Sponsored by:
Assemblywoman ELIANA PINTOR MARIN
District 29 (Essex and Hudson)
Assemblyman BENJIE E. WIMBERLY
District 35 (Bergen and Passaic)
SYNOPSIS
Phases out sales and use tax exemption on zero emission vehicles; repeals annual sales tax holiday for certain school supplies and sport or recreational equipment.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning sales and use tax exemptions, amending P.L.2003, c.266 and P.L.2015, c.24, and repealing P.L.2022, c.21.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 11 of P.L.2003, c.266 (C.54:32B-8.55) is amended to read as follows:
11. a. (1) Receipts from sales of zero emission vehicles sold on or after the first day of the fourth month following the effective date of P.L.2003, c.266 (C.26:2C-8.15 et al.) and before October 1, 2024 are exempt from the tax imposed under the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.);
(2) There is imposed and there shall be paid a tax of 3.3125 percent on the receipts from sales of zero emission vehicles sold on or after October 1, 2024 but before July 1, 2025; and
(3) There is imposed and there shall be paid a tax at the rate set forth in section 3 of P.L.1966, c.30 (C.54:32B-3) on the receipts from sales of zero emission vehicles sold on or after July 1, 2025.
b. The Commissioner of Environmental Protection shall certify to the State Treasurer the make and model of those motor vehicles that are zero emission vehicles and eligible for the exemption provided pursuant to subsection a. of this section.
c. As used in this section, "zero emission vehicle" means a vehicle certified as a zero emission vehicle pursuant to the California Air Resources Board zero emission vehicle standards for the applicable model year, but shall not include any other type of vehicle that may be delivered by a manufacturer for sale or lease to satisfy the zero emission vehicle requirement established by the California Air Resources Board in lieu of a vehicle that qualifies as a pure zero emission vehicle.
(cf: P.L.2003, c.266, s.11)
2. Section 7 of P.L.2015, c.24 (C.54:32B-8.55a) is amended to read as follows:
7. Before March 1 annually, all motor vehicle franchisors and motor vehicle franchisees in the State, as defined pursuant to section 1 of P.L.1985, c.361 (C.56:10-26), shall report to the Division of Taxation the number of zero emission vehicles sold in the State each calendar year and [exempt] the amounts remitted from the tax imposed under the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.) [pursuant to section 11 of P.L.2003, c.266 (C.54:32B-8.55)] on such vehicles.
(cf: P.L.2015, c.24, s.7)
3. P.L.2022, c.21 (C.54:32B-8.21a and C.54:32B-8.21b) is repealed.
4. This act shall take effect immediately.
STATEMENT
This bill eliminates the sales and use tax exemptions provided under current law for the sales of zero emission vehicles, as well as the sales of certain products during the State's annual sales tax holiday.
Specifically, the bill phases out the sales and use tax exemption currently provided for sales of zero emission vehicles as follows: (1) a tax rate of 3.3125 percent would be imposed on the sale of zero emission vehicles from October 2024 through June 2025; and (2) beginning on July 1, 2025, the sales and use tax would be imposed at the statutory rate authorized in the "Sales and Use Tax Act," which is currently 6.625 percent.
The bill also repeals the annual sales tax holiday established by P.L.2022, c.21 for retail sale of computers, school computer supplies, school supplies, school instructional materials, and sport or recreational equipment. Under current law, the sales tax holiday is in effect during the ten-day period up to and including the first Monday in September.
This bill implements certain proposals concerning the sales and use tax that were included in the Governor's Fiscal Year 2025 budget recommendations.