Sponsored by:
Assemblyman REED GUSCIORA
District 15 (Mercer)
Assemblywoman CAROLINE CASAGRANDE
District 12 (Mercer and Monmouth)
Co-Sponsored by:
Assemblywoman Lampitt
SYNOPSIS
Establishes sales tax holiday for certain energy efficient products during third week of April and October.
CURRENT VERSION OF TEXT
As introduced.
An Act establishing a sales tax holiday in New Jersey for retail sales of certain energy efficient products and 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. Notwithstanding any other law to the contrary, receipts from every retail sale of an energy efficient product in this State, with a sales price of less than or equal to $2,500, 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 semi-annual exclusion period for non-business use, are exempt from the sales 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:
"Energy efficient product" means an Energy Star qualified dishwasher, clothes washer or dryer, air conditioner, ceiling fan, compact fluorescent light bulb, dehumidifier, programmable thermostat, refrigerator, and weatherization product, the energy efficiency of which has been designated by the United States Environmental Protection Agency and the United States Department of Energy as meeting or exceeding each such agency's requirements under the Energy Star program.
"Semi-annual exclusion period" means the period of time between 12:01 a.m. on the third Monday in April of each year and 11:59 p.m. the following Sunday, and the period of time between 12:01 a.m. on the third Monday in October of each year and 11:59 p.m. the following Sunday.
"Weatherization product" means window film, caulking marketed for preventing drafts, window and door weather strips, insulation, water heater blankets, water heaters, boilers and oil furnaces of no less than 84% efficiency, natural gas and propane furnaces that meet Energy Star qualifications, windows and doors that are Energy star qualified, and ground source heat pumps that meet or exceed federal energy efficiency ratings.
2. This act shall take effect immediately.
STATEMENT
This bill establishes a semi-annual sales tax holiday for the purchase of energy efficient products during the third week of April and October of each year. During this semi-annual period, the retail purchases of certain energy efficient products, with a sales price of less than or equal to $2,500, would be exempt from the 7% State sales tax.
Under this bill, an energy efficient product eligible for sales tax exemption includes: an Energy Star qualified dishwasher, clothes washer or dryer, air conditioner, ceiling fan, compact fluorescent light bulb, dehumidifier, programmable thermostat, refrigerator, and weatherization product. Weatherization products eligible for the sales tax exemption are limited to: window film, caulking marketed for preventing drafts, window and door weather strips, insulation, water heater blankets, water heaters, boilers and oil furnaces of no less than 84% efficiency, natural gas and propane furnaces that meet Energy Star qualifications, windows and doors that are Energy star qualified, and ground source heat pumps that meet federal energy efficiency rating.
Temporary sales tax holidays for energy efficient products have occurred in several states. The sales tax holiday proposed in this bill would encourage consumers to purchase energy efficient products, which would benefit the consumer and society in general through lower energy usage and energy cost.