Bill Text: NJ A3111 | 2014-2015 | Regular Session | Introduced
Bill Title: Provides partial sales tax exemption for energy and utility service to certain manufacturers.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2014-05-08 - Introduced, Referred to Assembly Commerce and Economic Development Committee [A3111 Detail]
Download: New_Jersey-2014-A3111-Introduced.html
Sponsored by:
Assemblyman SAMUEL L. FIOCCHI
District 1 (Atlantic, Cape May and Cumberland)
Assemblyman ANTHONY M. BUCCO
District 25 (Morris and Somerset)
Assemblyman GORDON M. JOHNSON
District 37 (Bergen)
SYNOPSIS
Provides partial sales tax exemption for energy and utility service to certain manufacturers.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning sales of energy and utility service, 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 energy and utility service to a business facility are exempt to the extent of 50 percent of the tax imposed under the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.) for a business that certifies:
(1) at least 50 people are employed at the facility;
(2) at least 50 percent of those employed at the facility are directly employed in a manufacturing process; and
(3) the energy and utility services are consumed exclusively at that facility.
b. A business facility that meets the requirements of paragraphs (1), (2), and (3) of subsection a. of this section may file an application for the energy and utility service sales tax exemption with the Executive Director of the New Jersey Economic Development Authority. The Executive Director of the New Jersey Economic Development Authority shall process the application within 20 business days of receipt thereof. An exemption shall commence for a business upon notice of approval of its application and shall expire for any year in which the business fails to meet the requirements of paragraphs (1), (2), or (3) of subsection a. of this section. Upon approval of the application, the Executive Director of the New Jersey Economic Development Authority shall provide prompt notice to the applicant, the Director of the Division of Taxation in the Department of the Treasury, and the President of the Board of Public Utilities. The Executive Director of the New Jersey Economic Development Authority annually shall provide the director and the president with a list of all businesses that have been approved for the exemption pursuant to this section.
2. The Executive Director of the New Jersey Economic Development Authority 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 of 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 of 50 percent of 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 energy and utility service to a business that certifies that at least 50 people are employed at the facility, at least 50 percent of those employed at the facility are directly employed in a manufacturing process, and the energy and utility services are consumed exclusively at that facility. Applications for the sales and use tax exemption are to be submitted to the Executive Director of the New Jersey Economic Development Authority. The application is to be processed within 20 business days of receipt thereof. Upon approval, the Executive Director is to provide notice thereof to the applicant, the President of the Board of Public Utilities, and the Director of the Division of Taxation in the Department of the Treasury.
