SENATE, No. 2340

STATE OF NEW JERSEY

INTRODUCED DECEMBER 15, 1997

By Senators ZANE and McGREEVEY

An Act concerning the rate of taxation under the sales and use tax in certain counties and amending P.L.1993, c.373.

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

    1. Section 1 of P.L.1993, c.373 (C.54:32B- 8.45) is amended to read as follows:

    1. Receipts of retail sales, except retail sales of motor vehicles, of alcoholic beverages as defined in the "Alcoholic Beverage Tax Law," R.S.54:41-1 et seq., and cigarettes as defined in the "Cigarette Tax Act," P.L.1948, c.65 (C.54:40A-1 et seq.), made by a vendor from a place of business regularly operated by the vendor for the purpose of making retail sales at which items are regularly exhibited and offered for retail sale and which is not utilized primarily for the purpose of catalogue or mail order sales, a. in which county is situated an entrance to an interstate bridge or tunnel connecting New Jersey with a state that does not impose a retail sales and use tax or imposes a retail sales and use tax at a rate at least five percentage points lower than the rate in this State, and, b. in a county in which is not situated an entrance to an interstate bridge or tunnel connecting New Jersey with a state that does impose a retail sales and use tax, but is adjacent to a county in which is situated an entrance to an interstate bridge or tunnel connecting New Jersey with a state that does not impose a retail sales and use tax or imposes a retail sales and use tax at a rate at least five percentage points lower than the rate in this State are exempt to the extent of 50% of the tax imposed under the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.). The State Treasurer shall annually designate the county or counties in which this exemption shall apply.

(cf: P.L.1993, c.373)

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

STATEMENT

    This bill extends the provisions of P.L.1993, c.373 which provided a 50% exemption from the sales and use tax for certain transactions in counties that were connected by a bridge to a State in which sales tax is not charged. This bill will extend the exemption to a county which is adjacent to a county that was exempt under the 1993 law so long as the county is not connected by a bridge to a State that does impose the sales tax.

Provides a 50% exemption from the sales and use tax for certain transactions in certain counties.