Bill Text: NJ A5841 | 2022-2023 | Regular Session | Introduced
Bill Title: Provides for reduced sales tax imposition for retail sales by certain small businesses.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Introduced - Dead) 2023-12-07 - Introduced, Referred to Assembly Commerce and Economic Development Committee [A5841 Detail]
Download: New_Jersey-2022-A5841-Introduced.html
Sponsored by:
Assemblywoman VICTORIA A. FLYNN
District 13 (Monmouth)
SYNOPSIS
Provides for reduced sales tax imposition for retail sales by certain small businesses.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the rate of taxation under the sales and use tax for retail sales by certain small businesses, 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 of retail sales of tangible personal property made by a seller that is a small business enterprise from a place of business regularly operated by the seller for the purpose of making retail sales at which items are regularly exhibited and offered for retail sale and which is not utilized primarily for the purpose of catalogue or mail order sales, are exempt to the extent of 50% of the tax imposed under the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.). This section shall not apply to retail sales of motor vehicles, of alcoholic beverages, of specified digital products, and cigarettes as defined in the "Cigarette Tax Act," P.L.1948, c.65 (C.54:40A-1 et seq.), and retail sales made by a qualified business in an Urban Enterprise Zone or made at a reduced tax rate pursuant to section 1 of P.L.1993, c.373 (C.54:32B-8.45).
b. As used in this section "small business enterprise" means a business that has its principal place of business in this State, is independently owned and operated, and employs the equivalent of fewer than 50 full-time employees.
2. 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 regulations as the director deems necessary to implement the provisions of section 1 of P.L. . c. (C. ) (pending before the Legislature as this bill) and to maintain compliance with the Streamlined Sales and Use Tax Agreement, which regulations shall be effective for a period not to exceed 180 days from the date of the filing. The regulations may therefore be amended, adopted, or readopted by the director as the director deems necessary in accordance with P.L.1968, c.410.
3. This act shall take effect on the first day of the third month next following the date of enactment.
STATEMENT
This bill reduces the State sales tax rate in half on retail sales of tangible personal property made by a seller that is a small business enterprise in this State. By allowing small businesses to charge half of the state's sales tax rate of 6.625%, or roughly 3.3%, this bill will attract customers to small businesses in New Jersey. The bill will also encourage organic growth and assist hard working New Jersey small business owners who compete with large corporate big box stores.
The reduced sales tax rate will apply to businesses that have their principal place of business in this State, are independently owned and operated, and employ the equivalent of fewer than 50 full-time employees. The reduced will not apply to retail sales of motor vehicles, of alcoholic beverages, of specified digital products, and cigarettes and retail sales already subject to a reduced rate made by a qualified business in an Urban Enterprise Zone, and made at a reduced tax rate applied since August, 1994, in Salem County.
