ASSEMBLY APPROPRIATIONS COMMITTEE

STATEMENT TO

ASSEMBLY, No. 2859

STATE OF NEW JERSEY

DATED: JUNE 9, 1997

      The Assembly Apprropriations Committee reports favorably Assembly Bill No. 2859.

      Assembly Bill No. 2859 provides a New Jersey sales and use tax exemption for coin-operated car washes. The bill defines a coin operated car wash as one at which the customer cleans the car, without help from the car wash operator or the operator's employees, using money to activate timer-controlled cleaning appliances.

FISCAL IMPACT:

       No data are available for precisely estimating the fiscal impact of the bill. Available data indicate that the total receipts of the car wash industry in New Jersey are between $115 million and $150 million annually, for an estimated total sales tax revenue of between $7 million and $9 million annually; however, the percentage of that revenue derived from coin-operated car washes is not known.