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ORDINANCE AMENDING AND SUPPLEMENTING THE REVISED ORDINANCES OF THE CITY OF NEWARK, TITLE X TO ADD A NEW CHAPTER AUTHORIZING THE IMPOSITION OF A 1.375% SURCHARGE ON ADMISSION CHARGES AT CERTAIN MAJOR PLACES OF AMUSEMENT IN THE CITY OF NEWARK
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ORDINANCE AMENDING AND SUPPLEMENTING THE REVISED ORDINANCES OF THE CITY OF NEWARK, TITLE X TO ADD A NEW CHAPTER AUTHORIZING THE IMPOSITION OF A 1.375% SURCHARGE ON ADMISSION CHARGES AT CERTAIN MAJOR PLACES OF AMUSEMENT IN THE CITY OF NEWARK
WHEREAS, the revised statutes of the State of New Jersey P. L. 2007, Chapter 302, (N.J.S. 40:48G-1 et seq.), effective January 13, 2008, amended by P.L. 2013, Chapter 84, authorizes municipalities to impose a surcharge up to 5% on admission charges at certain major places of amusement through the adoption of an ordinance; and
WHEREAS, the City of Newark adopted such an ordinance and subsequently repealed it; and
WHEREAS, it is now deemed in the best interest of the City of Newark to re-adopt an ordinance in compliance with existing state law.
NOW THEREFORE, BE IT ORDAINED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, IN THE COUNTY OF ESSEX, as follows:
Section 1. The Revised Ordinances of the City of Newark are hereby amended and supplemented to add to Title X (FINANCE AND TAXATION) thereof a new chapter entitled ADMISSION TICKET SURCHARGE, to read as follows:
ADMISSION TICKET SURCHARGE
1. TITLE.
This chapter shall be known and may be cited as 1.375% Admission Ticket Surcharge.
2 DEFINITIONS:
The following definitions shall govern this ordinance:
Admission Charge means the amount paid for admission, including any service charge and any charge for entertainment at a place of amusement, including but not limited to a dramatic or musical arts admission charge as defined pursuant to subsection (r) of Section 2 of P.L. 1966, c.30 (C.54:32B-2).
Director means the Director of the Division of Taxation in the Department of the Treasury of the State of New Jersey
Major Place of Amusement means a place of amusement as that term is defined in subsection (t) of section 2 of P.L. 1966, c.30 (C.54:32B-2), other than a motion picture theatre, and other than an amusement park as defined in section 1 of P.L. 1992, c118 (C.5:3-55), at which admission charges are regularly paid, which place of amusement is not owned by the State or an independent State authority, or is not located on property that is owned by the State or an independent State authority, and which contains fixed seats or bleacher capacity for not less than 10,000 patrons.
3 IMPOSITION OF ADMISSION TICKET SURCHARGE.
(a) There is hereby imposed a surcharge in the amount of 1.375% of each Admission Charge that is subject to the New Jersey sales tax pursuant to paragraph (1) of subsection (e) of section 3 of P.L. 1966, c.30 (C.54:32B-3), and that is not otherwise exempt from that tax, collected by each Major Place Of Amusement in the City of Newark for admission thereto, which surcharge shall be paid by the customer or patron from whom the sales tax is due pursuant to section 3 of P.L. 1966, c.30 (C:54:32B-3). The surcharge imposed shall be in addition to any other tax or fee imposed by statute or local ordinance or resolution by any governmental entity upon the Admission Charge. The surcharge pursuant to this ordinance shall be separately stated on any bill, receipt, invoice or similar document provided to the customer or patron, but shall not be considered part of the sale price for purpose of determining tax pursuant to P.L. 1966, c.30 (C.54:32B-1 et seq.).
- A copy of this ordinance shall be transmitted by the City Clerk upon adoption or any amendment thereto to the State Treasurer along with a list of the names and locations of Major Places of Amusement in the City of Newark.
- The surcharge provisions of this ordinance or any amendment thereto, shall take effect on the first day of the first full month occurring 30 days after the date of transmittal to the State Treasurer.
- Conditions:
- A vendor shall not assume or absorb the surcharge imposed by the ordinance;
- A vendor shall not in any manner advertise or hold out to any person or to the public in general, in any manner, directly or indirectly, that the surcharges will be assumed or absorbed by the vendor, that the surcharge will not be separately charged and stated to the customer, or that the surcharge will be refunded to the customer or patron;
- Each assumption or absorption by a vendor of the surcharge shall be deemed a separate offense and each representation or advertisement by a vendor for each day the representation or advertisement continues shall be deemed a separate offense.
4 COLLECTION OF ADMISSION TICKET SURCHARGE.
The surcharge imposed pursuant to this ordinance under the provisions of this section shall be collected on behalf of the City of Newark by the person collecting the admission charge from the customer or patron as follows:
- Each person required to collect the surcharge shall be personally liable for the surcharge imposed, collected or required to be collected hereunder. Any such person shall have the same right in respect to collecting the surcharge from a customer or patron as if the surcharge were a part of the admission charge and payable at the same time; provided, however, that the Director of the Department of Finance of the City of Newark, shall be joined as a party in any action or proceeding brought to collect the surcharge.
- The person required to collect a surcharge imposed shall, on or before the dates required pursuant to section 17 of P.L. 1966, c.30 (C.54:32B-17), forward to the Director of the Division of Taxation in the Department of the Treasury hereinafter the Director) the surcharge collected in the preceding month and make and file a return for the preceding month with the Director on any form and containing any information as the Director shall prescribe as necessary to determine liability for the surcharge in the preceding month during which the person was required to collect the surcharge.
- The Director may permit or require returns to be made covering other periods and upon any dates as the Director may specify. In addition, the Director may require payments of surcharge liability at any intervals and based upon any classifications as the Director may designate. In prescribing any other periods to be covered by the return or intervals or classifications for payment of surcharge liability, the Director may take into account the dollar volume of surcharge involved as well as the need for ensuring the prompt and orderly collection of the surcharge imposed.
- The Director may require amended returns to be filed within 20 days after notice and to contain the information specified in the invoice.
- The Director of the Division of Taxation in the Department of Treasury shall collect and administer the surcharge; in so doing, the Director shall have all the powers granted pursuant to P.L. 1966.c.30 (C.54:32B-1 et seq.). The surcharge imposed pursuant to the provision of this section shall be governed by the provision of the State Uniform Tax Procedure Law, R.S.54:48-1 et seq.
- The Director shall determine and certify to the State Treasurer on a quarterly or more frequent basis, as prescribed by the State Treasurer, the amount of revenues collected in the City of Newark.
- The State Treasurer, upon the certification of the Director and upon the warrant of the State Comptroller, shall pay and distribute on a quarterly or more frequent basis as prescribed by the State Treasurer, to the City of Newark, the amount of revenues determined and certified.
5 PENALTIES
Any violation of the provision of this ordinance shall be subject to imprisonment for any term not exceeding ninety (90) days; or by a fine not exceeding $2,000.00; or by a period of community service not exceeding ninety (90) days. The minimum monetary penalty shall be no less than $100.00
6 TAX ADMINISTRATION BY THE CITY.
The revenue received by the City of Newark shall be appropriated as a special item of local revenue subject to the prior written approval by the Director of the Division of Local Government Services in the Department of Community Affairs, and shall be offset with a local unit appropriation of an equal amount for public safety purposes.
Section 2. All City ordinances or portions of ordinances inconsistent herewith are hereby repealed to the extent of their inconsistency only.
Section 3. Severability. If any part of this ordinance shall be declared to be invalid or inoperative, such part shall be deemed severable and the invalidity thereof shall not affect remaining parts of this Ordinance.
Section 4. Effectiveness. This ordinance shall take effect in accordance with law.
STATEMENT
Ordinance Amending And Supplementing The Revised Ordinances Of The City Of Newark, Title X To Add A New Chapter Authorizing The Imposition Of A Surcharge On Admission Charges At Certain Major Places Of Amusement In The City Of Newark