SENATE, No. 142

 

STATE OF NEW JERSEY

 

Introduced Pending Technical Review by Legislative Counsel

 

PRE-FILED FOR INTRODUCTION IN THE 1996 SESSION

 

 

By Senator LYNCH

 

 

An Act exempting certain imprinting services performed on manufacturing equipment from the sales and use tax, supplementing P.L.1966, c.30.

 

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

 

    1. Receipts from the following services are exempt from the "Sales and Use Tax Act:" imprinting services performed on machinery, apparatus or equipment for use or consumption directly and primarily in the production of tangible personal property for sale by manufacturing, processing, assembling or refining and exempt from taxation pursuant to subsection a. of section 25 of P.L.1980, c.105 (C.54:32B-8.13).

 

    2. This act shall take effect immediately but section 1 shall remain inoperative until the first day of the second month following enactment.

 

 

STATEMENT

 

    This bill provides a sales tax exemption for imprinting services performed on production machinery. Currently, sales of machinery, apparatus and equipment used directly and primarily in the production of tangible personal property is exempt from the sales and use tax while sales of fabricating, processing, installation and maintenance services to that production machinery are taxable. This bill provides an exemption for of those currently taxable services, imprinting services. Imprinting services for production machinery are, for example, the engraving and etching services to printing machinery used in the production of patterned textiles and wall and floor coverings.


 

Exempts certain imprinting services on manufacturing equipment from sales and use tax.