ASSEMBLY ENVIRONMENT, SCIENCE AND TECHNOLOGY COMMITTEE

STATEMENT TO

ASSEMBLY, No. 167

with committee amendments

STATE OF NEW JERSEY

DATED: MAY 20, 1996

      The Assembly Environment, Science and Technology Committee favorably reports Assembly Bill No. 167 with committee amendments.

      The bill exempts from the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.), certain pollution or waste control equipment, machinery or apparatus.

      Under this bill, the sale of equipment, machinery or apparatus used directly and exclusively for pollution prevention or the control or elimination of air or water pollution or of solid or hazardous waste would be exempt from the sales tax and the compensating use tax. This exemption would apply only if the purchaser generates air or water pollution or solid or hazardous waste within the 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 only if the equipment, machinery or apparatus is required 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.

      The committee amended the bill to replace the term "source reduction" with the term "pollution prevention" as defined elsewhere in State law. The committee also made technical amendments to the bill.

      This bill was pre-filed for introduction in the 1996-1997 session pending technical review. As reported, the bill includes the changes required by technical review, which has been performed.