Bill Text: NJ AR120 | 2024-2025 | Regular Session | Introduced
Bill Title: Urges amendment of Streamlined Sales and Use Tax Agreement to create definition for oral health care products.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced) 2024-05-13 - Reported out of Assembly Committee, 2nd Reading [AR120 Detail]
Download: New_Jersey-2024-AR120-Introduced.html
Sponsored by:
Assemblyman HERB CONAWAY, JR.
District 7 (Burlington)
SYNOPSIS
Urges amendment of Streamlined Sales and Use Tax Agreement to create definition for oral health care products.
CURRENT VERSION OF TEXT
As introduced.
An Assembly Resolution urging the amendment of the Streamlined Sales and Use Tax Agreement to create a definition for oral health care products.
Whereas, Dental hygiene is critical to an individual's overall health and well-being; and
Whereas, Studies have consistently shown that those with poor oral health are at risk for a number of serious health issues such as heart disease, cancer, dementia, kidney failure, pneumonia, and diabetes; and
Whereas, The use of oral healthcare products, including toothbrushes, toothpaste, mouthwash, and dental floss, offer critical protection against diseases that can pose serious harm to one's health; and
Whereas, Having affordable access to oral health care products is essential to improving and maintaining good oral health and preventing serious disease or illness; and
Whereas, Oral healthcare products are considered "grooming and hygiene products" under the State's "Sales and Use Tax Act," and residents are currently required to pay sales tax on purchases of certain oral healthcare products at a rate of 6.625 percent; and
Whereas, A "grooming and hygiene product" is defined under the Sales and Use Tax Act as "a soap or cleaning solution, shampoo, toothpaste, mouthwash, anti-perspirant, or sun tan lotion or screen, regardless of whether the item meets the definition of 'over-the-counter drug'"; and
Whereas, The State of New Jersey adopted this definition in conformance with the Streamlined Sales and Use Tax Agreement (SSUTA), an agreement which the State entered in 2005; and
Whereas, The SSUTA is a multistate agreement that allows businesses operating in numerous states to more easily comply with the sales and use taxes imposed by member states; and
Whereas, One of the ways in which the SSUTA simplifies the administration of sales and use tax laws is by requiring member states to adopt common definitions for the products that are subject to tax, thereby providing greater uniformity among member states' tax bases; and
Whereas, Member states are permitted to exempt products from their respective sales and use tax provided that those exemptions are made in accordance with the product definitions contained within the SSUTA; and
Whereas,
Accordingly, as a member of the SSUTA, the State of New Jersey is restrained
from providing a sales and use tax exemption exclusively for oral healthcare
products without an amendment first being made to the agreement by the
Streamlined Sales Tax Governing Board; now, therefore,
Be It Resolved by the General Assembly of the State of New Jersey:
1. The Streamlined Sales Tax Governing Board is urged to amend the definition of the term "grooming and hygiene product" contained within the Streamlined Sales and Use Tax Agreement (SSUTA) to remove oral healthcare products.
2. The Streamlined Sales Tax Governing Board is urged to further amend the agreement to create a new product definition for "oral healthcare products," including toothbrushes, toothpaste, tooth powders, mouthwash, dental floss, and other similar products, to allow member states the ability to provide tax exemptions for the sale of these products, thereby ensuring greater affordability and access to these critical items.
3. Copies of this resolution, as filed with the Secretary of State, shall be transmitted by the Secretary of the Senate to the Governor, the State Treasurer, the Director of the Division of Taxation, and the Streamlined Sales Tax Governing Board.
STATEMENT
This resolution urges the Streamlined Sales Tax Governing Board to amend the Streamlined Sales and Use Tax Agreement, also known as SSUTA, to create a new definition for oral healthcare products.
Dental hygiene is critical to an individual's overall health and well-being. Studies have consistently shown that those with poor oral health are at risk for a number of serious health issues, such as heart disease, cancer, dementia, kidney failure, pneumonia, and diabetes. The use of oral healthcare products, including toothbrushes, toothpaste, mouthwash, and dental floss, offer critical protection against diseases that can pose serious harm to one's health. Residents of the State are currently required to pay sales tax on purchases of certain oral healthcare products at a rate of 6.625 percent. The imposition of a tax on these products is done in conformance with the Streamlined Sales and Use Tax Agreement (SSUTA) which New Jersey entered in 2005.
The SSUTA is a multistate agreement that allows businesses operating in numerous states to more easily comply with the sales and use taxes imposed by member states. One of the ways in which the SSUTA simplifies the administration of sales and use tax laws is by requiring member states to adopt common definitions for the products that are subject to tax, thereby providing greater uniformity among member states' tax bases. Member states are permitted to exempt products from their respective sales and use tax provided that those exemptions are made in accordance with the product definitions contained within the SSUTA. Accordingly, as a member of the SSUTA, the State of New Jersey is restrained from providing a sales and use tax exemption exclusively for oral healthcare products without an amendment first being made to the agreement by the Streamlined Sales Tax Governing Board.
This resolution urges the Streamlined Sales Tax Governing Board to amend the definition of the term "grooming and hygiene product" under the SSUTA to remove oral healthcare products. The resolution further urges the board to amend the agreement to create a new product definition for "oral healthcare products," including toothbrushes, toothpaste, tooth powders, mouthwash, dental floss, and other similar products, to allow member states the ability to provide tax exemptions for the sale of these products, thereby ensuring greater affordability and access to these critical items.
