Bill Text: NJ A4630 | 2018-2019 | Regular Session | Introduced
Bill Title: Provides sales and use tax exemption for purchases of certain storm mitigation goods and services.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2018-10-22 - Introduced, Referred to Assembly Housing and Community Development Committee [A4630 Detail]
Download: New_Jersey-2018-A4630-Introduced.html
Sponsored by:
Assemblywoman JOANN DOWNEY
District 11 (Monmouth)
SYNOPSIS
Provides sales and use tax exemption for purchases of certain storm mitigation goods and services.
CURRENT VERSION OF TEXT
As introduced.
An Act providing a sales and use tax exemption for purchases of certain storm mitigation goods and services, 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. As used in this section:
"Coastal area" means those areas of the State identified by postal zip code as designated by the commissioner.
"Commissioner" means the Commissioner of Banking and Insurance.
"Homeowners insurance policy" means a personal lines insurance policy insuring against loss to real and personal property, as defined in the standard fire policy and extended coverage endorsement; dwelling policy; homeowners multiple peril policy; or insurance against the perils of vandalism, malicious mischief, burglary, or theft or liability insurance covering residential property.
"Residential property" means any portion of any dwelling unit, planned real estate development, or cooperative, and all structures appurtenant thereto, and any portion of the lot, curtilage, or site on which the unit or structure is situated.
"Storm mitigation purposes" means the purchase, maintenance, service, repair, or installation of storm shutters, soffits, shingles, or seals on a residential property that are designed to aid in the migration of losses in the event of a hurricane or other severe storm and rated and marketed specifically for the purpose of preventing damage from storms.
b. (1) Receipts from sales of tangible personal property for storm mitigation purposes to an insured for repairs, improvements, or both to a residential property located in a coastal area of this State and insured under a homeowners insurance policy shall be exempt from the tax imposed under the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.).
(2) The receipts from sales of the services of installing, maintaining, servicing, or repairing tangible personal property for storm mitigation purposes to an insured for repairs, improvements, or both to a residential property located in a coastal area of this State and insured under a homeowners insurance policy shall be exempt from the tax imposed under the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.).
c. Notwithstanding the provisions of subsection b. of this section, the seller shall charge and collect the tax imposed pursuant to the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.), from the insured on eligible sales and charges at the rate then in effect. The director shall refund the tax to the insured within 360 days of the date of purchase upon the filing of a claim by the insured with the division on a form prescribed by the director.
d. Notwithstanding the provisions of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.) to the contrary, the director, in consultation with the commissioner, may adopt immediately upon filing with the Office of Administrative Law such rules and regulations as the director determines to be necessary and appropriate to effectuate the purposes of this act, P.L. , c. (C. ) (pending before the Legislature as this bill), including rules and regulations specifying repairs and improvements that qualify for the exclusion provided by this act act, which rules and regulations shall be effective for a period not to exceed 360 days following the effective date of this act. The director may thereafter amend, adopt, or readopt the regulations in accordance with the requirements of P.L.1968, c.410 (C.52:14B-1 et seq.).
2. This act shall take effect immediately but shall remain inoperative until the first day of the sixth month following enactment.
STATEMENT
This bill provides a sales and use tax exemption for the purchase of goods and services for storm mitigation purposes. The bill defines "storm mitigation purposes" as the purchase, maintenance, service, repair, or installation of storm shutters, soffits, shingles, or seals on a residential property that are designed to aid in the migration of losses in the event of a hurricane or other severe storm and rated and marketed specifically for the purpose of preventing damage from storms.
Under the bill, receipts from sales of tangible personal property for storm mitigation purposes to a purchaser for repairs, improvements, or both to a residential property located in a coastal area of this State and insured under a homeowners insurance policy are exempt from the sales and use tax. Additionally, receipts from sales of the services of installing, maintaining, servicing, or repairing tangible personal property for storm mitigation purposes to a purchaser for repairs, improvements, or both to a residential property located in a coastal area of this State and insured under a homeowners insurance policy are exempt from the sales and use tax.
The bill requires a seller to charge and collect the sales and use tax on eligible purchases at the rate then in effect. The purchaser may then apply to the Director of the Division of Taxation for a refund of the tax paid. The bill requires the director to refund the tax to the purchaser within 360 days of the date of purchase.
This bill takes effect immediately but will remain inoperative until the first day of the sixth month following enactment.
