Title
Dept/ Agency: Offices of Municipal Council/City Clerk
Action: ( ) Ratifying (X) Authorizing ( ) Amending
Type of Service: Declaring Intent
Purpose: Urging Passage of Assembly Bill 3723 and Declaring Intent to adopt an Ordinance to be proposed by the Mayor of the City of Newark, authorizing a reduction in Newark Payroll Tax Obligations for Employers with workforces more than 50% of which are Newark residents.
Additional Information:
Sponsor:
body
WHEREAS, in accordance with the New Jersey Employer Payroll Tax statute, N.J.S.A. 40:48C-14, et seq., the City of Newark previously adopted a “Newark Payroll Tax” ordinance codified at Section 10:21-1, et seq., of the Revised General Ordinances of Newark, New Jersey (a copy of which is attached hereto and made a part hereof); and
WHEREAS, there is legislation pending in the New Jersey State Legislature, Assembly Bill 3723, proposing an amendment to the New Jersey Employer Payroll Tax statute, in order to allow a Municipal Payroll Tax Ordinance to provide for differing rates of employer payroll tax, up to 1%; and
WHEREAS, in order to promote the hiring of Newark residents by employers located in Newark, the Mayor of the City of Newark recommends that the Newark Payroll Tax Ordinance be amended in order to provide that for employers who have workforces 50% or more of which are Newark residents, the Newark Payroll Tax shall not be imposed relative to those employees above the 50% threshold who are Newark residents; and
WHEREAS, the Mayor and the Municipal Council of the City of Newark believe that such an amendment of the Newark Payroll Tax would be beneficial to, and in the best interests of, the City of Newark and its residents; and
WHEREAS, upon the successful passage of Assembly Bill 3723, and any necessary approval by the Governor of the State of New Jersey, the Municipal Council of the City of Newark declares its intention to favorably consider the proposed Ordinance, attached hereto, subject to any amendments made by the State Legislature or the Governor of the State of New Jersey, when it is presented for consideration by the Mayor of the City of Newark.
NOW, THEREFORE, BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
1. Upon the successful passage of Assembly Bill 3723, proposing an amendment to the New Jersey Employer Payroll Tax statute, N.J.S.A. 40:48C-14, et seq., and any necessary approval by the Governor of the State of New Jersey, the Municipal Council of the City of Newark declares its intention to favorably consider the proposed Ordinance, attached hereto, subject to any amendments made by the State Legislature or the Governor of the State of New Jersey, when it is presented for consideration by the Mayor of the City of Newark.
2. A certified copy of this resolution shall be sent to the New Jersey State Senate and to the Essex County Delegation by the Office of the City Clerk.
STATEMENT
Urging Passage of Assembly Bill 3723 and declaring intent to adopt an Ordinance to be proposed by the Mayor of the City of Newark, authorizing a reduction in Newark Payroll Tax Obligations for Employers with workforces more than 50% of which are Newark residents.