall be allocable to the islands; and (b) In addition to the foregoing attribution of state and local taxes by the method

set forth in subparagraph (a) above, the revenues collected from the following taxes,

to the extent presently or hereafter imposed by the states and their localities, and

to the extent not included in subparagraph (a) above, shall, for the purpose of this

section, be deemed to be attributable directly to the islands; (i) State and local sales and compensating use taxes imposed with respect to 1, the

provision of water, sewerage, gas, electricity, telephone or like utilities or utility

services when the utilities or utility services are used or consumed on Ellis or Liberty

Islands, irrespective of the fact that the delivery of the utilities or utility services

occurs off the islands, 2, the building of or the provision of access to or from Ellis

or Liberty Islands, 3, the provision of sightseeing tours to, of or around Ellis or

Liberty Islands, or both, or transportation to or from the islands, irrespective of

the fact that the tour or transportation was purchased off the islands, 4, sales of

food and beverages and other tangible personal property by providers of sightseeing

tours to their patrons or by the providers of transportation to their passengers,

5, fuel and all other tangible personal property purchased by providers of tours or

transportation and used directly in connection with the provision of tours or transportation. Where a sightseeing tour or transportation includes other sites or destinations,

such taxes shall be apportioned. (ii) State and local sales tax imposed by either state or its localities with respect

to the purchase of tangible personal property, services or other items which are used

or consumed on Ellis or Liberty Island by persons residing thereon or in connection

with a trade or business conducted thereon if with respect to the use or consumption

there is due and owing state or local compensating use tax. (iii) State and local franchise taxes or business privilege or like taxes on the doing

of business or taxes imposed on the earnings or income of business entities (including

corporations), in the case of business activities conducted in either state which

consists of 1, providing water, sewerage, gas, electricity, telephone or like utilities

or utility services where the utilities or utility services are used or consumed on

Ellis or Liberty Islands, 2, the building of or the provision of access to or from

Liberty or Ellis Island or 3, conducting tours to, of or around Ellis or Liberty Islands,

or both, or providing transportation to or from the islands. The portion of the state and local taxes derived from these business activities

shall be attributable directly to Ellis and Liberty Islands. (iv) 1, personal income taxes imposed by the states and their localities with respect

to income, wages or earnings of resident individuals other than those residing on

Ellis or Liberty Islands, derived from sources, including employment or self-employment

within or on Ellis or Liberty Islands, or with respect to the building of or the provision

of access to or from the islands, the conducting of tours to, of or around Ellis or

Liberty Islands, or both, or the provision of transportation to or from the islands; 2, income or earnings taxes imposed by the states and localities thereof on nonresident

individuals with respect to income, wages or earnings derived from sources, including

employment or self-employment, within or on Ellis or Liberty Islands or with respect

to the building of or the provision of access to or from the islands or the conducting

of tours to, of or around Ellis or Liberty Islands, or both, or the provision of transportation

to or from the islands; and 3, nonresident income and earnings taxes imposed by either state or its localities

with respect to individuals residing on Ellis or Liberty Islands.