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New parking taxes for New Jersey’s most populated cities

New parking taxes for New Jersey’s most populated cities

The Senate and General Assembly of the State of New Jersey enacted AB 5070 on January 9, 2020. AB 5070 authorizes municipalities with a population of 100,000 or more to enforce parking taxes to finance projects to improve pedestrian access to mass transit.

According to the act, any municipality with a population of 100,000 or greater according to the U.S. Census Bureau’s American Community Survey five-year estimate has the authority to impose the parking taxes. Currently, there are only six municipalities in the state that qualify for enacting the parking tax: Township of Edison, City of Elizabeth, City of Jersey City, City of Newark, City of Paterson, and Township of Woodbridge.

Taxes up to 3.5 percent can be imposed for parking, garaging, and storing of vehicles other than parking in private one or two-family units. The revenue generated will be used to finance pedestrian access improvement projects such as bridges, elevators, walkways, platforms, walkways, and stairways that improve pedestrian access to trains, buses and other public transportation venues. The tax must be used for projects directly related to pedestrian access to mass transit. The legislation states that any revenue surplus after the projects are completed will be used for quality of life improvement projects within the municipality but does not expand on it.

Certain discounts and exemptions apply to the residents. For more information please visit https://www.njleg.state.nj.us/2018/Bills/A9999/5070_R1.HTM.

 


Image Source: Photo by Omer Rana on Unsplash