Bill Text: NJ S399 | 2012-2013 | Regular Session | Introduced
Bill Title: Exempts sales of methane gas fuel conversion machinery and equipment from sales and use taxes.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2012-03-12 - Reviewed by the Sales Tax Review Commission recommend to not enact [S399 Detail]
Download: New_Jersey-2012-S399-Introduced.html
STATE OF NEW JERSEY
215th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2012 SESSION
Sponsored by:
Senator DIANE B. ALLEN
District 7 (Burlington)
SYNOPSIS
Exempts sales of methane gas fuel conversion machinery and equipment from sales and use taxes.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel
An Act concerning the sales and use tax on retail sales of methane gas fuel conversion machinery and equipment, and 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 sales of methane gas fuel conversion machinery and equipment 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. For the purpose of this section:
"Methane gas" means a renewable, waste, or stranded source of methane gas extracted from a landfill, anaerobic digestion system, agricultural waste, or sewage system.
"Methane gas fuel conversion machinery and equipment" means any industrial fixtures, devices, and support facilities and tangible personal property that becomes an ingredient or component thereof, including repair parts and replacement parts that are integral and necessary for the conversion of methane gas into a useable fuel.
"Useable fuel" means a liquid or compressed gas that may be used as fuel for a motor vehicle, or to generate electricity, or as a fuel in other off-site consumption.
c. (1) The exemption provided in this section shall apply to sales of methane gas fuel conversion machinery and equipment, or to services rendered in respect to constructing structures, installing, constructing, repairing, cleaning, decorating, altering, or improving of new or existing structures or new or existing machinery and equipment, or to sales of tangible personal property that becomes and ingredient or component of new or existing structures, or new or existing machinery and equipment, if the machinery, equipment, or structure is integral and necessary for the conversion of methane gas to a useable fuel.
(2) The exemption provided in this section shall apply to charges made for labor and services rendered in respect to installing, repairing, cleaning, altering, or improving vehicles including new parts, repair parts, and replacement parts, integral and necessary for the conversion to operate the vehicles on liquid fuel or compressed natural gas converted from methane gas.
(3) A person claiming the exemption provided under this section shall keep records necessary for the Commissioner of the Department of Environmental Protection to make a determination of environmental benefit.
d. (1) Receipts from the sales of methane gas fuel conversion machinery and equipment are exempt from the tax imposed under the "Sales and Use Tax Act," provided that the Commissioner of the Department of Environmental Protection has determined that the operation of the system in which the equipment is being or is to be used, and the conversion of methane gas into a useable fuel that results from that operation, are or will be beneficial to the environment as a clean burning fuel
(2) Notwithstanding the provisions of paragraph (1) of this subsection, the seller shall charge and collect the tax from the purchaser on such sales at the rate then in effect, and the tax shall be refunded to the purchaser by the filing of a claim, within three years of the date of purchase, with the New Jersey Division of Taxation for a refund of sales or use tax paid. Proof of claim for refund shall be demonstrated by a copy of a determination of environmental benefit issued to the purchaser by the Commissioner of the Department of Environmental Protection pursuant to this subsection, and by any additional information as the director may require, including but not limited to proof of tax paid.
2. This act shall take effect immediately and shall expire three years thereafter.
STATEMENT
The conversion of methane gas to useable fuels for use in motor vehicles, use in generation of electricity, and for other off-site consumption should be encouraged because it is a clean burning fuel. This bill would exempt the sale and use of methane gas fuel conversion machinery and equipment from the tax imposed under the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.). The bill provides the exemption for the conversion of methane gas extracted from a landfill, anaerobic digestion system, agricultural waste, or sewage system. The methane may be converted to either liquid natural gas or compressed natural gas.
