Senator STEPHEN M. SWEENEY
District 3 (Salem, Cumberland and Gloucester)
Senator THOMAS H. KEAN, JR.
District 21 (Essex, Morris, Somerset and Union)
Provides energy and utility service sales tax relief benefit to certain manufacturers throughout the State.
CURRENT VERSION OF TEXT
An Act concerning sales of energy and utility service and amending P.L.1993, c.373.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 1 of P.L.1993, c.373 (C.54:32B-8.45) is amended to read as follows:
1. a. Receipts of retail sales, except retail sales of motor vehicles, of alcoholic beverages, of digital products, and cigarettes as defined in the "Cigarette Tax Act," P.L.1948, c.65 (C.54:40A-1 et seq.), made by a seller from a place of business 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 utilized primarily for the purpose of catalogue or mail order sales, in which county is situated an entrance to an interstate bridge or tunnel connecting New Jersey with a state that does not impose a retail sales and use tax or imposes a retail sales and use tax at a rate at least five percentage points lower than the rate in this State, are exempt to the extent of 50% of the tax imposed under the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.).
b. The exemption provided by subsection a. of this section shall apply unless a seller advises the director, in writing, that it intends to collect the tax at the full rate imposed under the "Sales and Use Tax Act".
c. (1) Retail sales of energy and utility service to a business facility that certifies that it employs at least 50 people at that facility, at least 50% of whom are directly employed in a manufacturing process, and provided that the energy and utility services are consumed exclusively at that facility, are exempt to the extent of 50% of the tax imposed under the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.).
(2) A business facility that meets the requirements of paragraph (1) of this subsection may file an application for the energy and utility service sales tax exemption with the Executive Director of the New Jersey Economic Development Authority, who shall promulgate regulations and forms for that purpose. The Executive Director of the New Jersey Economic Development Authority shall process an application submitted under this paragraph within 20 business days of receipt thereof. An exemption shall commence for a business upon notice of approval of its application and shall expire for any year in which the business fails to meet the requirements of paragraph (1) of this subsection. Upon approval, the Executive Director of the New Jersey Economic Development Authority shall provide prompt notice to the applicant and also shall provide prompt notice to the President of the Board of Public Utilities and to the Director of the Division of Taxation in the Department of the Treasury. The Executive Director of the New Jersey Economic Development Authority also shall provide the president and the director with an annual list of all businesses that have been approved under this subsection.
(cf: P.L.2006, c.44, s.11)
2. This act shall take effect immediately.
This bill is intended to provide business facilities that manufacture products anywhere in the State, with an energy and utility service sales tax relief benefit similar to that provided to certain manufacturers located within an urban enterprise zone under section 23 of P.L.2004, c.65 (C.52:27H-87.1). The energy and utility service sales tax relief benefit is intended to encourage the growth, or at least stabilization of the manufacturing sector in New Jersey. This benefit is intended to help attract new manufacturing businesses that might otherwise locate in a state with a lower tax on energy and utility service sales. To qualify for an energy and utility service sales tax exemption a business would have to employ at least 50 persons, at least 50% of whom are directly employed in a manufacturing process on site.