SENATE, No. 756

STATE OF NEW JERSEY

214th LEGISLATURE

 

PRE-FILED FOR INTRODUCTION IN THE 2010 SESSION

 


 

Sponsored by:

Senator  JENNIFER BECK

District 12 (Mercer and Monmouth)

Senator  ROBERT M. GORDON

District 38 (Bergen)

 

 

 

 

SYNOPSIS

     Exempts from sales tax for two years certain hybrid and highly fuel efficient vehicles and energy efficient appliances.

 

CURRENT VERSION OF TEXT

     Introduced Pending Technical Review by Legislative Counsel

  


An Act exempting from the sales and use tax certain hybrid vehicles, highly fuel efficient vehicles, and energy efficient appliances, 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 from the retail sale of a hybrid vehicle, and any motor vehicle capable of attaining average fuel economy of at least 35 miles per gallon, with sales price of $40,000 or less, shall be exempt from the tax imposed under the “Sales and Use Tax Act,” P.L.1966, c.30 (C.54:32B-1 et seq.).  Receipts from the retail sale of any hybrid vehicle and any motor vehicle capable of attaining average fuel economy of at least 35 miles per gallon, with sales price greater than $40,000, shall be exempt from the tax imposed under the “Sales and Use Tax Act” only for the first $40,000 of such sales price.  Notwithstanding the provisions of this subsection, receipts from the sale of any motor vehicle that uses diesel fuel shall not be exempt from the tax imposed under the “Sales and Use Tax Act.

     b.    The State Treasurer, in consultation with the Department of Environmental Protection, the Department of Transportation, and the New Jersey Motor Vehicle Commission, shall adopt any rules and regulations necessary to implement this section.

     c.     As used in this section,  “average fuel economy” means the average of the city and highway miles per gallon estimates provided by automobile manufacturers and printed on the fuel economy label affixed to a window on the motor vehicle, pursuant to section 600.306-86 of title 40, Code of Federal Regulations, which shall be calculated by the seller.  “Hybrid vehicle” means a motor vehicle propelled by both an internal combustion engine and an energy storage device which regenerates energy captured from braking.

 

     2.    a. Receipts from the retail sale of any qualified product bearing the Energy Star label shall be exempt from the tax imposed under the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.).

     b.    For the purposes of this section, "Energy Star label" means the label granted to certain products that meet the energy efficiency criteria of the federal Environmental Protection Agency Energy Star program administered in collaboration with the federal Department of Energy and established pursuant to 42 U.S.C. s.6249a.

 

     3.    This act shall take effect on the 60th day after the date of enactment and shall expire two years after the effective date.


STATEMENT

 

     This bill would exempt for two years the retail sale of hybrid vehicles, and any motor vehicles capable of attaining an average fuel economy of at least 35 miles per gallon, of which the sales price is $40,000 or less, from the tax imposed under the “Sales and Use Tax Act,” P.L.1966, c.30 (C.54:32B-1 et seq.).  The bill exempts the retail sale of such vehicles of which the sales price is greater than $40,000 from the tax imposed under the “Sales and Use Tax Act” only for the first $40,000 of such sales price.  However, any vehicle that uses diesel fuel would be excluded from this sales and use tax exemption.  The purpose of the bill is to provide an incentive for New Jersey drivers to purchase, and auto manufacturers to market, fuel efficient vehicles.

     This bill would exempt for two years the retail sale of qualified products bearing the federal Energy Star label from the tax imposed under the “Sales and Use Tax Act”.  The purpose of the bill is to provide an incentive for those who purchase energy efficient products that meet the energy efficiency criteria of the federal Environmental Protection Agency Energy Star program administered in collaboration with the federal Department of Energy and established pursuant to 42 U.S.C. s.6249a.