Bill Text: NJ A249 | 2010-2011 | Regular Session | Introduced
Bill Title: Provides sales and use tax exemption for certain purchases made by certain flood victims.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2010-03-24 - Reviewed by the Sales Tax Review Commission Recommend to enact [A249 Detail]
Download: New_Jersey-2010-A249-Introduced.html
STATE OF NEW JERSEY
214th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2010 SESSION
Sponsored by:
Assemblywoman CHARLOTTE VANDERVALK
District 39 (Bergen)
SYNOPSIS
Provides sales and use tax exemption for certain purchases made by certain flood victims.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel
An Act providing an exemption from the sales and use tax for certain purchases made by certain flood victims, 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. Receipts from sales of replacement appliances, heating and cooling systems, home repair materials, and household goods made during the recovery period by flood victims residing in disaster areas are exempt from the tax imposed under the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.).
b. Receipts for services to install, replace, or repair appliances, heating and cooling systems, home repair materials, and household goods rendered during the recovery period by flood victims residing in disaster areas are exempt from the tax imposed under the "Sales and Use Tax Act."
c. Receipts from sales made and for services rendered during the recovery period to replace or repair motor vehicles damaged by flood waters within the disaster areas are exempt from the tax imposed under the "Sales and Use Tax Act."
d. Notwithstanding the provisions of subsections a., b., and c. of this section, the vendor shall charge and collect from the purchaser on such sales and charges at the rate then in effect, and the tax shall be refunded to the purchaser upon the filing of a claim with the New Jersey Division of Taxation on or before March 31, 2008. Claims filed with the division after March 31, 2008 shall not be refunded.
e. (1) Except for motor vehicles owned by individuals who reside outside the disaster areas discussed in paragraph (2) of this subsection, proof of claim for refund of sales taxes paid to replace or service items damaged or destroyed by flood waters shall be demonstrated by: (a) an approved Federal Emergency Management Agency application for disaster assistance; (b) an insurance claim; or (c) such information or documentation deemed necessary by the director, including but not limited to proof of tax paid.
(2) Proof of claim for refund of a motor vehicle damaged by flood waters within the disaster areas but owned by individuals who reside outside the disaster areas shall be demonstrated by: (a) insurance claim; or (b) such information or documentation deemed necessary by the director.
(3) Notwithstanding the provisions of the "Administrative Procedure Act" (C.52:14B-1 et seq.) to the contrary, the director may adopt, immediately upon filing with the Office of Administrative Law, such regulations, including but not limited to terms and conditions governing application for and payment of refunds, as the director deems necessary to implement the provisions of this section, which regulations shall be effective for a period not to exceed 180 days from the date of filing. Such regulations may thereafter be amended, adopted, or readopted by the director as the director deems necessary in accordance with the requirements of the "Administrative Procedure Act." The director shall, after receipt of appropriate forms and supporting documentation, refund the sales and use taxes paid by residents of the State.
f. (1) Determination of the refund amount from sales of home repair materials exempted by subsection a. of this section shall be based on the separately stated cost of the materials to the customer, or, if the cost for those materials is not separately stated on the customer's contract, bill, or invoice by the contractor, the exemption shall be based on thirty-five percent of the total amount of the sales price.
(2) Determination of the refund amount for sales of motor vehicles exempted by subsection c. of this section shall be based on the amount actually paid for the replacement motor vehicle, net of any credit for property of the same kind traded-in, up to the average retail value of the vehicle being replaced, as reported in the current National Automobile Dealers Association Guide, or $2,000, whichever amount is greater.
g. For the purposes of this section:
"Disaster areas" means counties eligible to receive federal disaster aid pursuant to the President's major disaster declaration for New Jersey issued on April 26, 2007 and amended on April 29, 2007.
"Recovery period" means April 14, 2007 through December 31, 2007.
2. This act shall take effect immediately and apply retroactively to sales and services made or rendered on or after April 14, 2007.
STATEMENT
This bill establishes a sales and use tax exemption for flood victims whose homes and businesses were damaged or destroyed by the severe storms and flooding that inundated the State during the week of April 14-20, 2007. In establishing an exemption, this bill creates a rebate process through which residents of disaster areas can apply for a refund of the taxes paid on purchases of goods and services to replace or repair appliances, heating and cooling systems, home repair materials, household goods, and motor vehicles damaged or destroyed as a result of the storm.
Similar to legislation enacted in the wake of Tropical Storm Floyd in September of 1999, this bill limits the sales and use tax exemptions to the specific counties enumerated in the President's disaster declaration for New Jersey, which was issued on April 26, 2007 and amended on April 29, 2007. This bill makes the sales and use tax exemption retroactive to purchases made and services rendered on or after April 14, 2007, with the exemption remaining in effect through the end of calendar year 2007. Proper documentation of the flood loss, as prescribed by the Director of the Division of Taxation, must accompany all requests for refunds. Under the bill, refund requests must be submitted to the Division of Taxation no later than March 31, 2008.
Along with high winds and record setting rainfall, the Nor'easter that swept through the State during the third week of April caused some of the State's worst flooding since Tropical Storm Floyd. In towns and cities along the Pompton and Passaic, Rockaway and Rahway, as well as the Delaware and Raritan Rivers, flood waters created a state of emergency by knocking out power, disabling transportation networks, and forcing thousands of residents to evacuate their homes. In addition to the loss of personal valuables and merchandise, the storm caused an estimated $180 million worth of damage. While the initial estimate is expected to rise as property owners and tenants return to pickup the pieces, this bill provides residents with a refund to help rebuild what remains. Beyond simply providing a tax rebate for the purchase of replacement drywall and lumber, subpumps and furnaces, this bill defrays a portion of the overall cost of rebuilding homes and businesses, neighborhoods and communities.
