ASSEMBLY, No. 2397

STATE OF NEW JERSEY

INTRODUCED OCTOBER 7, 1996

By Assemblymen GIBSON, KAVANAUGH and Asselta

An Act exempting sales of certain footwear components from the sales and use tax, amending P.L.1980, c.105.

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

    1. Section 16 of P.L.1980, c.105 (C.54:32B-8.4) is amended to read as follows:

    16. Receipts from sales of articles of clothing and footwear for human use except articles made of fur on the hide or pelt of an animal or animals where such fur is the component material of chief value of the article are exempt from the tax imposed under the Sales and Use Tax Act. "Clothing" and "footwear" as used in this section [shall] also [mean and include sales] means items sold to noncommercial purchasers of common wearing apparel materials intended to be incorporated into wearing apparel as a constituent part thereof, such as fabrics, thread, knitting yarn, buttons [and], zippers and component replacement parts of shoes, not limited to soles and heels, normally repaired or replaced by shoemakers or shoe repairers. The director shall prescribe regulations to carry out the provisions of this section.

(cf: P. L.1980, c. 105, s. 16)

    2. This act shall take effect on the first day of the third month following enactment.

STATEMENT

    This bill provides for an exemption concerning equity for receipts from sales of clothing and footwear for human use. Clarification is needed in the statutes for the component parts of shoes, such as soles and heels, which are repaired, replaced or serviced by shoemakers or shoe repairers. The shoemakers or shoe repairers have been paying sales tax on their purchases of these parts, which in fact are used in performing a personal service exempt from the sales and use tax. Tailors and seamstresses do not pay sales taxes on their purchases of clothing components, such as fabric, thread, buttons and zippers.

Exempts certain purchases of footwear components from sales and use tax.