Bill Text: NJ A2721 | 2012-2013 | Regular Session | Introduced
Bill Title: Exempts certain materials and labor used to convert traditional motor vehicles into plug-in hybrid electric motor vehicles from sales and use tax.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2012-04-25 - Reviewed by the Sales Tax Review Commission Recommend to not enact [A2721 Detail]
Download: New_Jersey-2012-A2721-Introduced.html
Sponsored by:
Assemblyman TIMOTHY J. EUSTACE
District 38 (Bergen and Passaic)
SYNOPSIS
Exempts certain materials and labor used to convert traditional motor vehicles into plug-in hybrid electric motor vehicles from sales and use tax.
CURRENT VERSION OF TEXT
As introduced.
An Act exempting certain materials and labor used to convert traditional motor vehicles into plug-in hybrid electric motor vehicles from the sales and use tax, 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. Receipts from retail sales of batteries and electronic equipment used directly and exclusively in the conversion of a traditional motor vehicle into a plug-in hybrid electric motor vehicle are exempt from the tax imposed by the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.).
b. Receipts from sales of services used directly and exclusively in the conversion of a traditional motor vehicle into a plug-in hybrid electric motor vehicle are exempt from the tax imposed by the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.).
c. As used in this section, "plug-in hybrid electric motor vehicle" means a motor vehicle that meets the applicable federal motor vehicle safety standards with an internal combustion engine, and that (1) allows power to be delivered to the drive wheels by a battery-powered electric motor or other mechanical device; (2) has a battery or other mechanical storage device that can be plugged into an electrical outlet to recharge or be able to be recharged from the movement of the vehicle; and (3) has the ability to travel at least five miles powered substantially by electricity or by other forms of mechanical power other than an internal combustion engine.
d. The director, in consultation with the Commissioner of the Department of Environmental Protection, the Commissioner of the Department of Transportation, and the Chief Administrator of the New Jersey Motor Vehicle Commission, shall promulgate such rules and regulations, in accordance with the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), as may be necessary to effectuate the purposes of this section.
2. This act shall take effect immediately; provided however, that section 1 shall remain inoperative until the first day of the second calendar month beginning after the date of enactment.
STATEMENT
This bill provides a sales and use tax exemption for the materials and labor used to convert a traditional motor vehicle into a plug-in hybrid electric motor vehicle. Under the bill, the receipts from retail sales of batteries and electronic equipment as well as the receipts from sales of services used directly and exclusively in the conversion of a traditional motor vehicle into a plug-in hybrid electric motor vehicle are exempt from sales and use taxation.
The bill defines a plug-in hybrid electric motor vehicle as any motor vehicle that meets the applicable federal motor vehicle safety standards with an internal combustion engine, and that (1) allows power to be delivered to the drive wheels by a battery-powered electric motor or other mechanical device; (2) has a battery or other mechanical storage device that can be plugged into an electrical outlet to recharge or be able to be recharged from the movement of the vehicle; and (3) has the ability to travel at least five miles powered substantially by electricity or by other forms of mechanical power other than an internal combustion engine.
The bill authorizes the Director of the Division of Taxation in the Department of the Treasury, in consultation with the Commissioner of the Department of Environmental Protection, the Commissioner of the Department of Transportation, and the Chief Administrator of the New Jersey Motor Vehicle Commission, to promulgate rules and regulations.
The purpose of this bill is to provide New Jersey residents with an economic incentive to adopt modes of transportation that limit emissions and reduce dependency on fossil fuels, and to encourage automobile manufacturers to design and market motor vehicles capable of plug-in hybrid conversion.
