Bill Text: NJ S990 | 2010-2011 | Regular Session | Introduced
Bill Title: Exempts certain materials and labor used to convert traditional motor vehicles into plug-in hybrid electric motor vehicles from sales and use tax.
Sponsorship: Partisan Bill (Republican 1)
Status: (Introduced - Dead) 2010-03-24 - Reviewed by the Sales Tax Review Commission Recommend to not enact [S990 Detail]
Download: New_Jersey-2010-S990-Introduced.html
Sponsored by:
Senator DIANE B. ALLEN
District 7 (Burlington and Camden)
SYNOPSIS
Exempts certain materials and labor used to convert traditional motor vehicles into plug-in hybrid electric motor vehicles from sales and use tax.
CURRENT VERSION OF TEXT
As introduced.
An Act exempting certain materials and labor used to convert traditional motor vehicles into plug-in hybrid electric motor vehicles from the sales and use tax, 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 batteries and electronic equipment used directly and exclusively in the conversion of a traditional motor vehicle into a plug-in hybrid electric motor vehicle 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. Receipts from sales of services used directly and exclusively in the conversion of a traditional motor vehicle into a plug-in hybrid electric motor vehicle are exempt from the tax imposed under the "Sales and Use Tax Act," P.L.1966, c.30.
c. As used in this section, "plug-in hybrid electric motor vehicle" means a motor vehicle which meets the applicable federal motor vehicle safety standards with an internal combustion engine, and (1) allows power to be delivered to the drive wheels by a battery-powered electric motor or other mechanical device; (2) has a battery or other mechanical storage device that can be plugged into an electrical outlet to recharge or be able to be recharged from the movement of the vehicle; and (3) has the ability to travel at least five miles powered substantially by electricity or by other forms of mechanical power other than an internal combustion engine.
d. The director, in consultation with the Commissioner of the Department of Environmental Protection, the Commissioner of the Department of Transportation, and the Chief Administrator of the New Jersey Motor Vehicles Commission, shall promulgate, in accordance with the "Administrative Procedure Act," P.L. 1968, c. 410 (C. 52:14B-1 et seq.), such rules and regulations as may be necessary to effectuate the purposes of this section.
2. This act shall take effect immediately; provided however, that section 1 shall remain inoperative until the first day of the second month next following the date of enactment.
STATEMENT
This bill provides an exemption from the sales and use tax for the materials and labor used directly and exclusively in the conversion of a traditional motor vehicle into a plug-in hybrid electric motor vehicle. Under the bill, the receipts from sales of batteries and electronic equipment as well as services that are purchased in connection with the conversion of plug-in hybrid electric vehicles are exempt from taxation.
For purposes of this bill, plug-in hybrid electric vehicles are a subset of motor vehicles that meet the applicable federal motor vehicle safety standards with an internal combustion engine, and (1) allow power to be delivered to the drive wheels by a battery-powered electric motor or other mechanical device; (2) have a battery or other mechanical storage device that can be plugged into an electrical outlet to recharge or be able to be recharged from the movement of the vehicle; and (3) have the ability to travel at least five miles powered substantially by electricity or by other forms of mechanical power other than an internal combustion engine.
By exempting the materials and services associated with the plug-in hybrid conversion process, this bill provides an economic incentive for New Jersey residents to adopt modes of transportation that limit emissions and reduce their overall fossil fuel dependency. The exemption provided by the bill is also intended to promote the technological innovation associated with the development of alternative fuel vehicles, and encourage auto manufacturers to expand the range of cars and trucks, vans and SUV's that have the capacity for plug-in hybrid conversion.
