Bill Text: NJ A992 | 2018-2019 | Regular Session | Introduced
Bill Title: Provides sales and use tax exemption for sales of natural gas, and charges for transportation or transmission of natural gas, to public colleges and universities.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2018-03-28 - Reviewed by the Sales Tax Review Commission Recommend to not enact [A992 Detail]
Download: New_Jersey-2018-A992-Introduced.html
STATE OF NEW JERSEY
218th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2018 SESSION
Sponsored by:
Assemblyman KEVIN J. ROONEY
District 40 (Bergen, Essex, Morris and Passaic)
SYNOPSIS
Provides sales and use tax exemption for sales of natural gas, and charges for transportation or transmission of natural gas, to public colleges and universities.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
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 public 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 from charges for the transportation or transmission of natural gas made or rendered to a public institution of higher education for that public institution's own use or consumption are exempt from the tax imposed by the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.), if the public institution of higher education is exempt from taxation pursuant to paragraph (1) of subsection (a) of section 9 of P.L.1966, c.30 (C.54:32B-9).
2. This act shall take effect immediately and apply to billing periods beginning on or after the first day of the third calendar month beginning after the date of enactment.
STATEMENT
This bill provides an exemption from the sales and use tax for sales of natural gas and charges for the transportation or transmission of natural gas which are made or rendered to public colleges and universities for their own use or consumption.
Under current law, colleges and universities that are organized and operated within this State are generally required to pay the sales and use tax determined to be due in connection with purchases of energy and utility service. This means that State public colleges and universities must pay tax on purchases of natural gas, and any associated charges for the transportation or transmission of natural gas, which are used to heat their buildings or provide power to their facilities.
The bill modifies this treatment of natural gas and the transportation or transmission of natural gas under current law so that public colleges and universities can make tax-free purchases of natural gas and tax-free purchases of the transportation or transmission of natural gas. The bill specifically limits the exemption to sales of natural gas and charges for the transportation or transmission of natural gas which are used or consumed by the public college or university that made the purchase.
The bill takes effect immediately and applies to billing periods beginning on or after the first day of the third calendar month beginning after the date of enactment.
The purpose of this bill is to reduce the cost of purchasing natural gas in an effort to reduce a portion of the overall cost associated with operating New Jersey's public colleges and universities.
