ASSEMBLY COMMITTEE SUBSTITUTE FOR

ASSEMBLY, Nos. 825 and 1929

STATE OF NEW JERSEY

ADOPTED MARCH 20, 1997

Sponsored by Assemblymen ARNONE, IMPREVEDUTO

and MORAN

An Act exempting certain motor vehicles from the New Jersey sales and use tax, and supplementing Title 54 of the Revised Statutes.

      Be It Enacted by the Senate and General Assembly of the State of New Jersey:

      1. Receipts from sales of motor vehicles certified to meet the ultra low emissions vehicle standards or the super ultra low emissions vehicle standards, as established by the California Air Resources Board in Title 13 of the California Code of Regulations, or as established by the United States Environmental Protection Agency, are exempt from the tax imposed under the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.). For the purposes of this section, "motor vehicle" includes all vehicles propelled otherwise than by muscular power, excepting such vehicles as run only upon rails or tracks and motorized bicycles, as defined pursuant to R.S.39:1-1.

      2. The Division of Taxation within the Department of the Treasury may adopt, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1, et seq.), any rules or regulations necessary for the implementation of this act.

      3. This act shall take effect January 1 next following enactment, and shall expire December 31 of the fourth calendar year following the calendar year in which the act takes effect; provided, however, that such expiration shall not affect the duty of any person required to collect the tax during the effective period of this act, and shall not adversely affect any actions taken by the director, pursuant to law, after the expiration date to ensure that taxes due and owing during the effective period of this act are collected and transmitted to the director.

Provides five-year sales and use tax exemption for vehicles that are certified to meet certain emissions standards.