Bill Text: NJ A1502 | 2014-2015 | Regular Session | Introduced
Bill Title: Provides sales and use tax rebate for certain purchases made by, or on behalf of, individuals and small businesses affected by natural disasters.
Spectrum: Slight Partisan Bill (Democrat 3-1)
Status: (Introduced - Dead) 2014-04-09 - Reviewed by the Sales Tax Review Commission Recommend to not enact [A1502 Detail]
Download: New_Jersey-2014-A1502-Introduced.html
STATE OF NEW JERSEY
216th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2014 SESSION
Sponsored by:
Assemblyman WAYNE P. DEANGELO
District 14 (Mercer and Middlesex)
Assemblyman TIMOTHY J. EUSTACE
District 38 (Bergen and Passaic)
Co-Sponsored by:
Assemblywoman Handlin
SYNOPSIS
Provides sales and use tax rebate for certain purchases made by, or on behalf of, individuals and small businesses affected by natural disasters.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel
An Act providing a rebate of the sales and use tax paid for certain purchases made by, or on behalf of, individuals and small businesses affected by natural disasters, supplementing P.L.1966, c.30 (C.54:32B-1 et seq.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. As used in P.L. , c. (C. ) (pending before the Legislature as this bill):
"Carpeting and other flooring" includes, but shall not be limited to, wall-to-wall carpeting, area rugs, linoleum, tile, hardwood, marble, and padding and other similar carpeting and other flooring underlayment;
"Construction equipment" means vehicles, machines, tools, implements, or other devices used or consumed in connection with the reconstruction, repair, or rehabilitation of a principal residence or small business, which vehicles, machines, tools, implements, or other devices are not incorporated into the principal residence or small business as a physical component part of the residence or business and which vehicles, machines, tools, implements, or other devices are not necessarily consumed in the performance of the reconstruction, repair, or rehabilitation;
"Construction materials" means items of tangible personal property used or consumed in connection with the reconstruction, repair, or rehabilitation of a principal residence or small business, which items are incorporated into the principal residence or small business as a physical component part of the residence or business;
"Construction supplies" means items of tangible personal property used or consumed in connection with the reconstruction, repair, or rehabilitation of a principal residence or small business, which items are not incorporated into the principal residence or small business as a physical component part of the residence or business;
"Consumer electronic devices" means mass market audio and video electronic devices and other similar brown goods, including computers, that are manufactured, in whole or in part, for entertainment purposes or to facilitate communication between or among two or more persons and that are intended to last for at least three years;
"Contractor" means an individual, partnership, corporation, or other commercial entity engaged in a business that is involved in the erection of structures for others, or building, or otherwise improving, altering, or repairing real property of others;
"Designated disaster area" means an area in this State that is: (1) deemed a major disaster area pursuant to a Presidential declaration, or (2) affected by a natural disaster during a State of emergency, as defined by section 23 of P.L.2011, c.19 (C.5:12-45.3);
"Disaster victim" means a person whose principal residence or small business is located in a designated disaster area and was damaged, destroyed, or lost as a result of wind, flooding, or other storm conditions caused by or attributable to a natural disaster;
"Durable domestic appliances" means mass market domestic appliances and other similar white goods that are manufactured, in whole or in part, to accomplish or assist in accomplishing common housekeeping tasks or domestic chores and that are intended to last for at least three years;
"Principal residence" means "principal residence" as defined by section 2 of P.L.1996, c.60 (C.54A:3A-16);
"Recovery period" means the period beginning on the date the natural disaster first occurs and ending one year following the end of the natural disaster period pursuant to the Presidential declaration of a major disaster area or the State of emergency; and
"Small business" means a business that is eligible to receive financial disaster assistance, as a small business, from the federal Small Business Administration; provided however, that a "small business" shall not include a business that derives its income exclusively from the rental of a vacation home or other similar real property that also is used for the personal use of the owner or operator of the small business for more than 14 days during the calendar year.
2. Receipts from sales of construction materials, construction supplies, and construction equipment that are made during the recovery period to a disaster victim, or to a contractor on behalf of a disaster victim, and that are used or consumed by the disaster victim, or a contractor on behalf of the disaster victim, to reconstruct, repair, or rehabilitate the disaster victim's principal residence or small business that is located in a designated disaster area and was damaged, destroyed, or lost as a result of wind, flooding, or other storm conditions caused by or attributable to a natural disaster, are exempt from the tax imposed pursuant to the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.).
3. Receipts from sales of services that are rendered during the recovery period to install, maintain, service, or repair construction materials, construction supplies, and construction equipment that are purchased during the recovery period by a disaster victim, or a contractor on behalf of a disaster victim, and that are used or consumed by the disaster victim, or a contractor on behalf of the disaster victim, to reconstruct, repair, or rehabilitate the disaster victim's principal residence or small business that is located in a designated disaster area and was damaged, destroyed, or lost as a result of wind, flooding, or other storm conditions caused by or attributable to a natural disaster, are exempt from the tax imposed pursuant to the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.).
4. Receipts from sales of carpeting and other flooring, heating and cooling systems, durable domestic appliances, and consumer electronic devices that are made during the recovery period to a disaster victim, or to a contractor on behalf of a disaster victim, and that are used or consumed by the disaster victim, or a contractor on behalf of the disaster victim, to replace carpeting and other flooring, heating and cooling systems, durable domestic appliances, and consumer electronic devices that were damaged, destroyed, or lost as a result of wind, flooding, or other storm conditions caused by or attributable to a natural disaster in a designated disaster area, are exempt from the tax imposed pursuant to the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.).
5. Receipts from sales of services that are rendered during the recovery period to install carpeting and other flooring, heating and cooling systems, durable domestic appliances, and consumer electronic devices that are purchased during the recovery period by a disaster victim, or a contractor on behalf of a disaster victim, and that are used or consumed by the disaster victim, or a contractor on behalf of the disaster victim, to replace carpeting and other flooring, heating and cooling systems, durable domestic appliances, and consumer electronic devices that were damaged, destroyed, or lost as a result of wind, flooding, or other storm conditions caused by or attributable to a natural disaster in a designated disaster area, are exempt from the tax imposed pursuant to the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.).
6. Receipts from sales of services that are rendered during the recovery period to maintain, service, or repair the carpeting and other flooring, heating and cooling systems, durable domestic appliances, and consumer electronic devices of a disaster victim that were damaged as a result of wind, flooding, or other storm conditions caused by or attributable to a natural disaster in a designated disaster area, are exempt from the tax imposed pursuant to the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.).
7. Receipts from sales of motor vehicles that are made during the recovery period to a disaster victim, and that are used or consumed by the disaster victim to replace a motor vehicle that is registered, or principally garaged, in this State and was damaged, destroyed, or lost as a result of wind, flooding, or other storm conditions caused by or attributable to a natural disaster in a designated disaster area, are exempt from the tax imposed pursuant to the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.).
8. Receipts from sales of services that are rendered during the recovery period to maintain, service, or repair a motor vehicle of a disaster victim that is registered, or principally garaged, in this State and was damaged as a result of wind, flooding, or other storm conditions caused by or attributable to a natural disaster in a designated disaster area, are exempt from the tax imposed pursuant to the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.).
9. a. Notwithstanding the provisions of sections 2 through 8 of P.L. , c. (C. ) (pending before the Legislature as this bill), the seller shall charge and collect the tax imposed pursuant to the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.) from the purchaser on eligible sales of tangible personal property and services at the rate then in effect, and the tax shall be returned as a rebate to the disaster victim by the filing of a claim with the director within 180 days following the end of the recovery period for a rebate of the sales and use tax paid.
b. The filing of a claim for a rebate of the sales and use tax paid in accordance with this section shall be made by the disaster victim on forms furnished by the director, and shall be accompanied by an approved Federal Emergency Management Agency application for disaster assistance, by insurance claim, or by such information and documentation as may be determined to be necessary by the director to verify the tax paid on eligible sales, to confirm the location of the disaster victim's principal residence or small business or to confirm the place where the disaster victim's motor vehicle is registered or principally garaged, and to demonstrate the damage, destruction, or loss as a result of the wind, flooding, or other storm conditions caused by or attributable to a natural disaster in a designated disaster area.
c. The director shall review or cause to be reviewed each complete claim filed by a disaster victim for a rebate of the sales and use tax paid in accordance with this section, and shall determine or cause to be determined the amount to be returned as a rebate for the sales and use tax paid in connection with eligible purchases of tangible personal property and services based on the tax separately stated on the sales slip, invoice, receipt, or other statement or memorandum given to the purchaser at the time of purchase; provided however, that the director shall determine the amount to be returned as a rebate for the tax paid in connection with eligible purchases of construction materials, construction supplies, construction equipment, carpeting and other flooring, heating and cooling systems, durable domestic appliances, and consumer electronic devices made by a contractor on behalf of a disaster victim based upon the separately stated cost of the materials, supplies, equipment, carpeting and other flooring, systems, appliances, and devices to the disaster victim, or, if the cost for the materials, supplies, equipment, carpeting and other flooring, systems, appliances, and devices is not separately stated on the contract, bill, or invoice given to the disaster victim by the contractor, the amount to be returned as a rebate shall be based on 50 percent of the total amount of the sales price paid; provided further, that the director shall determine the amount to be returned as a rebate for the tax paid in connection with eligible purchases of motor vehicles based on the amount actually paid for the motor vehicle, net of any credit for property of the same kind traded-in, up to the average retail value of the motor vehicle damaged, destroyed, or lost as a result of wind, flooding, or other storm conditions caused by or attributable to a natural disaster in a designated disaster area, as reported in the current National Automobile Dealers Association Guide, or $2,000, whichever is greater.
d. The director shall return or cause to be returned to each disaster victim that has filed a complete claim for a rebate of the sales and use tax paid in accordance with this section the amount determined to be returned as a rebate within 180 days of the date the complete claim is filed.
e. The director shall pay or cause to be paid to a disaster victim interest on any amount determined to be returned as a rebate that is not returned within 180 days of the date the complete claim is filed, as is allowed and paid on overpayments of tax pursuant to section 7 of P.L.1992, c.175 (C.54:49-15.1).
10. Notwithstanding the provisions of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.) to the contrary, the director may adopt immediately upon filing with the Office of Administrative Law such rules and regulations as the director determines to be necessary and appropriate to effectuate the purposes of P.L. , c. (C. ) (pending before the Legislature as this bill), which rules and regulations shall be effective for a period not to exceed 180 days following the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill) and may thereafter be amended, adopted, or readopted by the director in accordance with P.L.1968, c.410 (C.52:14B-1 et seq.)
11. This act shall take effect immediately and apply retroactively to sales made and services rendered on or after October 28, 2012.
STATEMENT
This bill provides a permanent rebate of the sales and use tax paid for certain purchases of taxable goods and services made by, or on behalf of, (1) an individual or small business affected by Hurricane Sandy, and (2) an individual or small business that will be affected by a future natural disaster in a designated disaster area.
Under the bill, receipts from sales of goods and services to install, maintain, service, or repair goods that were damaged, destroyed, or lost due to a natural disaster in a designated disaster area in this State are eligible for a rebate during the recovery period. Receipts from sales of such goods and services are eligible for a rebate whether the sales are made to disaster victims or to contractors on behalf of disaster victims. The following goods and services thereof are eligible for a rebate under the bill:
-- construction materials, construction supplies, and construction equipment;
-- carpeting and other flooring, heating and cooling systems, durable domestic appliances, and consumer electronic devices; and
-- motor vehicles that are used or consumed to replace a motor vehicle of a disaster victim that is registered or principally garaged in this State.
The bill provides that to receive the benefit of the tax rebate disaster victims affected by a natural disaster and contractors making purchases on behalf of disaster victims must pay the applicable tax at the current rates in effect on purchases of eligible goods and services at the point of purchase. The bill specifies that disaster victims must then file a claim with the Director of the Division of Taxation in the Department of the Treasury for a rebate of the sales and use taxes paid.
The bill provides that claims for rebate filed with the director must be made on forms furnished by the director, and must be accompanied by an approved Federal Emergency Management Agency application for disaster assistance, by insurance claim, or by such information and documentation as may be determined to be necessary by the director to verify the tax paid, to confirm the location of the disaster victim's principal residence or small business or to confirm the registration or place where the disaster victim's motor vehicle is principally garaged, and to demonstrate the damage, destruction, or loss caused by or attributable to a natural disaster in a designated disaster area.
The bill requires the director to review each complete claim filed by a disaster victim, and to determine the rebate amount for each complete claim. The bill provides that the director's determination will be based on the tax separately stated on the sales slip, invoice, receipt, or other statement or memorandum given to the purchaser at the time of purchase, but specifies certain rules that apply to purchases made by contractors on behalf of disaster victims and certain rules that apply to purchases of motor vehicles.
The bill requires the director to return the amount of any rebate of sales and use tax paid to the disaster victim within 180 days of the date the complete claim is filed. The bill requires the director to pay interest on rebates not returned to disaster victims within that frame of time.
The bill takes effect immediately and applies retroactively to sales made and services rendered on or after October 28, 2012.
The purpose of this bill is to provide tax relief to individuals and small businesses affected by Hurricane Sandy and future natural disasters. The tax rebate will reduce the overall cost of purchasing the goods and services necessary to rebuild following the destruction and put more money back in the pockets of those devastated by Hurricane Sandy and future natural disasters.
