Bill Text: NJ A4865 | 2024-2025 | Regular Session | Introduced
Bill Title: Establishes temporary sales tax exemption for small businesses impacted by ongoing public highway projects.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced) 2024-09-23 - Introduced, Referred to Assembly Commerce, Economic Development and Agriculture Committee [A4865 Detail]
Download: New_Jersey-2024-A4865-Introduced.html
Sponsored by:
Assemblywoman AURA K. DUNN
District 25 (Morris and Passaic)
SYNOPSIS
Establishes temporary sales tax exemption for small businesses impacted by ongoing public highway projects.
CURRENT VERSION OF TEXT
As introduced.
An Act establishing a temporary sales tax exemption for small businesses impacted by ongoing public highway projects, and supplementing Title 54 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. A small business that operates a retail business establishment within an impacted construction zone shall be entitled to an exemption from the tax imposed under the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.) for all retail sales and services occurring at the retail business establishment during the exclusion period, provided that the small business is approved by the director pursuant to subsection b. of this section.
b. Before or after the commencement of a public highway project, a small business may apply to the director for the exemption authorized under this section. The application shall be submitted in a form and manner prescribed by the director. The director shall require the small business to submit such documentation, records, and other information as the director deems necessary to verify that the small business meets the criteria set forth in subsection a. of this section. If the director deems that the small business meets the criteria set forth in subsection a. of this section, the director shall issue an exemption certificate to the small business, which certificate shall indicate the retail business establishments at which the sales tax exemption shall be available and the exclusion period for which the exemption shall apply.
c. As used in this section:
"Director" means the Director of the Division of Taxation.
"Exclusion period" means the period of time between the date in which a public highway project commences and the date in which the project concludes.
"Full-time employee" means a person who is employed by the small business for at least 35 hours per week at a wage no less than the State minimum wage.
"Impacted construction zone" means any area immediately surrounding a public highway project within which area the occurrence of the public highway project impedes or blocks the normal and reasonable flow of traffic or otherwise restricts access to business establishments located with the area.
"Public highway project" means any infrastructure project that involves the construction, improvement, or maintenance of a State, county, or municipal highway, road, or street.
"Retail business establishment" means a fixed permanent location where goods are exhibited or services are offered on an appointment or walk-in basis.
"Small business" means a business with no more than 50 full-time employees, is independently owned and operated, and has its principal place of business in the State of New Jersey.
2. The Director of the Division of Taxation shall, in accordance with the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), adopt rules and regulations as necessary to implement this act.
3. This act shall take effect immediately.
STATEMENT
This bill provides a temporary sales tax exemption for transactions made at certain retail business establishments that are operated by qualified small businesses, and which are impacted by ongoing public highway projects.
Specifically, the bill provides that temporary sales tax exemption would be available at retail business establishments that are located within an "impacted construction zone," which the bill defines as any area immediately surrounding a public highway project within which area the occurrence of the public highway project impedes or blocks the normal and reasonable flow of traffic or otherwise restricts access to business establishments located with the area. To qualify for the exemption, the retail business establishment would have to be operated by a "small business," which the bill defines as a business with no more than 50 full-time employees, is independently owned and operated, and has its principal place of business in the State of New Jersey.
Under the bill, a qualified small business would be required to apply to the Director of the Division of Taxation before claiming the sales tax exemption. Upon approval of an application, the director would provide issue an exemption certificate to the small business, which certificate would indicate the retail business establishments at which the sales tax exemption is available and the exclusion period for which the exemption applies. However, the bill provides that the temporary sales tax exemption may only occur during the period between the date in which a public highway project commences and the date in which the project concludes.
