Bill Text: NJ A2611 | 2012-2013 | Regular Session | Introduced
Bill Title: Provides sales and use tax exemption for sales of natural gas, and charges for transportation or transmission of natural gas, to certain colleges and universities.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2012-04-25 - Reviewed by the Sales Tax Review Commission Recommend to not enact [A2611 Detail]
Download: New_Jersey-2012-A2611-Introduced.html
Sponsored by:
Assemblywoman PAMELA R. LAMPITT
District 6 (Burlington and Camden)
SYNOPSIS
Provides sales and use tax exemption for sales of natural gas, and charges for transportation or transmission of natural gas, to certain colleges and universities.
CURRENT VERSION OF TEXT
As introduced.
An Act providing a sales and use tax exemption for sales of natural gas, and charges for the transportation or transmission of natural gas, to certain colleges and universities, 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. Receipts from sales of natural gas and from charges for the transportation or transmission of natural gas made or rendered to a college or to a university for that college's or that university's own use or consumption are exempt from the tax imposed by the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.), if the college or the university is exempt from taxation pursuant to paragraph (1) of subsection (a) of section 9 of P.L.1966, c.30 (C.54:32B-9) or the college or the university is exempt from taxation pursuant to paragraph (1) of subsection (b) of section 9 of P.L.1966, c.30 (C.54:32B-9) and has complied with subsection (d) of section 9 of P.L.1966, c.30 (C.54:32B-9).
2. This act shall take effect immediately and apply to billing periods beginning on or after the first day of the third calendar month beginning after the date of enactment.
STATEMENT
This bill provides an exemption from the sales and use tax for sales of natural gas and charges for the transportation or transmission of natural gas which are made or rendered to certain colleges and universities for their own use or consumption.
Under current law, colleges and universities that are organized and operated within this State are generally required to pay the sales and use tax determined to be due in connection with purchases of energy and utility service. This means that State as well as private, independent colleges and universities must pay tax on purchases of natural gas, and any associated charges for the transportation or transmission of natural gas, which are used to heat their buildings or provide power to their facilities.
The bill modifies this treatment of natural gas and the transportation or transmission of natural gas under current law so that colleges and universities can make tax-free purchases of natural gas and tax-free purchases of the transportation or transmission of natural gas. The bill specifically limits the exemption to sales of natural gas and charges for the transportation or transmission of natural gas which are used or consumed by the college or university that made the purchase, and stipulates that private, independent colleges and universities must obtain a tax immunity authorization from the Division of Taxation in the Department of Treasury to be eligible to claim the exemption.
The bill takes effect immediately and applies to billing periods beginning on or after the first day of the third calendar month beginning after the date of enactment.
The purpose of this bill is to reduce the cost of purchasing natural gas in an effort to reduce a portion of the overall cost associated with operating New Jersey's public and private colleges and universities during the current economic decline.
