Bill Text: NJ S3941 | 2018-2019 | Regular Session | Introduced
Bill Title: Provides sales tax reduction on certain sales made in municipalities located within Highlands Region Preservation Area.
Spectrum: Partisan Bill (Republican 3-0)
Status: (Introduced - Dead) 2019-06-13 - Introduced in the Senate, Referred to Senate Environment and Energy Committee [S3941 Detail]
Download: New_Jersey-2018-S3941-Introduced.html
Sponsored by:
Senator STEVEN V. OROHO
District 24 (Morris, Sussex and Warren)
Senator JOSEPH PENNACCHIO
District 26 (Essex, Morris and Passaic)
SYNOPSIS
Provides sales tax reduction on certain sales made in municipalities located within Highlands Region Preservation Area.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the rate of taxation under sales and use tax in municipalities located within Highlands Region Preservation Area, and 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. Receipts of qualified retail sales made by a seller from a place of business located in a municipality that is wholly or partially located within the preservation area of the Highlands Region, as described in subsection b. of section 7 of P.L.2004, c.120 (C.13:20-7), are exempt to the extent of 50 percent of the tax imposed under the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.).
b. As used in this section:
"Place of business" means a store regularly operated by the seller for the purpose of making retail sales at which items are regularly exhibited and offered for retail sale, and which is not used primarily for the purpose of catalogue or mail order sales.
"Qualified retail sales" includes all retail sales except for the retail sale of motor vehicles, alcoholic beverages, specified digital products, and cigarettes as defined in the "Cigarette Tax Act," P.L.1948, c.65 (C.54:40A-1 et seq.).
2. This act shall take effect on the first day of the fourth month next following the date of enactment.
STATEMENT
This bill provides a 50 percent sales tax reduction for certain retail sales made in a municipality that is wholly or partially located within the Highlands Region Preservation Area.
In an effort to protect the supply of drinking water and preserve existing open space, the State enacted the "Highlands Water Protection and Planning Act," P.L.2004, c.120 (C.13:20-1 et al.), which established the Highlands Region Preservation Area. The law also created the Highlands Water Protection and Planning Council and required the council to adopt a regional master plan restricting the use of land in the preservation area. Thereafter, each municipality located within the preservation area was required to amend its municipal master plan and development regulations to comply with the regional master plan. Consequently, the enactment of the law has limited the economic prospects of certain affected municipalities.
According to information acquired from the Department of Environmental Protection's website, 52 municipalities are wholly or partially located within the Highlands Region Preservation Area as of July 13, 2018. The bill provides that all retail sales made within those municipalities, except for the retail sale of motor vehicles, alcoholic beverages, digital products, and cigarettes, would be subject to the 50 percent sales tax reduction. In doing so, the sponsor of the bill intends to stimulate economic activity in municipalities that may experience economic stagnation as a result of the "Highlands Water Protection and Planning Act.
