SENATE, No. 595

STATE OF NEW JERSEY

215th LEGISLATURE

 

PRE-FILED FOR INTRODUCTION IN THE 2012 SESSION

 


 

Sponsored by:

Senator  JENNIFER BECK

District 11 (Monmouth)

Senator  ROBERT M. GORDON

District 38 (Bergen and Passaic)

 

 

 

 

SYNOPSIS

     Exempts from sales tax for two years certain 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 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  motor vehicle capable of attaining average fuel economy of at least 40 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 motor vehicle capable of attaining average fuel economy of at least 40 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 the sales price. 

     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.

 

     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 Energy Star program administered by the United States Environmental Protection Agency in collaboration with the United States Department of Energy and established pursuant to 42 U.S.C. s.6294a.

 

     3.    The Department of Environmental Protection, in consultation with the Department of the Treasury, shall prepare and submit a report to the Governor and both Houses of the Legislature, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), within three months after the expiration of the exemption from the tax imposed under the “Sales and Use Tax Act,” pursuant to sections 1 and 2 of this act.  The report shall include any findings and conclusions concerning the effectiveness of the program and shall make recommendations regarding the continuation or permanent expiration of the exemption, and may propose changes if appropriate.  Copies of the report shall be posted on the Internet websites of the Department of Environmental Protection and the Department of the Treasury.

 

     4.    This act shall take effect on the 90th 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 a motor vehicle capable of attaining an average fuel economy of at least 40 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 those vehicles for 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 the sales price.

     The bill would also 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 federal Energy Star program is administered by the Environmental Protection Agency in collaboration with the Department of Energy.