Bill Text: NJ A3884 | 2012-2013 | Regular Session | Introduced
Bill Title: Imposes gross receipts tax on retail sales of firearms ammunition and use tax on use of certain firearms ammunition; establishes "Gun Buyback Fund."
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2013-02-26 - Introduced, Referred to Assembly Law and Public Safety Committee [A3884 Detail]
Download: New_Jersey-2012-A3884-Introduced.html
Sponsored by:
Assemblyman JOSEPH CRYAN
District 20 (Union)
Assemblywoman ANNETTE QUIJANO
District 20 (Union)
SYNOPSIS
Imposes gross receipts tax on retail sales of firearms ammunition and use tax on use of certain firearms ammunition; establishes "Gun Buyback Fund."
CURRENT VERSION OF TEXT
As introduced.
An Act imposing a gross receipts tax on the retail sale of firearms ammunition in this State and a use tax on the use of certain firearms ammunition in this State for which a tax has not been paid and establishing the "Gun Buyback Fund," supplementing Title 54 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. (1) There is imposed on a person making retail sales of firearms ammunition a tax at the rate of 7% of the gross receipts from retail sales of firearms ammunition in this State.
(2) Gross receipts from retail sales of firearms ammunition in this State shall not include receipts from retail sales of firearms ammunition which the seller delivers to a common carrier for delivery outside this State, places in the United States mail or parcel post directed to the purchaser outside this State, or delivers to the purchaser outside this State by means of the seller's own delivery vehicles, and which is not returned to a point within this State, except in the course of interstate commerce.
b. (1) A person that receives firearms ammunition for use in this State other than from a person that paid the tax under subsection a. of this section is subject to tax at the rate imposed under subsection a. of this section, measured by the consideration given or contracted to be given for the firearms ammunition, including delivery charges if any, made by the seller but excluding any credit for property of the same kind accepted in part payment and intended for resale.
(2) The use of firearms ammunition in this State shall not be subject to the tax imposed pursuant to paragraph (1) of this subsection in respect of the use of firearms ammunition purchased by the user while a nonresident of this State and in respect of the use of firearms ammunition to the extent that a gross receipts, retail sales or use tax was legally due and paid thereon, without any right to a refund or credit thereof, to any other state or jurisdiction within any other state; provided however, that to the extent that the tax imposed by this section is at a higher rate than the rate of tax in the first taxing jurisdiction, or the rate in that first taxing jurisdiction reduced by the rate of an exemption taken on the use of that same firearms ammunition in this State claimed pursuant to subsection (6) of section 11 of P.L.1966, c.30 (C.54:32B-11), if any, then this exemption shall be inapplicable and the tax imposed by paragraph (1) of this subsection shall apply to the extent of the difference in those rates.
c. Gross receipts from retail sales of firearms ammunition in this State shall not include receipts from retail sales of firearms ammunition to the United States of America or any of its agencies and instrumentalities, or to this State, or any of its agencies, instrumentalities, public authorities, public corporations including a public corporation created pursuant to agreement or compact with another state, or political subdivisions. Consideration given or contracted to be given for the use of firearms ammunition in this State shall not include consideration given by to the United States of America or any of its agencies and instrumentalities, or to this State, or any of its agencies, instrumentalities, public authorities, public corporations including a public corporation created pursuant to agreement or compact with another state, or political subdivisions.
d. As used in this section:
"Firearm" means a weapon that expels a projectile with potentially lethal force via the action of an explosive or other form of combustion, which weapon is capable of being transported and fired by a person.
"Firearms ammunition" means self-contained cartridges or shotgun shells and their components sold for use in loading firearms ammunition, including but not limited to primers; bullets, shot, slugs, missiles or other projectiles; casings, shells and hulls; black powder, smokeless powder and other propellants; and other products incorporated in firearms cartridges and shells or used in muzzle loads, such as wads and sealants.
Other terms have the meaning given those terms pursuant to the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.).
e. The Director of the Division of Taxation shall collect and administer the tax imposed pursuant to this section. In carrying out the provisions of this section, the director shall have all of the powers and authority granted in P.L.1966, c.30 (C.54:32B-1 et seq.). The tax shall be reported and paid to the director on a quarterly basis in a manner prescribed by the Director of the Division of Taxation.
f. The tax imposed pursuant to this section shall be governed by the provisions of the State Uniform Tax Procedure Law, R.S.54:48-1 et seq.
g. (1) There is established in the Department of the Treasury a special fund to be known as the "Gun Buyback Fund."
(2) The State Treasurer shall deposit collections pursuant to this section into the "Gun Buyback Fund."
(3) The Legislature shall annually appropriate all funds deposited in the "Gun Buyback Fund" established pursuant to this subsection to the Office of the Attorney General in the Department of Law and Public Safety for gun buyback programs in New Jersey as determined by the Attorney General.
h. Notwithstanding any provision of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.) to the contrary, the director may adopt immediately upon filing with the Office of Administrative Law such regulations as the director deems necessary to implement the provisions of this act, which 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 the requirements of P.L.1968, c.410.
2. This act shall take effect immediately and apply to gross receipts from sales made on or after the first day of the first calendar quarter next following the date of enactment by at least 30 days.
STATEMENT
This bill imposes a seven percent gross receipts tax on the retail sale of firearms ammunition in this State and a seven percent use tax on the use of firearms ammunition in this State for which the gross receipts tax has not been paid. Sales to, and uses by, agencies of federal, State or local government are exempt from the taxes.
The firearms ammunition subject to tax is self-contained firearms cartridges or shotgun shells, and their components sold for use in loading firearms ammunition, like primers, casings, propellants and bullets and other products incorporated in firearms cartridges and shells or used in muzzle loads.
The bill establishes the "Gun Buyback Fund" as a special fund in the Department of the Treasury. The fund is the depository of all of the revenue collected pursuant to the firearms ammunition gross receipts tax. The bill directs the Legislature to annually appropriate all funds deposited in the "Gun Buyback Fund" to the Office of the Attorney General in the Department of Law and Public Safety for gun buyback programs in New Jersey.
