Bill Text: NJ S3022 | 2016-2017 | Regular Session | Introduced
Bill Title: Exempts from sales and use taxation purchase of fire sprinkler systems installed in residential new construction.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2017-02-27 - Introduced in the Senate, Referred to Senate Budget and Appropriations Committee [S3022 Detail]
Download: New_Jersey-2016-S3022-Introduced.html
Sponsored by:
Senator LINDA R. GREENSTEIN
District 14 (Mercer and Middlesex)
SYNOPSIS
Exempts from sales and use taxation purchase of fire sprinkler systems installed in residential new construction.
CURRENT VERSION OF TEXT
As introduced.
An Act providing an exemption from sales and use tax for the purchase of fire sprinkler systems which are installed in residential new construction, 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 the sale of a fire sprinkler system which is installed in the new construction of a qualified residential property are exempt from the tax imposed under the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.).
b. As used in P.L. , c. (pending before the Legislature as this bill)
"Fire sprinkler system" means an automatic fire suppression system that includes an automatic water sprinkler system or a standpipe system and related system components, including detection.
"Qualified residential property" means: a dwelling house; a condominium unit under the form of real property ownership provided for under the "Condominium Act," P.L.1969, c.257 (C.46:8B-1 et seq.); a unit in a cooperative or mutual housing corporation; a unit in a horizontal property regime under the form of real property ownership provided under the "Horizontal Property Act," P.L.1963, c.168 (C.46:8A-1 et seq.); a unit in a continuing care retirement community; or a manufactured home that is taxable as real property or that is installed in a mobile home park.
2. This act shall take effect immediately and apply to receipts received from sales made on or after the first day of the second month following enactment.
STATEMENT
This bill establishes an exemption from the sales and use tax for the purchase of a fire sprinkler system which is installed in the new construction of qualified residential property. The tax exemption is intended to encourage the installation of fire sprinkler systems in newly constructed residences.
Fires in residential properties constitute 31.7 percent of fires in the United States. However, residential fires are responsible for a disproportionately high percentage of deaths, injuries and financial losses in the United State, constituting 76.5 percent of fire deaths, 78 percent of fire injuries and 55 percent of fire financial losses. The installation of fire sprinklers have shown to decrease the number of deaths, injuries and financial losses suffered in a residential fire. The exemption from sales and use taxation on the purchase of fire sprinkler systems which are installed in the new construction of qualified residential property will encourage the installation of fire sprinkler systems and protect the lives, health, and property of New Jersey residents.
