New Jersey legislators approved a bill that allows tax on vehicles rented at Newark Liberty International Airport to be applied to close any funding gap that arise from 2015 to 2017, according an NJ.com report.
Newark will be allowed to use revenue from the tax to close operating deficits through 2017, but will only have access to half the revenue in the years that follow, according to the article.
The tax rate will not exceed 5% of the total amount charged to rent a vehicle at the airport, according to the bill.
Previously, proceeds were only used to subsidize developments and other programs aimed at spurring economic activity. Newark’s state delegation argued that it is more important to use the proceeds to address the city’s cash deficit under current economic conditions.
Click here for the full NJ.com report.