Bill Text: NJ A2140 | 2024-2025 | Regular Session | Introduced
Bill Title: Exempts protective face coverings from sales and use tax during public health emergencies.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2024-01-09 - Introduced, Referred to Assembly Health Committee [A2140 Detail]
Download: New_Jersey-2024-A2140-Introduced.html
STATE OF NEW JERSEY
221st LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2024 SESSION
Sponsored by:
Assemblyman WILLIAM F. MOEN, JR.
District 5 (Camden and Gloucester)
SYNOPSIS
Exempts protective face coverings from sales and use tax during public health emergencies.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act exempting protective face coverings from the sales and use tax during public health emergencies, amending P.L.1980, c.105.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 13 of P.L.1980, c.105 (54:32B-8.1) is amended to read as follows:
13. a. Receipts from sales of the following sold for human use are exempt from the tax imposed under the "Sales and Use Tax Act":
(1) drugs sold pursuant to a doctor's prescription;
(2) over-the-counter drugs;
(3) diabetic supplies;
(4) prosthetic devices;
(5) tampons or like products;
(6) medical oxygen;
(7) human blood and its derivatives;
(8) durable medical equipment for home use;
(9) mobility enhancing equipment sold by prescription; and
(10) repair and replacement parts for any of the foregoing exempt devices and equipment.
b. As used in this section:
"Drug" means a compound, substance, or preparation, and any component of a compound, substance, or preparation, other than food and food ingredients, dietary supplements, or alcoholic beverages:
(1) recognized in the official United States Pharmacopoeia, official Homeopathic Pharmacopoeia of the United States, or official National Formulary, and supplement to any of them; or
(2) intended for use in the diagnosis, cure, mitigation, treatment, or prevention of disease; or
(3) intended to affect the structure or any function of the body.
"Over-the-counter-drug" means a drug that contains a label which identifies the product as a drug, required by 21 CFR 201.66. The label includes:
(1) a "Drug Facts" panel or
(2) a statement of the "active ingredient" or "active ingredients" with a list of those ingredients contained in the compound, substance or preparation. "Over-the-counter drug" does not include a grooming and hygiene product.
"Grooming and hygiene product" is 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."
"Prescription" means an order, formula, or recipe issued in any form of oral, written, electronic, or other means of transmission by a duly licensed practitioner authorized by the laws of this State.
"Prosthetic device" means a replacement, corrective, or supportive device including repair and replacement parts for same worn on or in the body in order to:
(1) artificially replace a missing portion of the body; or
(2) prevent or correct a physical disability; or
(3) support a weak or disabled portion of the body.
"Durable medical equipment" means equipment, including repair and replacement parts, but not including mobility enhancing equipment, that:
(1) can withstand repeated use;
(2) is primarily and customarily used to serve a medical purpose;
(3) is generally not useful to a person in the absence of illness or injury; and
(4) is not worn in or on the body.
"Mobility enhancing equipment" means equipment, including repair and replacement parts, other than durable medical equipment, that:
(1) is primarily and customarily used to provide or increase the ability to move from one place to another and which is appropriate for use either at home or in a motor vehicle; and
(2) is not generally used by persons with typical mobility; and
(3) does not include any motor vehicle or equipment on a motor vehicle normally provided by a motor vehicle manufacturer.
"Protective face coverings" means medical masks, respirators, or other face coverings that are designed, or sold for use, to protect the wearer or others from the spread of infection or illness.
c. Receipts from sales of supplies purchased for use in providing medical services for compensation, but not transferred to the purchaser of the service in conjunction with the performance of the service, shall be considered taxable receipts from retail sales notwithstanding the exemption from the tax imposed under the "Sales and Use Tax Act" provided under this section.
d. Receipts from sales of protective face coverings shall be exempt from the tax imposed under the "Sales and Use Tax Act" during a State-wide public health emergency declared by the Governor pursuant to the "Emergency Health Powers Act," P.L.2005, c.222 (C.26:13-1 et seq.); provided that agencies or official representatives of the federal or State government require or encourage protective face coverings to be worn to help mitigate the public health emergency.
(cf: P.L.2017, c.131, s.214)
2. This act shall take effect
immediately.
STATEMENT
This bill exempts protective face coverings from taxation under the "Sales and Use Tax Act" during a State-wide public health emergency declared by the Governor provided that agencies or official representatives of the federal or State government require or encourage New Jerseyans to wear protective face coverings to mitigate the public health emergency. In response to the COVID-19 pandemic, the Governor has mandated New Jerseyans to wear protective face coverings, commonly referred to as masks, indoors and outdoors when social distancing is not feasible. By exempting protective face coverings from sales and use tax during public health emergencies, cost will become less of a barrier to purchasing protective face coverings during a time when they are necessary for safeguarding public health.
As defined in the bill, protective face coverings are medical masks, respirators, or other coverings that are designed, or sold for use, to protect the wearer or others from the spread of infection or illness.
