Sponsored by:
Senator ANTHONY M. BUCCO
District 25 (Morris and Passaic)
SYNOPSIS
Provides temporary deduction for food and beverage establishments from certain sales and use tax remittances.
CURRENT VERSION OF TEXT
As introduced.
An Act providing a temporary deduction for food and beverage establishments from remittances under the "Sales and Use Tax Act," 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. A seller operating a restaurant establishment, mobile food services establishment, or alcoholic beverages establishment may deduct from the remittance required under section 18 of the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-18), the amount of taxes collected from not more than $70,000 in taxable sales received per eligible business location during each month of the relief period. The deduction allowed pursuant to this section shall not exceed the amount of taxes collected at the business location during the month for which the deduction is claimed.
b. (1) If a seller operates an alcoholic beverages establishment or a restaurant establishment, the seller may claim the deduction for no more than five business locations, except that no deduction shall be allowed for:
(a) nonphysical sites that are established for the purposes of reporting taxable sales; or
(b) a temporary business location or special event.
(2) If a seller operates a mobile food services establishment, the seller may claim the deduction for no more than five motorized vehicles or nonmotorized carts.
(3) If a seller operates both a restaurant establishment and a mobile food services establishment, the seller may claim the deduction for no more than five business locations and may also claim the deduction for no more than five motorized vehicles or nonmotorized carts.
c. A seller may claim the deduction on the monthly or quarterly return filed to the Director of the Division of Taxation in the Department of the Treasury pursuant to section 17 of P.L.1966, c.30 (C.54:32B-17). The seller shall retain the collections of any taxes for which the deduction is claimed.
d. As used in this section:
"Alcoholic beverages establishment" means a business primarily that is engaged in preparing and serving alcoholic beverages for immediate, on-premises consumption, and that may also prepare and serve meals or other food items for on-premises consumption. The term includes, but is not limited to, breweries, distilleries, wineries, and brew pubs.
"Mobile food services establishment" means a business primarily engaged in preparing and serving meals, snacks, or nonalcoholic beverages for immediate consumption from motorized vehicles or nonmotorized carts. The term does not include businesses that deliver food prepared by third parties, or businesses that prepare and deliver meal kits, heat-at-home meals, or other unprepared food to consumers for home consumption.
"Relief period" means the four-month period beginning on the first day of the second month next following the effective date of P.L. , c. (pending before the Legislature as this bill) and ending on the last day of the fifth month next following the effective date of P.L. , c. (pending before the Legislature as this bill).
"Restaurant establishment" means a business primarily engaged in preparing and serving meals and other food items that are primarily intended for on-premises consumption. The term does not include fast-food restaurants that dispense food intended to be ordered, prepared, and served quickly, with minimal or no table service.
2. Notwithstanding any provision 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 shall adopt, immediately upon filing with the Office of Administrative Law, and no later than the 30th day after the effective date of this act, such rules and regulations as the director deems necessary to implement the provisions of P.L. , c. (pending before the Legislature as this bill).
3. This act shall take effect immediately and expire on the 21st day of the eighth month next following the date of enactment.
STATEMENT
This bill provides a temporary deduction for food and beverage establishments from remittances under the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.). Through this deduction, these establishments would retain a portion of the sales taxes that are collected at certain business locations.
Under the bill, a qualifying food or beverage establishment may deduct from the remittance required under the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.), the amount of taxes collected from not more than $70,000 in taxable sales received per eligible business location during each month of a four-month relief period. However, the deduction may not exceed the amount of taxes collected at the business location during the month for which the deduction is claimed. After claiming the deduction, a qualifying food or beverage establishment would retain the collection of any taxes for which the deduction is claimed.
The following food and beverage establishments would qualify for the deduction: (1) alcoholic beverage establishments, including breweries, wineries, distilleries, and brew pubs; (2) restaurant and food establishments, not including fast-food restaurants, and (3) mobile food service establishments, including food trucks and food stands.
The bill allows a qualifying food or beverage establishment to claim the dedication for not more than five business locations. However, if a seller operates both a restaurant establishment and a mobile food services establishment, the deduction could be claimed for not more than five business locations and not more than five motorized vehicles or nonmotorized carts.
Under the bill, the four-month relief period would begin on the first day of the second month following the date of enactment and conclude on the last day of the fifth month following the date of enactment.