Bill Text: NJ S2847 | 2012-2013 | Regular Session | Introduced
Bill Title: Provides sales and use tax exemption for certain energy products and services used for consumption at certain manufacturing facilities.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2013-06-06 - Introduced in the Senate, Referred to Senate Environment and Energy Committee [S2847 Detail]
Download: New_Jersey-2012-S2847-Introduced.html
Sponsored by:
Senator JENNIFER BECK
District 11 (Monmouth)
SYNOPSIS
Provides sales and use tax exemption for certain energy products and services used for consumption at certain manufacturing facilities.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning sales of certain energy products used in manufacturing, and 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. a. Retail sales of fuel oil, natural gas, electricity, refrigeration, or steam service, of whatever nature, for use or consumption directly and exclusively in the production of tangible personal property, and natural gas, electricity, refrigeration, or steam service for sale by a manufacturing, processing, assembling, generating, refining, mining, or extracting facility, shall be exempt from the tax imposed on that facility pursuant to the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.) for a business that certifies that the fuel oil, natural gas, electricity, refrigeration, or steam service, as appropriate, is consumed exclusively at that facility.
b. A business that meets the requirements of subsection a. of this section may file an application for a sales tax exemption with the Director of the Division of Taxation in the Department of the Treasury. The director shall process the application within 20 business days of receipt thereof. An exemption for a business shall commence upon notice of approval of its application and shall expire for any year in which the business fails to meet the requirements of subsection a. of this section. Upon approval of its application, the director shall provide prompt notice to a business.
2. The Director of the Division of Taxation in the Department of the Treasury shall develop an application form, and shall adopt, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), rules and regulations to implement the provisions of this act.
3. Section 1 this act shall take effect on the first day of the second month next following the date of enactment, and the remainder of this act shall take effect immediately.
STATEMENT
This bill provides an exemption from the tax imposed pursuant to the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.) on retail sales of fuel oil, natural gas, electricity, refrigeration, or steam service, of whatever nature, for use or consumption directly and exclusively in the production of tangible personal property, and natural gas, electricity, refrigeration, or steam service for sale by a manufacturing, processing, assembling, generating, refining, mining, or extracting facility for a business that certifies that the fuel oil, natural gas, electricity, refrigeration, or steam service, as appropriate, is consumed exclusively at that facility. An application for the sales and use tax exemption may be submitted to the Director of the Division of Taxation in the Department of the Treasury on an application form developed by the director. The application is required to be processed within 20 business days of receipt thereof. Upon approval, the director is to provide prompt notice to a business.
This bill is based on a law in the State of New York that provides a state and local sales and use tax exemption, except within New York City, on these energy products and services at these manufacturing facilities.
