Bill Text: NJ A3419 | 2010-2011 | Regular Session | Introduced
Bill Title: Provides sales and use tax exemption for natural gas, and transportation or transmission of natural gas, to certain colleges and universities.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2010-11-08 - Reported and Referred to Assembly Appropriations Committee [A3419 Detail]
Download: New_Jersey-2010-A3419-Introduced.html
Sponsored by:
Assemblywoman PAMELA R. LAMPITT
District 6 (Camden)
SYNOPSIS
Provides sales and use tax exemption for natural gas, and transportation or transmission of natural gas, to certain colleges and universities.
CURRENT VERSION OF TEXT
As introduced.
An Act providing a sales and use tax exemption for sales of natural gas, and charges for the transportation or transmission of natural gas, to certain colleges and universities, 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. Receipts from sales of natural gas and charges for the transportation or transmission of natural gas made or rendered to a college or university for that college's or university's own use or consumption are exempt from the tax imposed under the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.), if the college or university is exempt from taxation pursuant to paragraph (1) of subsection (b) of section 9 of P.L.1966, c.30 (C.54:32B-9) and has complied with subsection (d) of that section.
2. This act shall take effect immediately and apply to billing periods beginning on or after the first day of the third month next following the date of enactment.
STATEMENT
This bill provides a sales and use tax exemption for sales of natural gas, and any associated charges for the transportation or transmission of natural gas, to colleges or universities for their own use or consumption. The exemption is, under the bill, limited to sales and charges made or rendered to colleges or universities that have applied, and have been certified, for sales tax-exempt status by the Division of Taxation in the Department of the Treasury.
Under current law, colleges and universities that have applied, and have been certified, for sales tax-exempt status by the Division of Taxation may generally purchase taxable good and services without paying sales or use tax if the goods and services are purchased for that college's or university's exclusive use. However, current law also provides certain exceptions to the general exemption granted to tax-exempt organizations. The law provides, in particular, that colleges and universities, and certain other certified charitable non-profit organizations, must pay tax on purchases of energy and utility services, regardless of their tax-exempt status or how their purchase is ultimately used. They are, therefore, not exempt from tax on purchases of natural gas or the transportation or transmission of natural gas used to heat their buildings and facilities.
The exemption provided by this bill modifies the current energy and utility exception to the sales and use tax exemption for tax-exempt organizations so that colleges and universities can make tax-free purchases of natural gas and any associated charges for the transportation or transmission of natural gas. Under the exemption, colleges and universities must be certified as tax-exempt to qualify for the exemption, and must purchase the natural gas and those services rendered in connection with the transportation or transmission of that gas for their own exclusive use or consumption.
The purpose of the exemption is to reduce expenses related to purchases of natural gas in an effort to offset a portion of the overall costs associated with operating New Jersey's public and private junior and senior colleges and universities during the current economic decline.
