[First Reprint]

ASSEMBLY, No. 167

STATE OF NEW JERSEY

PRE-FILED FOR INTRODUCTION IN THE 1996 SESSION

By Assemblymen GIBSON and ZECKER

An Act providing a sales and use tax exemption for certain pollution or waste control equipment, machinery or apparatus 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 sales of equipment, machinery or apparatus used directly and exclusively for ¹[the source reduction,] pollution prevention or the¹ control or elimination of air or water pollution or of solid or hazardous waste are exempt from the tax imposed under the "Sales and Use Tax Act," if:

    (1) The purchaser generates air or water pollution or solid or hazardous waste within this State as a by-product of a manufacturing, industrial, commercial or agricultural process or service and purchases the equipment, machinery or apparatus for installation and use at the manufacturing, industrial, commercial or agricultural facility; and

    (2) The purchaser is required to purchase, install and use the equipment, machinery or apparatus by the federal Environmental Protection Agency pursuant to a federal law or regulation, or by the State Department of Environmental Protection pursuant to a State law or regulation.

    This exemption shall not apply to tools or supplies used in connection with the equipment, machinery or apparatus described in this subsection.

    b. As used in this act:

    "Air pollution" means any release or emission of any air contaminant into the atmosphere of this State as defined pursuant to the "Air Pollution Control Act," P.L.1954, c.212 (C.26:2C:-1 et seq.).

    "Hazardous waste" means any solid waste defined as hazardous waste by the Department of Environmental Protection pursuant to the "Solid Waste Management Act," P.L.1970, c.39 (C.13:1E-1 et seq).

    ¹"Pollution prevention" means pollution prevention as defined in section 3 of P.L.1991, c.235 (C.13:1D-37).¹

    "Solid waste" means any garbage, refuse or other discarded materials as defined pursuant to the "Solid Waste Management Act," P.L. ¹[1979] 1970¹, c.39 (C.13:1E-1 et seq.).

    ¹["Source reduction, control or elimination of air or water pollution or of solid or hazardous waste" means the reduction, control or elimination of air or water pollution or solid or hazardous waste generated by a manufacturing, industrial, commercial or agricultural facility at the source, usually within the industrial process, and achieved through the implementation of certain types of treatment processes, process modifications, feedstock substitutions or improvements in feedstock purity, alterations in housekeeping or management practices, recycling within the industrial process or the utilization of more efficient machinery, equipment or apparatus.]¹

    "Water pollution" means any discharge of any pollutant or toxic pollutant into any waters of the State as defined pursuant to the "Water Pollution Control Act," P.L.1977, c.74 (C.58:10A-1 et seq.).

    c. The director, in conjunction with the Commissioner of ¹[the Department of]¹ Environmental Protection, shall ¹[promulgate] adopt rules and¹ regulations pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), to specifically identify, or to provide guidelines for the identification of, the equipment, machinery or apparatus ¹[which] that¹ may qualify for the exemption from taxation permitted by this act. In addition, the director shall ¹[promulgate] adopt¹ such other ¹rules and¹ regulations as are deemed necessary and appropriate for the efficient and effective administration of this act.

    2. This act shall take effect on the ¹[first day of the seventh month] 180th day¹ after enactment and shall apply to sales made after the effective date.

Exempts from sales and use tax equipment, machinery or apparatus used for pollution prevention or the control or elimination of air or water pollution or solid or hazardous waste.