An Act concerning certain host community impact fees, supplementing Title 40 of the Revised Statutes, and amending R.S.40:52-1.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. (New section) The Legislature finds and declares:

a. Facilities handling and transferring high volumes of crude oil and its refined products on a daily basis present a panoply of special problems to municipal residents living in close proximity to those facilities.

b. The special problems resulting from facilities handling and transferring high volumes of crude oil and its refined products on a daily basis that affect the health of residents and that tend to depress residential property values include, but are not limited to, air pollution, noxious odors, groundwater pollution, dust and airborne particulates, equipment noise, homeland security issues, police and fire readiness, the regular movement of hazardous materials through neighborhoods, and limited economic development and housing opportunities.

c. The presence of a single facility handling and transferring high volumes of crude oil and its refined products on a daily basis within a municipality can cause serious problems, and the clustering of these facilities within a municipality or small region further magnifies those problematic effects and may depress the community by causing the phenomenon of "industrial poverty."

d. Although facilities that handle and transfer high volumes of crude oil and its refined products on a daily basis benefit the nation and the wider geographical region, they represent a burden on local communities that is often in excess of their benefit to those communities.

e. During the last 20 years, changes in the manner that industrial property is assessed have resulted in numerous property tax appeals and reduced assessed valuations for those properties. Residential and commercial property taxpayers in municipalities that host facilities that handle and transfer high volumes of crude oil and its refined products on a daily basis are especially vulnerable to large tax increases when the assessed valuation of industrial property is reduced because the "industrial poverty" caused, in part, by those facilities, has depressed other commercial and industrial growth in the taxing district, thereby limiting the property tax base.

f. It is therefore a public purpose to permit municipalities to impose an annual host community petroleum bulk processing impact fee, under certain circumstances, to raise revenues needed to address the special problems caused by facilities located in the municipality that handle and transfer high volumes of crude oil and its refined products on a daily basis.

2. (New section) a. (1) Commencing in any year in which a municipality either settles a property tax appeal or is ordered by the county board of taxation or the Tax Court to reduce the total assessed value of real and personal property assessable at the local level, resulting in a decrease of five percent or more of the total assessed value of real and personal property in the taxing district from the total assessed value of real and personal property at any time within the previous five years, the municipality may adopt an ordinance requiring every person or entity that engages in at least three of the following business activities within the municipality: the bulk transfer, terminaling, storage, refining, blending, or packaging of crude oil or its refined products, as defined in the ordinance, to pay, on or before January 31 of each year, commencing on January 31 next following adoption of the ordinance, an annual host community petroleum bulk processing impact fee. The ordinance shall provide that the amount due be a sum equal to the yearly quantity of crude oil, or its refined products, transferred, terminaled, stored, discharged, refined, blended, or packaged by the taxpayer during the year, ending on December 31 which is two years prior to the payment due date, multiplied by a rate as set forth in the ordinance. In the case of a refinery, the amount of crude oil or its refined product subject to the fee shall be measured by the amount of crude oil or other refined products delivered to the refinery. The storage of refined oil products on or off a construction site, on properties of operating common carrier railroads, or on properties of a commercial airport which provides for a minimum of 300 regularly scheduled commercial airplane flights per day, by a person or entity, shall not be deemed as engaging in the bulk processing of crude oil or its refined products. The storage and delivery of heating oil by a person or entity that is a wholesale or retail provider of home heating oil shall not be subject to a host community petroleum bulk processing impact fee authorized by this subsection for those activities.

(2) For the purposes of this section:

"Blending" shall not include a mixture that results in the creation of bio diesel or bio heating oil fuel which is a mixture of B100 biofuel which meets the ASTM D 6751 standard with petroleum based distillate which meets an ASTM D396 (heating oil) or ASTM D975 (diesel fuel) standards.

"Bulk" means a capacity to transfer, terminal, store, refine, blend, or package at least 30,000 gallons per day of crude oil, or its refined products.

"Terminaling" means both the storage and distribution of crude oil or petroleum products at a facility that includes marine access, railroad access, or both.

b. (1) An ordinance adopted pursuant to subsection a. of this section shall provide that on February 1 of each year, the person on whom a host community petroleum bulk processing impact fee is imposed shall furnish to the chief financial officer of the municipality in which the taxable activity took place, a full and true list or statement of all crude oil and its refined products transferred, terminaled, stored, refined, blended, or packaged, specifying the respective amounts and different kinds, for the year immediately preceding January 1 of the year in which the list or statement is to be made.

(2) Any person responsible for the bulk transfer, terminaling, storage, refining, blending, or packaging of crude oil or its refined products who fails or refuses to furnish the list or statement required by paragraph (1) of this subsection, or who knowingly makes or furnishes a false or incorrect list or statement, shall be subject to a fine of $10,000 per day that the information is delinquent, which shall be recovered in a summary proceeding pursuant to the "Penalty Enforcement Law of 1999," P.L.1999, c.274 (C.2A:58-10 et seq.). If a list or statement is delinquent for more than 60 days, then the municipal governing body may revoke or refuse to renew a license granted pursuant to subsection o. of R.S.40:52-1.

(3) Notwithstanding the reporting date in paragraph (1) of this subsection, with respect to the first payment due following adoption of the ordinance, the report upon which that payment is based shall be due on December 31 of the year in which the ordinance is adopted.

3. (New section) a. Except as provided in subsection e. of this section, for any calendar year, every person or entity subject to a host community petroleum bulk processing impact fee for engaging in the bulk transfer, terminaling, storage, refining, blending, or packaging of crude oil or its refined products, as defined in the ordinance, within the municipality, shall be required to pay the greater of the local property tax due on its real and personal property assessable at the local level (including the payment of ad valorem taxes, payment in lieu of taxes, payment of annual service charges, and payment of taxes on personal property reported on the PT-10 form) or the host community petroleum bulk processing impact fee, to be calculated as follows:

(1) If the quarterly installment of the local property tax is less than one-fourth of the host community petroleum bulk processing impact fee, the taxpayer shall be required to pay only the host community petroleum bulk processing impact fee.

(2) If the quarterly installment of the local property tax is greater than one-fourth of the host community petroleum bulk processing impact fee, the taxpayer shall be required to pay the host community petroleum bulk processing impact fee, and, in addition, the taxpayer shall be required to make a supplemental payment. For the purposes of this section, "supplemental payment" means an amount equal to the excess of the local property tax installment over one-fourth of the host community petroleum bulk processing impact fee.

b. At the end of the calendar year, the total payments of the host community petroleum bulk processing impact fee made during the year shall be adjusted as follows:

(1) If the total of the host community petroleum bulk processing impact fee, excluding any supplemental payments, made during the year exceeds the total local property tax for that year, the municipality shall refund to the taxpayer the total amount of the supplemental payments, if any, made during the year; or

(2) If the total of the host community petroleum bulk processing impact fee, excluding any supplemental payments, made during the year does not exceed the total local property tax for the year, and if the total of the host community petroleum bulk processing impact fee and supplemental payments made during the year does exceed the total local property tax for the year, the municipality shall refund to the owner the difference between: (a) the total local property tax paid and (b) the sum of the host community petroleum bulk processing impact fee paid plus the supplemental payments paid.

c. The refunds shall be paid to the taxpayer without interest by July 1 of the succeeding year or 15 days after the adoption of the annual budget by the municipal council, whichever is later.

d. No refund shall be made in any year in which the taxpayer has failed to be current in its host community petroleum bulk processing impact fee, including any supplemental payments required under this section. For the purposes of this section, "current" means that quarterly installments of tax have been paid in accordance with R.S.54:4-66.

e. A municipality imposing a host community petroleum bulk processing impact fee pursuant to the provisions of section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill), by ordinance, may require that any person or entity subject to the host community petroleum bulk processing impact fee to annually pay to the municipality both the local property tax due and owing on the facility, and the host community petroleum bulk processing impact fee authorized pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill).

4. R.S.40:52-1 is amended to read as follows:

40:52-1. The governing body may make, amend, repeal and enforce ordinances to license and regulate:

a. All vehicles used for the transportation of passengers, baggage, merchandise, and goods and chattels of every kind, and the owners and drivers of all such vehicles; and the places and premises in which or at which the different kinds of business or occupations mentioned herein are carried on and conducted. Nothing herein contained shall be construed as modifying or repealing any of the provisions of chapter 4 of Title 48 of the Revised Statutes (R.S.48:4-1 et seq.);

b. Autobuses, and the owners and drivers of all such vehicles, and to fix the fees for such licenses, which may be imposed for revenue, and to prohibit the operation of all such vehicles in the public streets or places of such municipality, unless such ordinances are complied with, whether such vehicles are operated over routes wholly or partly within the territorial limits of such municipality; the powers conferred by this section shall not be in substitution of but in addition to whatever other right, power and authority any such municipality may at any time have as to licensing, regulating, or control of the operation of such autobuses, commonly called jitneys, and this section shall not be construed as modifying or repealing any of the provisions of chapter 4 (R.S.48:4-1 et seq.) or article 3 of chapter 16 (R.S.48:16-23 et seq.) of Title 48 of the Revised Statutes;

c. Cartmen, expressmen, baggagemen, porters, common criers, hawkers, peddlers, employment agencies, pawnbrokers, junk shop-keepers, junk dealers, motor vehicle junk dealers, street sprinklers, bill posters, bill tackers, sweeps, scavengers, itinerant vendors of merchandise, medicines and remedies; and the places and premises in which or at which the different kinds of business or occupations mentioned herein are conducted and carried on;

d. Hotels, boardinghouses, lodging and rooming houses, trailer camps and camp sites, motels, furnished and unfurnished rented housing or living units and all other places and buildings used for sleeping and lodging purposes, and the occupancy thereof, restaurants and all other eating places, and the keepers thereof;

e. Automobile garages, dealers in second-hand motor vehicles and parts thereof, bathhouses, swimming pools, and the keepers thereof;

f. Theatres, cinema and show houses, opera houses, concert halls, dance halls, pool or billiard parlors, bowling alleys, exhibition grounds, and all other places of public amusement, circuses and traveling or other shows, plays, dances, exhibitions, concerts, theatrical performances, and all street parades in connection therewith;

g. Lumber and coal yards, stores for the sale of meats, groceries and provisions, dry goods and merchandise, and goods and chattels of every kind, and all other kinds of business conducted in the municipality other than herein mentioned, and the places and premises in or at which the business is conducted and carried on; street stands for the sale or distribution of newspapers, magazines, periodicals, books, and goods and merchandise or other articles;

h. Street signs and other objects projecting beyond the building line, into or over any public street or highway;

i. Auctioneers and their business, whether the auctioneers be real estate brokers engaged in selling at auction or real estate auctioneers licensed by the New Jersey Real Estate Commission; fix their fees, and license and regulate public auctions; make such regulations as the governing body of the municipality shall deem necessary, to protect the public against fraud at public auction sales, and for the safety and protection of the property of the municipality and its inhabitants, including the power to require from auctioneers a bond to the municipality, not exceeding the penal sum of $5,000.00, conditioned as the governing body shall require;

j. Sales of goods, wares and merchandise to be advertised, held out or represented, or which are advertised, held out or represented, to the public, by any means, directly or by implication, as forced sales at reduced prices or as insurance, bankruptcy, mortgage foreclosure, insolvency, removal, loss or expiration of lease or closing out sales, or as assignees', receivers' or trustees' sales or as sales of goods distrained or as sales of goods damaged by fire, smoke or water, except any sale which is to be held under a judicial order, judgment or decree or a writ issuing out of any court or to enforce any lawful lien or power of sale whether by judicial process or not or by a licensed auctioneer; to make such regulations governing the advertisement, holding out or representing to the public of such sales, and the conduct thereof, as the governing body of the municipality shall deem necessary to protect the public against fraud; to prohibit the advertising, holding out or representing to the public of any sale as being of the character above described which is not of such character and to fix license fees for the conduct of such sales and to impose penalties for the violation of any such ordinance;

k. (Deleted by amendment, P.L.1997, c.320.)

l. (Deleted by amendment, P.L.1984, c.205.)

m. The rental of real property for commercial purposes wherein the lease is for a term less than 175 consecutive days. No ordinance adopted pursuant to this subsection shall apply to any lease or occupancy which results from a tenant holding over at the expiration or early termination of a lease with an original term in excess of 175 consecutive days, regardless of whether the holdover is month-to-month or for some other term of less than 175 consecutive days; [and]

n. The rental of real property for a term less than 175 consecutive days for residential purposes by a person having a permanent place of residence elsewhere; and

o. The bulk processing of petroleum products. For the purposes of this subsection, a person or entity shall be deemed to be engaged in the bulk processing of petroleum products if the person or entity engages in at least three of the following activities within the municipality: the bulk transfer, terminaling, storage, refining, blending, or packaging of crude oil and its refined products. The storage of refined oil products on or off a construction site by a person or entity shall not be deemed as engaging in the bulk processing of petroleum products, when the refined oil products are to be used exclusively for the purposes of construction by that person or entity.

Nothing in this chapter contained shall be construed to authorize or empower the governing body of any municipality to license or regulate any person holding a license or certificate issued by any department, board, commission, or other agency of the State; provided, however, that the governing body of a municipality may make, amend, repeal and enforce ordinances to license and regulate real estate auctioneers or real estate brokers engaged in selling at auction and their business as provided in this section despite the fact that such real estate auctioneers or brokers may be licensed by the New Jersey Real Estate Commission and notwithstanding the provisions of this act or any other act.

(cf: P.L.1997, c.320, s.1)

5. This act shall take effect immediately and shall be retroactive to January 1, 2008.

STATEMENT

This bill would permit a municipality, in which the bulk transfer, terminaling, storage, refining, blending, or packaging of crude oil or its refined products takes place, to adopt an ordinance imposing, on the persons or entities engaging in at least three of those activities, an annual host community petroleum bulk processing impact fee. The presence of facilities handling and transferring large amounts of crude oil and refined petroleum products may have a negative impact on a community. The bill would permit municipalities to raise the revenues necessary to address the special problems created by these facilities. Current law does not permit municipalities to assess this type of fee.

The rate of the host community petroleum bulk processing impact fee would be determined in the ordinance and be applied to activities conducted during the second previous year before the adoption of the ordinance. Information would be required to be reported to the chief financial officer of the affected municipality, by February 1, concerning all crude oil and its refined products transferred, stored, terminaled, blended, or packaged in bulk within the municipality by the person paying the fee during the calendar year immediately preceding the reporting date.

The bill provides that the person or entity responsible for the bulk processing of petroleum products shall be required to pay the greater of the local property tax on its real and personal property or the host community petroleum bulk processing impact fee, except where a municipality requires the party to pay both the tax and the fee.

The storage of refined oil products on or off a construction site, on properties of operating common carrier railroads, or on properties of a commercial airport which provides for a minimum of 300 regularly scheduled commercial airplane flights per day, by a person or entity, shall not be deemed as engaging in the bulk processing of crude oil or its refined products and thereby not subject to a host community petroleum bulk processing impact fee. The storage and delivery of heating oil by a person or entity that is a wholesale or retail provider of home heating oil shall not be subject to a host community petroleum bulk processing impact fee.

Further, the bill amends R.S.40:52-1 to permit a municipality to license the bulk processing of crude oil and its refined products. If a person or entity engaging in one or more of those licensed activities fails to submit the required reports for the imposition of the fee, a fine of $10,000 per day can be imposed. If the required reports are not submitted after 60 days, the municipality could revoke or fail to renew the license necessary to conduct the activity within the municipality.