Bill Text: NJ A5088 | 2024-2025 | Regular Session | Introduced
Bill Title: Exempts sales of farm vehicles from sales and use tax for farmers.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced) 2024-12-12 - Introduced, Referred to Assembly Commerce, Economic Development and Agriculture Committee [A5088 Detail]
Download: New_Jersey-2024-A5088-Introduced.html
Sponsored by:
Assemblywoman ANDREA KATZ
District 8 (Atlantic and Burlington)
SYNOPSIS
Exempts sale of farm vehicles from sales and use tax for farmers.
CURRENT VERSION OF TEXT
As introduced.
An Act providing a sales and use tax exemption for certain farm vehicles, and amending P.L.1990, c.115.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 3 of P.L.1990, c.115 (C.54:32B-8.43) is amended to read as follows:
3. Receipts from: (a) sales, renting or leasing of commercial trucks, truck tractors, tractors, semitrailers, and vehicles used in combination therewith, as defined in R.S.39:1-1, which are registered in New Jersey and (1) have a gross vehicle weight rating in excess of 26,000 pounds, (2) are operated actively and exclusively for the carriage of interstate freight pursuant to a certificate or permit issued by the Interstate Commerce Commission, or (3) are sold to a farmer and registered pursuant to R.S.39:3-24 or R.S.39:3-25 [and have a gross vehicle weight rating in excess of 18,000 pounds]; and (b) repair and replacement parts for such vehicles, are exempt from the tax imposed under the "Sales and Use Tax Act."
A taxpayer claiming an exemption pursuant to paragraph (3) of subsection (a) of this section shall provide such documentation as required by the director to demonstrate that the taxpayer qualifies as a farmer and that farming is their primary source of income.
["Gross] As used in this section: "gross vehicle weight rating" means the value specified by the manufacturer as the loaded weight of the single or combination vehicle and, if the manufacturer has not specified a value for a towed vehicle, means the value specified for the towing vehicle plus the loaded weight of the towed unit.
(cf: P.L.1990, c.115, s.3)
2. This act shall take effect immediately.
STATEMENT
This bill amends current law to provide a sales and use tax exemption for farm vehicles purchased by farmers.
Current law exempts from sales and use tax the retail sales, rentals, and leases of certain commercial vehicles that are registered as farm vehicles with the New Jersey Motor Vehicle Commission (MVC), and which have a gross vehicle weight rating in excess of 18,000 pounds. This exemption applies to trucks, truck tractors, tractors, semitrailers, and combination vehicles. The bill expands this exemption to include any such vehicles sold to farmers and registered as farm vehicles with the MVC, regardless of their weight rating.
The bill requires a taxpayer claiming the exemption to provide documentation to the Division of Taxation in the Department of the Treasury demonstrating that that taxpayer qualifies as a farmer and that farming is the taxpayer's primary source of income.
