New Jersey § 52:9h-38

§ 52:9h-38.

a. There is hereby created within the General Fund a restricted reserve fund to be

known as the “Corporation Business Tax Excess Revenue Fund.” The State Treasurer shall credit to the “Corporation Business Tax Excess Revenue Fund,”

on or before December 31 annually in 2003, 2004 and 2005, the amounts, if any, by

which the State revenues derived from the corporation business tax in the prior fiscal

year exceeded the target amount for that fiscal year; provided however, that if the

total General Fund revenue for State Fiscal Year 2003 is less than the amount certified

for that year, then the amount credited to the fund shall be reduced by that difference. Moneys credited to the “Corporation Business Tax Excess Revenue Fund” may be invested

in the same manner as assets of the General Fund and any investment earnings on the

“Corporation Business Tax Excess Revenue Fund” shall accrue to the “Corporation Business

Tax Excess Revenue Fund.” For the purposes of section 3 of P.L.1990, c. 44 ( C.52:9H-16 ), amounts credited to the “Corporation Business Tax Excess Revenue Fund” shall not

be included in the determination of funds deposited in the General Fund. b. Balances in the “Corporation Business Tax Excess Revenue Fund” may be appropriated

by the Legislature during State fiscal year 2004 or 2005 in the event that the revenue

collections from the corporation business tax are less than the target amount for

that fiscal year. c. If balances remain in the Corporation Business Tax Excess Revenue Fund on December

30, 2005, the Director of the Division of Taxation shall adjust proportionately the

tax rates in section 5 of P.L.1945, c. 162 ( C.54:10A-5 ) as it applies to privilege periods commencing during calendar year 2006 so as to

reduce the expected revenue thereunder by an amount equal to the balance in the fund. d. As used in this section, “ target amount ” means $1,823,000,000 for State fiscal year 2003, and for each State fiscal year

thereafter means the target amount for the prior fiscal year multiplied by the weighted

average rate of growth of the rate of growth of the State revenue collections pursuant

to the “New Jersey Gross Income Tax Act,” N.J. S.54A:1-1 et seq. and the State revenue collections pursuant to the “Sales and Use Tax Act,” P.L.1966,

c. 30 ( C.54:32B-1 et seq. ), which weighted average rate of growth shall be measured by the amount of anticipated

revenue from those two sources certified by the Governor upon approval of the annual

appropriation act for the current fiscal year over both the amount of revenue from

the “Sales and Use Tax Act,” P.L.1966, c. 30 ( C.54:32B-1 et seq. ) actually deposited in the General Fund in the immediately-preceding fiscal year

and the amount of revenue from the “New Jersey Gross Income Tax Act,” N.J.S.54A:1-1 et seq. , actually deposited in the Property Tax Relief Fund in the immediately-preceding

fiscal year, as determined from the annual financial report of the State for the fiscal

year immediately preceding.