Bill Text: NJ S2097 | 2016-2017 | Regular Session | Introduced
Bill Title: Provides sales and use tax exemption for purchases of certain replacement goods and services made by certain persons affected by natural disasters.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2016-05-02 - Introduced in the Senate, Referred to Senate Budget and Appropriations Committee [S2097 Detail]
Download: New_Jersey-2016-S2097-Introduced.html
Sponsored by:
Senator JEFF VAN DREW
District 1 (Atlantic, Cape May and Cumberland)
SYNOPSIS
Provides sales and use tax exemption for purchases of certain replacement goods and services made by certain persons affected by natural disasters.
CURRENT VERSION OF TEXT
As introduced.
An Act providing a sales and use tax exemption for purchases of certain replacement goods and services made by certain persons affected by natural disasters, 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. As used in P.L. , c. (C. ) (pending before the Legislature as this bill):
"Designated disaster area" means the county or counties in this State that are designated as a disaster area pursuant to a federal major disaster declaration.
"Eligible recovery period" means the period beginning on the date a federal major disaster declaration is issued for a natural disaster in this State and ending on the 360th day beginning thereafter.
"Natural disaster" means a natural disaster in this State that results in the issuance of a federal major disaster declaration.
2. Receipts from sales of motor vehicles that are made during an eligible recovery period to replace motor vehicles damaged, destroyed, or lost as a result of wind, flooding, or other storm conditions caused by or attributable to a natural disaster within a designated disaster area are exempt from the tax imposed pursuant to the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.).
3. Receipts from sales of repair and replacement parts that are made, and from charges for services that are rendered, during an eligible recovery period to repair motor vehicles damaged, destroyed, or lost as a result of wind, flooding, or other storm conditions caused by or attributable to a natural disaster within a designated disaster area are exempt from the tax imposed pursuant to the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.).
4. a. Notwithstanding the provisions of sections 2 and 3 of P.L., c. (C. ) (pending before the Legislature as this bill), the seller shall charge and collect the tax imposed pursuant to the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.), from the purchaser on eligible sales and charges at the rate then in effect, and the tax shall be refunded to the purchaser by the filing of a claim with the director within 360 days from the date of the payment thereof for a refund of the sales and use tax paid to replace or repair motor vehicles damaged, destroyed, or lost as a result of wind, flooding, or other storm conditions caused by or attributable to a natural disaster.
b. Proof of claim for refund shall be demonstrated by an approved Federal Emergency Management Agency application for disaster assistance, by insurance claim, or by such other information and documentation as the director shall determine to be necessary and appropriate to verify the tax paid on eligible sales and charges, to demonstrate the damage, destruction, or loss to the motor vehicle being replaced or repaired, and to substantiate where the damaged, destruction, or loss to the motor vehicle occurred.
c. Determination of the refund amount from sales of motor vehicles that are made to replace motor vehicles damaged, destroyed, or lost as a result of wind, flooding, or other storm conditions caused by or attributable to a natural disaster shall be based on the amount actually paid for the purchase of the replacement motor vehicle, net of any credit for property of the same kind traded-in, up to the average retail value of the motor vehicle being replaced, as reported in the current National Automobile Dealers Association Guide, or $2,000, whichever is greater.
5. Notwithstanding the provisions of the "Administrative Procedures 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 rules and regulations as the director determines to be necessary and appropriate to effectuate the purposes of P.L. , c. (C. ) (pending before the Legislature as this bill), which rules and regulations shall be effective for a period not to exceed 360 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 P.L.1968, c.410 (C.52:14B-1 et seq.).
6. This act shall take effect immediately and apply to sales made and services rendered during eligible recovery periods beginning on or after the date of enactment.
STATEMENT
The bill provides a sales and use tax exemption for purchases of certain replacement goods and services made by certain persons affected by natural disasters in this State that result in the issuance of a federal major disaster declaration.
Under the bill, the exemption from tax applies to sales of motor vehicles that are purchased to replace motor vehicles damaged, destroyed, or lost as a result of wind, flooding, or other storm conditions caused by or attributable to a natural disaster in those counties in this State that are designated as a disaster area by a federal major disaster declaration. The bill also exempts from tax sales of repair and replacement parts that are purchased, and charges for services that are rendered, to repair motor vehicles that are similarly damaged, destroyed, or lost as a result of a natural disaster.
The bill provides that exempt goods and services must be purchased or rendered during an eligible recovery period (i.e. within 360 days of the date a federal major disaster declaration is issued for a natural disaster in this State), and stipulates that purchasers of exempt goods and services must file a claim for refund with the Director of the Division of Taxation to receive the benefit of the exemption. Under the bill, claims for refund must be submitted within 360 days from the date the payment of tax is made, and must be accompanied by information and documentation to substantiate the claim.
The bill authorizes the director to adopt rules and regulations necessary to effectuate the purposes of the bill, and allows for the immediate filing of those rules and regulations with the Office of Administrative Law, effective for a period not to exceed 360 days following the bill's effective date.
The bill takes effect immediately and applies to sales made and services rendered during eligible recovery periods beginning on or after the date of enactment.
The purpose of this bill is to provide tax relief to persons affected by natural disasters in this State. The tax exemption provided by the bill will reduce the overall cost of purchasing the goods and services necessary to rebuild, and put more money back in the pockets of those most devastated by disasters.
