Bill Text: NJ A2014 | 2020-2021 | Regular Session | Introduced
Bill Title: Provides gross income tax deduction for certain donated vehicles.
Spectrum: Slight Partisan Bill (Republican 3-1)
Status: (Introduced - Dead) 2020-01-14 - Introduced, Referred to Assembly Appropriations Committee [A2014 Detail]
Download: New_Jersey-2020-A2014-Introduced.html
STATE OF NEW JERSEY
219th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2020 SESSION
Sponsored by:
Assemblyman JON M. BRAMNICK
District 21 (Morris, Somerset and Union)
Assemblyman EDWARD H. THOMSON
District 30 (Monmouth and Ocean)
SYNOPSIS
Provides gross income tax deduction for certain donated vehicles.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act providing a gross income tax deduction for certain donated vehicles, supplementing Title 54A of the New Jersey Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. A taxpayer shall be allowed to deduct from gross income the value of a qualified vehicle that the taxpayer donates to a State or local law enforcement agency for the taxable year in which the donation occurs. The value of the qualified vehicle is the fair market value of the vehicle on the day the donation occurs. A taxpayer shall attach to the return an independent appraisal of the fair market value of the qualified vehicle to claim a deduction in an amount greater than $500 pursuant to this section.
b. A State or local law enforcement agency that accepts the donation of a qualified vehicle shall provide the taxpayer written acknowledgment that includes the name of the taxpayer; the make, model, and year of the vehicle; the vehicle or other identification number; and, if the value of the vehicle is greater than $500, the fair market value of the vehicle based on an independent appraisal provided by the taxpayer.
c. The deduction of the fair market value of the donation of a qualified vehicle pursuant to this section shall not reduce the taxable income of the taxpayer below zero.
d. Nothing in this section shall be construed to require a State or local law enforcement agency to accept any vehicle offered as a donation.
e. For the purposes of this section:
"Qualified vehicle" means any motor vehicle manufactured primarily for use on public streets, roads, and highways; a boat; or an airplane. A vehicle held primarily for sale to customers, such as inventory of a vehicle dealer, is not a qualified vehicle.
"State or local law enforcement agency" means and includes, but is not limited to, the police department of a State agency; the State Department of Corrections; the State Police; the Office of the Attorney General of New Jersey; a county or municipal police department or force in this State; a county corrections department or a county sheriff's office in this State; and the office of a prosecutor of a county or a municipality in this State.
2. This act shall take
effect immediately and apply to taxable years beginning on or after the January
1 next following enactment.
STATEMENT
This bill allows a taxpayer to deduct from gross income the fair market value of a qualified vehicle that the taxpayer donates to a State or local law enforcement agency in the taxable year.
A State or local law enforcement agency that accepts the donation of a qualified vehicle shall provide the taxpayer written acknowledgment that includes the name of the taxpayer; the make, model, and year of the vehicle; the vehicle or other identification number; and, if the value of the vehicle is greater than $500, the fair market value of the vehicle based on an independent appraisal provided by the taxpayer.
Under the bill, a State or local law enforcement agency is not required to accept any vehicle offered as a donation.
