ASSEMBLY TRANSPORTATION AND COMMUNICATIONS COMMITTEE

STATEMENT TO

ASSEMBLY, No. 2470

with committee amendments

STATE OF NEW JERSEY

DATED: MARCH 3, 1997

      The Assembly Transportation and Communications Committee reports favorably Assembly Bill No. 2470 with committee amendments.

      This amended bill would expand the current sales and use tax exemption for sales of aircraft and aircraft repair service. Currently, aircraft sold to regulated commercial carriers, and the repairs to such aircraft, are exempt. This bill exempts the charges for services to maintain, service or repair any aircraft if the services are performed at an airport facility in the State. These services include, but are not limited to, producing, fabricating, processing, printing or imprinting tangible personal property at that facility.

      The committee amended the bill to expand the exemption to services performed at any airport facility in the State rather than exempting only services performed at airport facilities funded by lease financing under the powers of the South Jersey Transportation Authority as originally provided in the bill.