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Can you summarize NJST 5:12-144.1?
Imposition of investment alternative tax.
Short Summary
This legal document imposes an investment alternative tax on the gross revenues of licensees operating casinos in New Jersey. The tax is set at 2.5% of the gross revenues and is due and payable on the last day of April following the end of the calendar year. The State Treasurer has a lien against the property of a licensee for any unpaid taxes. However, no tax is imposed on the gross revenues received by a licensee during the first 12 months of operation of a casino that commenced operation after January 1, 1984, but prior to the effective date of P.L.1996, c.118. Licensees are required to make partial payments of the tax on a quarterly basis. The funds received are placed in an escrow account and can be used for the purchase of bonds, direct investments approved by the authority, or as partial payment of the investment alternative tax. Failure to pay the tax or underpayment may result in a fine of 5% of the amount due or underpayment per month in default, up to 25% of the amount in default. Licensees are entitled to an investment tax credit against the tax imposed, subject to certain conditions. The Casino Reinvestment Development Authority has the power to enter into contracts with licensees for the purchase of bonds and may repurchase bonds under certain circumstances. The tax obligations of a licensee end 50 years after the first tax obligation is incurred, unless extended through a deferral granted by the Casino Reinvestment Development Authority.
Whom does it apply to?
Licensees operating casinos in New Jersey
What does it govern?
Imposition of investment alternative tax on gross revenues of licensees
What are exemptions?
No tax imposed on gross revenues received by a licensee during the first 12 months of operation of any casino that commenced operation after January 1, 1984, but prior to the effective date of P.L.1996, c.118
What are the Penalties?
Fine of 5% of the amount due or underpayment for each month in default of payment, up to 25% of the amount in default
Jurisdiction
New Jersey