Bill Text: NJ S2141 | 2022-2023 | Regular Session | Introduced
Bill Title: Establishes annual sales tax holiday during first weekend of August for certain retail sales of computers, school computer supplies, school supplies, school art supplies, and school instructional materials.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2022-03-07 - Introduced in the Senate, Referred to Senate Education Committee [S2141 Detail]
Download: New_Jersey-2022-S2141-Introduced.html
Sponsored by:
Senator FRED H. MADDEN, JR.
District 4 (Camden and Gloucester)
SYNOPSIS
Establishes annual sales tax holiday during first weekend of August for certain retail sales of computers, school computer supplies, school supplies, school art supplies, and school instructional materials.
CURRENT VERSION OF TEXT
As introduced.
An Act establishing an annual temporary exemption period under the sales and use tax for certain retail sales of school supplies and equipment, 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 from retail sales of the following products 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 products are sold to an individual purchaser for non-business use during the annual exemption period:
(1) computers with a sales price of less than $1,000 per item;
(2) school computer supplies with a sales price of less than $1,000 per item;
(3) school supplies;
(4) school art supplies; and
(5) school instructional materials.
b. For purposes of this section,
"Annual exemption period" means the period of time between 12:01 a.m. on the first Friday in August of each year and 11:59 p.m. the following Sunday;
"Computers" means electronic devices that accept information in digital or similar form and manipulate it for a result based on a sequence of instructions;
"Electronic" means relating to technology having electrical, digital magnetic, wireless, optical, electromagnetic, or similar capabilities;
"School art supplies" means items commonly used by a student in a course of study for artwork, and shall include: clay and glazes; paints, including acrylic, tempora, and oil; paintbrushes used for artwork; and watercolors;
"School computer supplies" means items commonly used by a student in a course of study in which a computer is used, and shall include: computer storage media, diskettes, and compact disks; handheld electronic schedulers, except devices that are cellular phones; personal digital assistants, except devices that are cellular phones; computer printers; and printer supplies for computers, printer paper, and printer ink;
"School instructional materials" means written materials commonly used by a student in a course of study as a reference and to learn the subject being taught, and shall include: reference books; reference maps and globes; textbooks; and workbooks; and
"School supplies" means items commonly used by a student in a course of study, and shall include: binders; book bags; calculators; cellophane tape; blackboard chalk; compasses; composition books; crayons; erasers; folders, including expandable folders, pocket folders, plastic folders, and manila folders; glue, paste, and paste sticks; highlighters; index cards; index card boxes; legal pads; lunch boxes; markers; notebooks; paper, including loose leaf ruled notebook paper, copy paper, graph paper, tracing paper, manila paper, colored paper, poster board, and construction paper; pencil boxes and other school supply boxes; pencil sharpeners; pencils; pens; protractors; rulers; scissors; and writing tablets.
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 thereafter 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 immediately.
STATEMENT
This bill establishes an annual "back-to-school" sales tax holiday in the State of New Jersey during the first full weekend in August. During the three day period from the first Friday through the following Sunday of each year, certain retail sales of school supplies and equipment sold to an individual purchaser for non-business use are exempt from the sales and use tax.
Under the bill, tax exempt school supplies and equipment during the holiday include: (1) school supplies, such as pens and pencils, notebooks and binders; (2) school art supplies, such as paints and paintbrushes, clay and glazes; and (3) school instructional materials, such as maps, globes, reference books, and workbooks. For purposes of the bill, tax exempt school supplies and equipment also include: (4) computers, and (5) school computer supplies, such as computer storage equipment, printers, and personal digital assistants, with a sales price of less than $1,000 per item. Retail sales of computers and school computer supplies with a sales price greater than or equal to $1,000 remain subject to tax during the holiday.
The establishment of a "back-to-school" sales tax holiday is intended to provide a temporary tax reprieve during the period of time when the State's school aged children, college students, adult learners, and their families prepare to face the challenges of the upcoming school year. Regardless of whether the purchase involves a new book bag for a first time preschooler, husky pencils and construction paper for a grade school student, or a new laptop for a returning college student, the substitute permits consumers to purchase essential school supplies and equipment without the additional expense of the State's sales and use tax.
Additionally, the "back-to-school" sales tax holiday is intended to serve as an economic stimulus for the State's retail and small business community. The temporary suspension of the sales and use tax on certain school supplies and equipment each August has the potential to encourage consumer spending when demand is typically soft.
Since New York established a sales tax holiday in 1997, many other states have created similar temporary exemption periods of equal or extended duration for similar goods and services. According to the Federation of Tax Administrators, 15 states provided "back-to-school" tax holidays during August of 2009. Barring any delays, repeals, or additions, this bill will make New Jersey the 16th state to provide a tax holiday for back-to-school shoppers.
