Bill Text: NJ S3354 | 2022-2023 | Regular Session | Introduced
Bill Title: Exempts purchases of natural gas and electricity for residential customers from sales and use tax for duration of winter season.
Spectrum: Partisan Bill (Republican 4-0)
Status: (Introduced - Dead) 2022-12-01 - Introduced in the Senate, Referred to Senate Economic Growth Committee [S3354 Detail]
Download: New_Jersey-2022-S3354-Introduced.html
Sponsored by:
Senator JOSEPH PENNACCHIO
District 26 (Essex, Morris and Passaic)
Senator DECLAN J. O'SCANLON, JR.
District 13 (Monmouth)
Co-Sponsored by:
Senator Holzapfel
SYNOPSIS
Exempts purchases of natural gas and electricity for residential customers from sales and use tax for duration of winter season.
CURRENT VERSION OF TEXT
As introduced.
An Act exempting certain purchases of natural gas and electricity from the sales and use tax for duration of winter season and supplementing chapter 32B of Title 54 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. Beginning on December 1, 2022 and ending on March 31, 2023, receipts from the retail sales of natural gas and electricity for residential use shall be exempt from the tax imposed pursuant to the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.).
b. A public utility that provides natural gas or electrical services for residential customers shall, at the conclusion of each monthly billing cycle, deduct from each customer's bill the amount that represents the State sales and use tax otherwise due on the retail sale.
c. The Director of the Division of Taxation, in consultation with the Board of Public Utilities, shall adopt rules and regulations in accordance with the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.) as deemed necessary to implement the provisions of this section.
2. This act shall take effect immediately, be retroactive to December 1, 2022 if enacted thereafter, and shall expire on March 31, 2023.
STATEMENT
This bill exempts from the State sales and use tax the retail sales of natural gas and electrical services for residential customers from December 1, 2022 through March 31, 2023. Public utilities that provide natural gas and electric services would be required, at the conclusion of each monthly billing cycle, to deduct from each customer's bill the amount that represents the sales and use tax.
The State of New Jersey finds itself in the midst of a worsening affordability crisis. Inflation has made it harder to afford basic goods and services while disruptions brought on by the war in Ukraine have sent global energy costs soaring. Locally, this had led to an increase in residential energy costs with the New Jersey Board of Public Utilities recently approving double-digit rate increases for the State's four largest gas providers. These rate hikes range anywhere from 15 to 25 percent and are expected to increase the average household's energy bill by an average of $300 annually. With many experts anticipating another harsh winter ahead, it is imperative for the State to help ease this financial burden. By exempting the purchase of natural gas and electrical services from the sales and use tax for the duration of the winter season, residents will be able to find some measure of relief in the face of rising costs.
