New Jersey-2012-A3065-Introduced

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 Hurricane Sandy, 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;

"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;

"Motor vehicle" includes all vehicles propelled otherwise than by muscular power (excepting such vehicles as run only upon rails or tracks), trailers, semitrailers, house trailers, or any other type of vehicle drawn by a motor-driven vehicle, and motorcycles, designed for operation on the public highways;

"Principal residence" means "principal residence" as that term is defined by section 2 of P.L.1996, c.60 (C.54A:3-16) for purposes of claiming the gross income tax deduction for property taxes allowed in accordance with the "Property Tax Deduction Act," P.L.1996, c.60 (C.54A:3-15 et seq.);

"Recovery period" means the period on or after October 30, 2012 but before January 1, 2014;

"Small business" means a business that is eligible to receive financial disaster assistance, as a small business, from the United States 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; and

"Storm victim" means a person whose principal residence or small business is located in this State and was damaged, destroyed, or lost as a result of wind, flooding, or other storm conditions caused by or attributable to Hurricane Sandy.

2. Receipts from sales of construction materials, construction supplies, and construction equipment that are made during the recovery period to a storm victim, or to a contractor on behalf of a storm victim, and that are used or consumed by the storm victim, or a contractor on behalf of the storm victim, to reconstruct, repair, or rehabilitate the storm victim's principal residence or small business that is located in this State and was damaged, destroyed, or lost as a result of wind, flooding, or other storm conditions caused by or attributable to Hurricane Sandy 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 storm victim, or a contractor on behalf of a storm victim, and that are used or consumed by the storm victim, or a contractor on behalf of the storm victim, to reconstruct, repair, or rehabilitate the storm victim's principal residence or small business that is located in this State and was damaged, destroyed, or lost as a result of wind, flooding, or other storm conditions caused by or attributable to Hurricane Sandy 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 storm victim, or to a contractor on behalf of a storm victim, and that are used or consumed by the storm victim, or a contractor on behalf of the storm 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 Hurricane Sandy, 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 storm victim, or a contractor on behalf of a storm victim, and that are used or consumed by the storm victim, or a contractor on behalf of the storm 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 Hurricane Sandy, 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 storm victim that were damaged as a result of wind, flooding, or other storm conditions caused by or attributable to Hurricane Sandy 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 storm victim, and that are used or consumed by the storm 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 Hurricane Sandy, 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 storm 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 Hurricane Sandy 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," 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 storm victim by the filing of a claim, on or after the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill) but before July 1, 2014, with the Director of the Division of Taxation in the Department of the Treasury 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 storm 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 storm victim's principal residence or small business or to confirm the registration or place where the storm victim's motor vehicle is 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 Hurricane Sandy.

c. The director shall review or cause to be reviewed each complete claim filed by a storm 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 storm victim based upon the separately stated cost of the materials, supplies, equipment, carpeting and other flooring, systems, appliances, and devices to the storm 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 storm victim by the contractor, the amount to be returned as a rebate shall be based on fifty 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 Hurricane Sandy, 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 storm 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 six months of the date the complete claim is filed.

e. The director shall pay or cause to be paid to a storm victim interest on any amount determined to be returned as a rebate that is not returned within six months 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 of the Division of Taxation in the Department of the Treasury 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.

STATEMENT

This bill provides a rebate of the sales and use tax paid for certain purchases of taxable goods and services made by, or on behalf of, storm victims, including individuals and small businesses, affected by Hurricane Sandy.

Under the bill, receipts from sales of the following goods made to storm victims, or to contractors on behalf of storms victims, during the recovery period (on or after October 30, 2012 but before January 1, 2014) are eligible for the rebate:

-- construction materials, construction supplies, and construction equipment that are used or consumed to reconstruct, repair, or rehabilitate a storm victim's principal residence or small business that is located in this State and was damaged, destroyed, or lost as a result of wind, flooding, or other storm conditions caused by or attributable to Hurricane Sandy;

-- carpeting and other flooring, heating and cooling systems, durable domestic appliances, and consumer electronic devices used or consumed to replace carpeting and other flooring, heating and cooling systems, durable domestic appliances, and consumer electronic devices of a storm victim that were damaged, destroyed, or lost as a result of wind, flooding, or other storm conditions caused by or attributable to Hurricane Sandy; and

-- motor vehicles that are used or consumed to replace a motor vehicle of a storm victim 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 Hurricane Sandy.

The bill provides that the tax rebate similarly applies to the receipts from sales of the following services rendered during the recovery period (on or after October 30, 2012 but before January 1, 2014):

-- services to install, maintain, service, or repair construction materials, construction supplies, and construction equipment that are used or consumed to reconstruct, repair, or rehabilitate a storm victim's principal residence or small business that is located in this State and was damaged, destroyed, or lost as a result of wind, flooding, or other storm conditions caused by or attributable to Hurricane Sandy;

-- services to install carpeting and other flooring, heating and cooling systems, durable domestic appliances, and consumer electronic devices that are used or consumed to replace carpeting and other flooring, heating and cooling systems, durable domestic appliances, and consumer electronic devices of a storm victim that were damaged, destroyed, or lost as a result of wind, flooding, or other storm conditions caused by or attributable to Hurricane Sandy;

-- services to maintain, service, or repair the carpeting and other flooring, heating and cooling systems, durable domestic appliances, and consumer electronic devices of a storm victim that were damaged as a result of wind, flooding, or other storm conditions caused by or attributable to Hurricane Sandy; and

-- services to maintain, service, or repair a motor vehicle of a storm 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 Hurricane Sandy.

The bill provides that to receive the benefit of the tax rebate storm victims affected by Hurricane Sandy and contractors making purchases on behalf of storm 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 storm 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 a limited window for storm victims affected by Hurricane Sandy to file a claim for rebate of the sales and use tax paid. The bill specifies that claims for rebate must be filed with the director on or after the effective date of the bill but before July 1, 2014.

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 storm victim's principal residence or small business or to confirm the registration or place where the storm victim's motor vehicle is principally garaged, and to demonstrate the damage, destruction, or loss caused by or attributable to Hurricane Sandy.

The bill requires the director to review each complete claim filed by a storm victim affected by Hurricane Sandy, 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 storm 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 storm victim affected by Hurricane Sandy within six months of the date the complete claim is filed. The bill requires the director to pay interest on rebates not returned to storm victims within that frame of time.

The bill authorizes the director to adopt rules and regulations to effectuate the purposes of the bill, and permits the immediate filing of those rules and regulations with the Office of Administrative Law, effective for a period not to exceed 180 days following the bill's effective date.

The bill takes effect immediately.

The purpose of this bill is to provide tax relief to individuals and small businesses affected by Hurricane Sandy. The tax rebate provided by the bill 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 the storm.