Bill Text: NJ A2285 | 2012-2013 | Regular Session | Introduced
Bill Title: Provides sales and use tax exemption for sales of certain security-related goods and services.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2012-03-12 - Reviewed by the Sales Tax Review Commission recommend to not enact [A2285 Detail]
Download: New_Jersey-2012-A2285-Introduced.html
Sponsored by:
Assemblywoman ANNETTE QUIJANO
District 20 (Union)
SYNOPSIS
Provides sales and use tax exemption for sales of certain security-related goods and services.
CURRENT VERSION OF TEXT
As introduced.
An Act providing a sales and use tax exemption for sales of certain security-related goods and services, 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. (1) Receipts from sales of security apparatus and equipment and from sales of parts, supplies, and materials necessary to install, maintain, service, or repair security apparatus and equipment are exempt from the tax imposed by the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.), if the apparatus and equipment or the parts, supplies, and materials are used or consumed directly and exclusively to enhance the security of a property, or to enhance the security of a person on a property, that is certified as an asset that is critical to the infrastructure of this State by the Director of the Office of Homeland Security and Preparedness pursuant to the provisions of this section.
(2) Receipts from sales of services rendered to install, maintain, service, or repair security apparatus and equipment exempt from taxation pursuant to the provisions of paragraph (1) of subsection a. of this section, and from sales of services rendered to install, maintain, service, or repair parts, supplies, and materials necessary to install, maintain, service, or repair security apparatus and equipment exempt from taxation pursuant to the provisions of paragraph (1) of subsection a. of this section, are exempt from the tax imposed by P.L.1966, c.30.
(3) Receipts from sales of intrastate, interstate, or international telecommunications services rendered to monitor or to control security apparatus and equipment exempt from taxation pursuant to the provisions of paragraph (1) of subsection a. of this section are exempt from the tax imposed by P.L.1966, c.30.
(4) Receipts from sales of security guard and patrol services and security systems services are exempt from the tax imposed by P.L.1966, c.30, if the services are used or consumed directly and exclusively to enhance the security of a property, or to enhance the security of a person on a property, that is certified as an asset that is critical to the infrastructure of this State by the Director of the Office of Homeland Security and Preparedness pursuant to the provisions of this section.
b. (1) A person who owns or leases or rents or otherwise holds, in trust, any property within this State and who considers that property to be an asset that is critical to the infrastructure of this State may make and file an application with the Director of the Office of Homeland Security and Preparedness to receive a certification from the Director of the Office of Homeland Security and Preparedness that the property is an asset that is critical to the infrastructure of this State.
(2) The application shall be made on forms provided by the Director of the Office of Homeland Security and Preparedness, and shall include such information and documentation as the Director of the Office of Homeland Security and Preparedness deems necessary and appropriate to review and evaluate an application made and filed by a person pursuant to the provisions of this subsection.
c. (1) The Director of the Office of Homeland Security and Preparedness shall conduct a review of each application made and filed by a person pursuant to the provisions of subsection b. of this section, and shall, within 60 days of the date an application is received, make a determination as to the issuance of a certification. (2) If the Director of the Office of Homeland Security and Preparedness conducts a review of an application and makes a determination to issue a certification, the Director of the Office of Homeland Security and Preparedness shall, within 30 days of the date the determination is made, provide written notification of the determination to the person who made and filed the application pursuant to the provisions of subsection b. of this section and to the Director of the Division of Taxation. The written notification of determination shall, at a minimum, specify the name and address of the person who made and filed the application pursuant to the provisions of subsection b. of this section, the date the application was received, the date the determination was made, and the property to which the certification that was issued applies.
(3) If the Director of the Office of Homeland Security and Preparedness conducts a review of an application and makes a determination to not issue a certification, the Director of the Office of Homeland Security and Preparedness shall, within 30 days of the date the determination is made, provide written notification of the determination to the person who made and filed the application pursuant to the provisions of subsection b. of this section. The written notification of determination shall, at a minimum, specify the date the application was received, the date the determination was made, and the reason the certification was not issued.
d. (1) The Director of the Division of Taxation shall conduct a review of each written notification of determination provided by the Director of the Office of Homeland Security and Preparedness pursuant to the provisions of paragraph (2) of subsection c. of this section, and shall, within 30 days of the date a written notification of determination is received, issue to the person to whom the written notification of determination applies a tax exemption authorization that may be used by the person to whom the tax exemption authorization is issued to make tax-exempt purchases of eligible property and services at the time and the place a purchase is made.
(2) The Director of the Division of Taxation shall, within 30 days of the date a tax exemption authorization is issued pursuant to the provisions of paragraph (1) of this subsection, transmit a copy of the tax exemption authorization so issued to the Director of the Office of Homeland Security and Preparedness.
e. Notwithstanding any other provision of law to the contrary, an application made and filed by a person pursuant to the provisions of subsection b. of this section, a written notification of determination provided by the Director of the Office of Homeland Security and Preparedness pursuant to the provisions of subsection c. of this section, and any other information or documentation related to an application or a written notification of determination, otherwise made or maintained or kept on file by the Director of the Office of Homeland Security pursuant to the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill), shall not be considered a public or government record under P.L.1963, c.73 (C.47:1A-1 et seq.) and P.L.2001, c.404 (C.47:1A-5 et al.).
f. Notwithstanding any other provision of law to the contrary, a tax exemption authorization issued by the Director of the Division of Taxation pursuant to subsection d. of this section, a copy of a tax exemption authorization transmitted by the Director of the Division of Taxation pursuant to subsection d. of this section, and any other information or documentation related to a tax exemption authorization or a copy of a tax exemption authorization, or otherwise made or maintained or kept on file by the Director of the Division of Taxation pursuant to the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill), shall be a record or file subject to the provisions of R.S.54:50-8 and R.S.54:50-9; provided however, that the furnishing of information or documentation by the Director of the Division of Taxation as a result of the issuance of a tax exemption authorization or the transmission of a copy of a tax exemption authorization pursuant to the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill) shall not be a violation of the provisions of R.S.54:50-8 and R.S.54:50-9.
g. For purposes of this section:
"Access control apparatus and equipment" means manual or electronic apparatus or equipment with a useful life exceeding one year which, alone or in conjunction with other apparatus and equipment acting together as a system, is capable of controlling access to or egress from property or a specific portion of property or otherwise providing notification of authorized entry into or onto or exit out of or off of property or a specific portion of property and which is designed in whole or in part to deter crime. Access control apparatus and equipment shall include but shall not be limited to access system controllers and extensions, modular controllers and panels, door and window contacts, access readers and keypads, identification cards, tags, and tokens, and battery backup units capable of providing electrical power to access control apparatus and equipment during a temporary cessation in the supply of electricity. Access control apparatus and equipment shall not include prewritten computer software necessary to maintain and operate access control apparatus and equipment;
"Audio and video surveillance apparatus and equipment" means manual or electronic apparatus or equipment with a useful life exceeding one year which, alone or in conjunction with other apparatus and equipment acting together as a system, enables the continuous or periodic monitoring or observing of persons or property and which is designed in whole or in part to deter crime. Audio and video surveillance apparatus and equipment shall include but shall not be limited to audio transponders, microphones, video cameras and lenses, enclosures, mounts, and casings, switching and control devices, and battery backup units capable of providing electrical power to audio and video surveillance apparatus and equipment during a temporary cessation in the supply of electricity. Audio and video surveillance apparatus and equipment shall not include prewritten computer software necessary to maintain and operate audio and video surveillance apparatus and equipment;
"Director of the Division of Taxation" means the Director of the Division of Taxation in the Department of the Treasury, or any officer, employee or agency of the Division of Taxation in the Department of the Treasury duly authorized by the Director of the Division of Taxation (directly, or indirectly by one or more redelegations of authority) to perform the functions mentioned or described by P.L. , c. (C. ) (pending before the Legislature as this bill);
"Director of the Office of Homeland Security and Preparedness" means the person appointed and serving as the Director of the Office of Homeland Security and Preparedness established in but not of the Department of Law and Public Safety in accordance with Executive Order No. 5 issued by Governor Jon S. Corzine on March 16, 2006;
"Intrusion detection alarm apparatus and equipment" means manual or electronic apparatus or equipment with a useful life exceeding one year which, alone or in conjunction with other apparatus and equipment acting together as a system, is capable of transmitting a signal indicating an alarm condition or otherwise providing notification of unauthorized entry into or onto or exit out of or off of property or a specific portion of property and which is designed in whole or in part to deter crime. Intrusion detection alarm apparatus and equipment shall include but shall not be limited to central alarm control panels and keypads, motion sensors and detectors, window and glass break alarms, audio and visual notification appliances, holdup alarms, and battery backup units capable of providing electrical power to intrusion detection alarm apparatus and equipment during a temporary cessation in the supply of electricity. Intrusion detection alarm apparatus and equipment shall not include prewritten computer software necessary to maintain and operate intrusion detection alarm apparatus and equipment;
"Perimeter protection apparatus and equipment" means manual or electronic apparatus or equipment with a useful life exceeding one year which, alone or in conjunction with other apparatus and equipment acting together as a system, is capable of hindering or prohibiting access to or egress from property or a specific portion of property or otherwise establishing a protective perimeter surrounding a property or a specific portion of property and which is designed in whole or in part to deter crime. Perimeter protection apparatus and equipment shall include but shall not be limited to fencing and electric fencing devices, gates and turnstiles, vehicular booms, bollards, and barriers, spotlights and floodlights, and battery backup units capable of providing electrical power to perimeter protection apparatus and equipment during a temporary cessation in the supply of electricity. Perimeter protection apparatus and equipment shall not include prewritten computer software necessary to maintain and operate perimeter protection apparatus and equipment;
"Prewritten computer software" means "prewritten computer software" as defined by section 15 of P.L.2005, c.126 (C.54:32B-8.56);
"Security apparatus and equipment" means access control apparatus and equipment, audio and video surveillance apparatus and equipment, intrusion detection alarm apparatus and equipment, perimeter protection apparatus and equipment, security monitoring and storage apparatus and equipment, and threat detection apparatus and equipment;
"Security monitoring and storage apparatus and equipment" means manual or electronic apparatus or equipment with a useful life exceeding one year which, alone or in conjunction with other apparatus and equipment acting together as a system, is capable of receiving, displaying, or recording data and information or sounds and images transmitted or captured by access control apparatus and equipment, audio and video surveillance apparatus and equipment, intrusion detection alarm apparatus and equipment, perimeter protection apparatus and equipment, and threat detection apparatus and equipment or otherwise providing for the storage of data and information or sounds and images transmitted or captured. Security monitoring and storage apparatus and equipment shall include but shall not be limited to computers, televisions, video or audio monitors, video cassette recorders, digital versatile disc players, compact disc players, videotapes, digital versatile discs, compact discs, computer disks or drives, and battery backup units capable of providing electrical power to security monitoring and storage apparatus and equipment during a temporary cessation in the supply of electricity. Security monitoring and storage apparatus and equipment shall not include prewritten computer software necessary to maintain and operate security monitoring and storage apparatus and equipment; and
"Threat detection apparatus and equipment" means manual or electronic apparatus or equipment with a useful life exceeding one year which, alone or in conjunction with other apparatus and equipment acting together as a system, is capable of detecting the presence or possession of a weapon, explosive device, or other unauthorized item or otherwise providing notification of the presence or possession of a weapon, explosive device, or other unauthorized item and which is designed in whole or in part to deter crime. Threat detection apparatus and equipment shall include but shall not be limited to x-ray inspection devices, body scanners, metal or explosives detectors, and battery backup units capable of providing electrical power to threat detection apparatus and equipment during a temporary cessation in the supply of electricity. Threat detection apparatus and equipment shall not include prewritten computer software necessary to maintain and operate threat detection apparatus and equipment.
2. This act shall take effect immediately and apply to sales made or services rendered on or after the first day of the sixth month next following the date of enactment.
STATEMENT
This bill provides an exemption from the imposition of the sales and use tax for the receipts from sales of certain security-related goods and services.
Under the bill, receipts from sales of the following goods and services are exempt from taxation:
· Security apparatus and equipment;
· Parts, supplies, and materials necessary to install, maintain, service, or repair security apparatus and equipment exempt from taxation as a result of the bill;
· Services rendered to install, maintain, service, or repair security apparatus and equipment exempt from taxation as a result of the bill;
· Services rendered to install, maintain, service, or repair any parts, supplies, and materials necessary to install, maintain, service, or repair security apparatus and equipment exempt from taxation as a result of the bill;
· Intrastate, interstate, or international telecommunications services rendered to monitor or to control security apparatus and equipment exempt from taxation as a result of the bill; and
· Security guard and patrol services and security systems services subject to taxation pursuant to N.J.S.A.54:32B-3(b)(11) and 54:32B-6(I).
The bill provides that the exemption from tax is limited to security-related goods and services used or consumed to enhance the security of certain property or persons. The bill specifies that in order to qualify for the exemption the security-related apparatus and equipment, parts, supplies, and materials and enumerated services rendered in connection with the apparatus and equipment, parts, supplies, and materials must be used or consumed directly and exclusively to enhance the security of a property, or to enhance the security of a person on a property, that is certified as an asset that is critical to the infrastructure of this State by the Director of the Office of Homeland Security and Preparedness.
The bill establishes a process through which persons who own or lease or rent or otherwise hold, in trust, any property within this State may receive a certification that the property is as an asset that is critical to the infrastructure of this State and, if authorized, obtain a tax exemption authorization from the Director of the Division of Taxation that may be used to claim the exemption at the time and place eligible purchases of goods and services are made. The bill specifies certain time frames within which certain documents related to the certification must be reviewed, provided, and issued, or transmitted, and specifies that documents related to the certification process are either (1) not public or government records or (2) confidential and privileged records and files of the Director of the Division of Taxation.
The purpose of the exemption provided by the bill is to defray a portion of costs associated with purchases of security-related goods and services. The tax imposed on sales of these goods and services has increased expenses borne by businesses in this State that are required to purchase taxable security-related goods and services to confront an array of security challenges in the post-September 11th marketplace.
