New Jersey-2014-A4644-Introduced

An Act providing an exemption from use tax for certain boats and other vessels that are used in connection with qualified fishing contests, 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. In addition to any use of property exempt from tax pursuant to section 11 of P.L.1966, c.30 (C.54:32B-11), the use of a boat or other vessel in connection with the taking of any species of freshwater or saltwater fish during a qualified fishing contest, and at any time during the 30 days immediately preceding and the 30 days immediately following a qualified fishing contest, shall not be subject to the compensating use tax imposed by section 6 of P.L.1966, c.30 (C.54:32B-6).

b. For purposes of this section, "qualified fishing contest" means a predetermined event of a definite duration in which 25 or more individuals engage in the taking of any species of freshwater or saltwater fish for sport or other recreational purposes by any means or method permitted by law, and determine winners, regardless of prize value.

2. Notwithstanding the provisions of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.) to the contrary, the Director of the Division of Taxation in the Department of the Treasury may adopt immediately upon filing with the Office of Administrative Law such rules and regulations as the director determines to be necessary to implement the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill), which rules and regulations shall be effective for a period not to exceed 360 days following the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill) and may thereafter be amended, adopted, or readopted by the director in accordance with the requirements of P.L.1968, c.410 (C.52:14B-1 et seq.).

3. This act shall take effect immediately, provided that section 1 shall apply to uses occurring on or after January 1 next following the date of enactment.

STATEMENT

This bill provides an exemption from use tax for certain boats and other vessels that are used in connection with a qualified fishing contest.

Under the bill, the use of a boat or other vessel is exempt from the State's compensating use tax if it is used in connection with a qualified fishing contest and the use of the boat or vessel is limited to the duration of the contest and at any time during the 30 days immediately preceding and the 30 days immediately following the contest. The bill defines a "qualified fishing contest" as a predetermined event of a definite duration in which 25 or more individuals engage in the taking of any species of freshwater or saltwater fish for sport or other recreational purposes by any means or method permitted by law, and determine winners, regardless of prize value.

The bill authorizes the Director of the Division of Taxation in the Department of the Treasury to adopt rules and regulations necessary to implement the exemption provided by the bill, and allows for the immediate filing of those rules and regulations with the Office of Administrative Law, effective for a period not to exceed 360 days following the bill's effective date.

The bill takes effect immediately, but provides for the exemption to apply to uses occurring on or after January 1 next following the date of enactment.

The purpose of this bill is to provide New Jersey residents a limited opportunity to use boats and other vessels, that are acquired and ordinarily kept and maintained out-of-State, in this State in connection with certain fishing contests without incurring a tax liability. Currently, boats and other vessels that are acquired by residents of this State from a dealer outside this State for use outside this State are subject to use tax at the time the boat or other vessel is first used in this State, unless the purchase of the boat is exempt from tax or the resident is eligible to claim a credit for sales tax paid to another state or jurisdiction.