Bill Text: NJ S462 | 2010-2011 | Regular Session | Introduced
Bill Title: Provides exemption from tax on sales of certain energy saving products and services purchased from businesses located in UEZ.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2010-03-24 - Reviewed by the Sales Tax Review Commission Recommend to not enact [S462 Detail]
Download: New_Jersey-2010-S462-Introduced.html
STATE OF NEW JERSEY
214th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2010 SESSION
Sponsored by:
Senator BOB SMITH
District 17 (Middlesex and Somerset)
Senator RAYMOND J. LESNIAK
District 20 (Union)
SYNOPSIS
Provides exemption from tax on sales of certain energy saving products and services purchased from businesses located in UEZ.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel
An Act providing an exemption from the tax on sales of certain energy saving products and services purchased from businesses located in an urban enterprise zone, and supplementing Title 52 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. Notwithstanding the provisions of any law, rule, regulation, or order to the contrary, receipts of retail sales made by a vendor certified pursuant to section 21 of P.L.1983, c.303 (C.52:27H-80), from a place of business owned or leased and regularly operated by a vendor for the purpose of making retail sales, and located in a designated enterprise zone or in a designated UEZ-impacted business district, on products certified as compliant with the requirements of the "Energy Star" program established by the federal Department of Energy and United States Environmental Protection Agency pursuant to 42 U.S.C.s.6294a are exempt from the tax imposed under the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.) to the extent that the tax imposed on such receipts shall be two percent of the sales price.
b. The purchase of a service from a place of business owned or leased and regularly operated by a vendor in a designated enterprise zone established pursuant to the "New Jersey Urban Enterprise Zones Act," P.L.1983, c.303 (C.52:27H-60 et seq.), or a UEZ-impacted business district established pursuant to section 3 of P.L.2001, c.347 (C.52:27H-66.2) and certified by the Board of Public Utilities as providing a service or services which promote or employ alternative energy sources, energy efficiency, or environmental sustainability, including, but not limited to, the design and installation of alternative and renewable energy systems, energy auditing and assessments, and purchases and installation of equipment certified as compliant with the requirements of the "Energy Star" program established by the federal Department of Energy and United States Environmental Protection Agency pursuant to 42 U.S.C.s.6294a for any residential dwelling, building, or other structure are exempt from the tax imposed under the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.) to the extent that the tax imposed on the purchase of such services shall be two percent of the sales price.
c. The Director of the Division of Taxation in the Department of the Treasury, in consultation with the Board of Public Utilities, shall adopt, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), any rules and regulations necessary for the proper certification of any tax rate exemption pursuant to this section, the form of any certificate to be issued, and any other matter related to the exemption.
d. The Board of Public Utilities, in consultation with the Department of Environmental Protection, shall adopt, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), standards with respect to the services certified by the board as meeting the requirements for the tax rate exemption provided in subsection b. of this section.
e. For the purposes of this section, the following terms shall have the following meanings:
"Alternative and renewable energy systems" means systems of energy derived from a wind, solar, biomass, including biodiesel, or geothermal source; or hydrogen derived from biomass or water using an energy source described herein, which are utilized by a residential dwelling, building, or other structure subject to the tax exemption provided in this section.
"Environmental sustainability" means conduct involving the management or plan element of a residential dwelling, building, or other structure subject to the tax exemption provided in this section, which shall provide for, encourage, and promote the efficient use of natural resources and the installation and usage of renewable and alternative energy systems and consider the impact such structures have on the local, regional, and global environment.
2. This act shall take effect immediately and apply to sales tax imposed on and after the first day of the third month following enactment.
STATEMENT
This bill provides that receipts of retail sales made by a vendor certified pursuant to section 21 of P.L.1983, c.303 (C.52:27H-80), from a place of business owned or leased and regularly operated by a vendor for the purpose of making retail sales, and located in a designated enterprise zone or in a designated UEZ-impacted business district, on products certified as compliant with the requirements of the "Energy Star" program established by the federal Department of Energy and United States Environmental Protection Agency pursuant to 42 U.S.C.s.6294a are subject to a tax of two percent of the sales price.
Additionally, the bill provides that the purchase of a service from a vendor located in a designated enterprise zone or in a designated UEZ-impacted business district and certified by the Board of Public Utilities as providing a service or services which promote or employ alternative energy sources, energy efficiency, or environmental sustainability, including but not limited to, the design and installation of alternative and renewable energy systems, energy auditing and assessments, and purchases and installation of equipment certified as compliant with the requirements of the "Energy Star" program established by the federal Department of Energy and United States Environmental Protection Agency pursuant to 42 U.S.C.s.6294a for any residential dwelling, building, or other structure are subject to a tax of two percent of the sales price.
The term "alternative and renewable energy systems" refers to systems of energy derived from a wind, solar, biomass, including biodiesel, or geothermal sources; or hydrogen derived from biomass or water using an energy source described herein, that is utilized by a residential dwelling, building, or other structure subject to the tax exemption provided in this bill.
"Environmental sustainability" means conduct involving the management or plan element of a residential dwelling, building, or other structure subject to the tax exemption provided by the provisions of this bill, which shall provide for, encourage, and promote the efficient use of natural resources and the installation and usage of renewable and alternative energy systems and consider the impact such structures have on the local, regional, and global environment.
The bill would direct the Director of the Division of Taxation in the Department of the Treasury, in consultation with the Board of Public Utilities, to adopt any rules and regulations necessary for the proper certification of any tax rate exemption applied pursuant to the provisions of this bill.
Finally, the bill directs the Board of Public Utilities, in consultation with the Department of Environmental Protection, to adopt standards with respect to the services certified by the board as meeting the requirements for the tax rate exemption provided in the bill.
