Bill Text: NJ A1455 | 2020-2021 | Regular Session | Introduced
Bill Title: Establishes annual sales tax holiday for certain sales of personal computers and certain sales of school supplies and equipment during first full weekend of August.
Spectrum: Moderate Partisan Bill (Democrat 7-1)
Status: (Introduced - Dead) 2020-01-14 - Introduced, Referred to Assembly Budget Committee [A1455 Detail]
Download: New_Jersey-2020-A1455-Introduced.html
STATE OF NEW JERSEY
219th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2020 SESSION
Sponsored by:
Assemblyman PAUL D. MORIARTY
District 4 (Camden and Gloucester)
Assemblyman LOUIS D. GREENWALD
District 6 (Burlington and Camden)
Assemblywoman PAMELA R. LAMPITT
District 6 (Burlington and Camden)
Assemblyman ERIK PETERSON
District 23 (Hunterdon, Somerset and Warren)
Co-Sponsored by:
Assemblymen McKeon, Wimberly and Coughlin
SYNOPSIS
Establishes annual sales tax holiday for certain sales of personal computers and certain sales of school supplies and equipment during first full weekend of August.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act establishing an annual sales tax holiday in New Jersey for certain retail sales of personal computers and certain sales of school supplies and equipment, supplementing P.L.1966, c.30 (C.54:32B-1 et seq.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. Receipts from retail sales of a personal computer with a sales price of less than $1,000, otherwise taxable pursuant to subsection (a) of section 3 of P.L.1966, c.30 (C.54:32B-3), to an individual purchaser made during the annual exclusion period for non-business use, but not including computer leasing, rental, repair or alteration, are exempt from the tax imposed under the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.).
b. As used in this section,
"Annual exclusion period" means the period of time between 12:01 a.m. on the first Friday in August of each year and 11:59 p.m. the following Sunday; and
"Personal computer" means a laptop, desktop, or tower computer system, including all computer hardware and software sold together in the same sale at retail, if the computer system includes, at a minimum, a central processing unit, random access memory, a data storage device, a display monitor and a keyboard, except that the term shall not include minicomputers, mainframe computers, network servers, local area network hubs, routers and cabling, hardware word processors, personal digital assistants, graphical calculators, hand-held computers, game consoles, Internet TV devices, network operating systems, multiple-user licensed software and hardware, separate sales at retail or use of internal or external components and separate sales of add-on components.
2. a. Receipts from retail sales of school supplies, school equipment, and school-related items sold to a consumer during the annual exclusion period, otherwise taxable pursuant to subsection (a) of section 3 of P.L.1966, c.30 (C.54:32B-3), are exempt from the tax imposed under the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.).
b. As used in this section,
"Annual exclusion period" means the period of time between 12:01 a.m. on the first Friday in August of each year and 11:59 p.m. the following Sunday; and
"School supplies, school equipment and school-related items" means:
(1) items required or recommended by teachers, schools or school districts preparatory to the beginning of a new school year; and
(2) items generally accepted as being required for a student to be prepared for satisfaction of the core curriculum content standards or course credit in the undertaking of a school year.
3. Notwithstanding the provisions of P.L.1968, c.410 to the contrary, the director may adopt immediately upon filing with the Office of Administrative Law, such regulations as the director, in consultation as appropriate with the Commissioner of Education, deems necessary to implement the provisions of sections 1 and 2 of P.L. , c. (C. ) ( now pending before the Legislature as this bill) and to maintain compliance with the Streamlined Sales and Use Tax Agreement, which regulations shall be effective for a period not to exceed 180 days from the date of the filing. The regulations may thereafter be amended, adopted or readopted by the director as the director deems necessary in accordance with the requirements of P.L.1968, c.410.
4. This act shall take effect immediately.
STATEMENT
This bill establishes an annual "back-to-school" sales tax holiday in the State of New Jersey during the first full weekend in August. During the three day period from the first Friday through the following Sunday, the retail purchases of certain personal computers with a sales price of less than $1,000, and certain school supplies and equipment made by individual shoppers for non-business purposes will be free of the State sales tax. While the tax holiday is intended to provide financial relief to the students of New Jersey and their families, the general public may also make tax-free purchases for other nonbusiness uses during this time period.
Annual and temporary sales tax holidays have been established in fifteen states and the District of Columbia, and have gained popularity and support in several others. While some states have opted to celebrate tax holidays at the beginning of the calendar year or during seasonal holiday periods, a majority of states have established tax moratoria during some portion of the month of August, as families prepare to send their children back to school. These tax holidays typically include exemptions for purchases of educational supplies, consumer products, and clothing items that allow students to face the challenges of the coming year.
This bill specifically exempts the purchases of personal computers that are sold for less than $1,000 as well as school-related supplies and equipment during the annual exclusion period. In particular, it would exempt the purchases of computers for personal use and school-related supplies and equipment that are either (1) required or recommended by teachers, schools, or school districts in order to prepare for the new school year; or (2) generally accepted as being required for students to satisfy the core curriculum content standards or course credit work in the undertaking of a school year.
Unlike other tax relief initiatives, the establishment of a back-to-school sales tax holiday in New Jersey could be developed and implemented with minimal administrative effort. It would provide an administratively simple and effective way to cut taxes for consumers that would require no special taxpayer forms or rebate applications. In addition, it would be economically beneficial to the State's merchants and small business owners by encouraging consumer spending during a period of time when demand is typically soft.
