§2 - Note
An Act eliminating the use of the rebate procedure for claims of sales and use tax exemption made in connection with certain sales to certain Urban Enterprise Zone qualified businesses, amending P.L.1983, c.303.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 20 of P.L.1983, c.303 (C.52:27H-79) is amended to read as follows:
20. a. [Retail] Receipts from retail sales of tangible personal property (except motor vehicles and energy) and sales of services (except telecommunications services and utility services) to a qualified business for the exclusive use or consumption of such business within an enterprise zone are exempt from the taxes imposed under the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.).
b. [Notwithstanding the provisions of subsection a. of this section, the seller shall charge and collect from a purchaser that is not a small qualified business the tax at the rate then in effect, and the tax shall be refunded to the purchaser by the filing, within one year following the date of sale, of a claim with the New Jersey Division of Taxation for a refund of sales and use taxes paid for the goods and materials. Proof of claim for refund shall be made by the submission of auditable receipts and such other documentation as the Director of the Division of Taxation may require.] (Deleted by amendment, P.L. , c. ) (pending before the Legislature as this bill)
c. As used in this section:
"Qualified business" includes a [business that becomes] person who is certified as a qualified business by the [time the refund application] authority on or before the date a claim for refund is made and filed with the Director of the Division of Taxation in the Department of the Treasury pursuant to subsection [b.] e. of this section [; and
"Small qualified business" means a qualified business that has been determined and certified by the director to have had less than $10,000,000 in annual gross receipts in that business's prior annual tax period].
d. [The director shall submit to the Senate Legislative Oversight Committee and the Assembly Regulatory Oversight Committee any rules or regulations to effectuate amendments made to this section by P.L.2006, c.34 that are proposed for publication in the New Jersey Register. The director shall evaluate the effectiveness of the amendments made to this section by P.L.2006, c.34 and report any findings and recommendations regarding the amendments to the Senate Legislative Oversight Committee and the Assembly Regulatory Oversight Committee before the Governor presents a budget proposal for Fiscal Year 2008.] (Deleted by amendment, P.L. , c. ) (pending before the Legislature as this bill)
e. (1) Notwithstanding the provisions of section 20 of P.L.1966, c.30 (C.54:32B-20) and the provisions of R.S.54:49-14, the Director of the Division of Taxation in the Department of the Treasury shall refund to a person who is a qualified business the amount of any sales tax or any use tax paid by the person in connection with that person’s purchase of tangible personal property or services that is exempt, pursuant to subsection a. of this section, from the taxes imposed by P.L.1966, c.30 (C.54:32B-1 et seq.) if the person who is a qualified business makes and files a claim for refund with the director within one year of the date the payment of tax for purchase is made.
(2) A person who is a qualified business shall make and file a claim for refund on such forms, and accompanied by auditable receipts and such other documentation, as the director may prescribe.
(cf: P.L.2008, c.118, s.1)
2. This act shall take effect immediately; provided however, that section 1 shall remain inoperative until the first day of the first month next following the date of enactment.
Eliminates use of rebate procedure for claims of sales and use tax exemption made in connection with certain sales to certain UEZ qualified businesses.