S2452

An Act providing a rebate of the sales and use tax paid for certain purchases made by businesses affected by Hurricane Sandy, 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. As used in P.L. , c. (C. ) (pending before the Legislature as this bill):

“Business facility” means any building, complex of buildings, or structural components of buildings that are located in this State and used directly and primarily in the conduct of a business, trade, or occupation;

“Business machinery, apparatus, and equipment” means any machinery, apparatus, and equipment that is located within a business facility and used directly and primarily in the conduct of a business, trade, or occupation;

“Construction equipment” means vehicles, machines, tools, implements, or other devices used or consumed in connection with the reconstruction, repair, or rehabilitation of a business facility, which vehicles, machines, tools, implements, or other devices are not incorporated into the business facility as a physical component part of the facility and which vehicles, machines, tools, implements, or other devices are not necessarily consumed in the performance of the reconstruction, repair, or rehabilitation;

“Construction materials” means items of tangible personal property used or consumed in connection with the reconstruction, repair, or rehabilitation of a business facility, which items are incorporated into the business facility as a physical component part of the facility;

“Construction supplies” means items of tangible personal property used or consumed in connection with the reconstruction, repair, or rehabilitation of a business facility, which items are not incorporated into the business facility as a physical component part of the facility;

“Contractor” means an individual, partnership, corporation, or other commercial entity engaged in a business that is involved in the erection of structures for others, or building, or otherwise improving, altering, or repairing real property for others;

"Motor vehicle" includes all vehicles propelled otherwise than by muscular power (excepting such vehicles as run only upon rails or tracks), trailers, semitrailers, house trailers, or any other type of vehicle drawn by a motor-driven vehicle, and motorcycles, designed for operation on the public highways;

“Office furnishings, fixtures, and supplies” means any furnishings, fixtures, and supplies that are located within a business facility and used directly and primarily in the conduct of a business, trade, or occupation;

“Recovery period” means the period on or after October 30, 2012 but before April 1, 2014;

“Repairman” means an individual, partnership, corporation, or other commercial entity engaged in a business that is involved in the installation, maintenance, repair, or servicing of tangible personal property or real property for others; and

“Storm victim” means a business owner or other similar person who owns or otherwise maintains and operates a business facility that was damaged, destroyed, or lost as a result of wind, flooding, or other storm conditions caused by or attributable to Hurricane Sandy.

2. Receipts from sales of construction materials, construction supplies, and construction equipment that are made during the recovery period to a storm victim, or to a contractor or repairman on behalf of a storm victim, and that are used or consumed by the storm victim, or a contractor or repairman on behalf of the storm victim, to reconstruct, repair, or rehabilitate a business facility of the storm victim that is located in this State and was damaged, destroyed, or lost as a result of wind, flooding, or other storm conditions caused by or attributable to Hurricane Sandy are exempt from the tax imposed pursuant to the “Sales and Use Tax Act,” P.L.1966, c.30 (C.54:32B-1 et seq.).

3. Receipts from sales of services that are rendered during the recovery period to install, maintain, service, or repair construction materials, construction supplies, and construction equipment that are purchased during the recovery period by a storm victim, or a contractor or repairman on behalf of a storm victim, and that are used or consumed by the storm victim, or a contractor or repairman on behalf of the storm victim, to reconstruct, repair, or rehabilitate the business facility of a storm victim that is located in this State and was damaged, destroyed, or lost as a result of wind, flooding, or other storm conditions caused by or attributable to Hurricane Sandy are exempt from the tax imposed pursuant to the “Sales and Use Tax Act,” P.L.1966, c.30 (C.54:32B-1 et seq.).

4. Receipts from sales of business machinery, apparatus, and equipment and from sales of office furnishings, fixtures, and supplies that are made during the recovery period to a storm victim, or to a contractor or repairman on behalf of a storm victim, and that are used or consumed by the storm victim, or a contractor or repairman on behalf of the storm victim, to replace business machinery, apparatus, and equipment or office furnishings, fixtures, and supplies that were damaged, destroyed, or lost as a result of wind, flooding, or other storm conditions caused by or attributable to Hurricane Sandy, are exempt from the tax imposed pursuant to the “Sales and Use Tax Act,” P.L.1966, c.30 (C.54:32B-1 et seq.).

5. Receipts from sales of services that are rendered during the recovery period to install business machinery, apparatus, and equipment and to install office furnishings, fixtures, and supplies that are purchased during the recovery period by a storm victim, or a contractor or repairman on behalf of a storm victim, and that are used or consumed by the storm victim, or a contractor or repairman on behalf of the storm victim, to replace business machinery, apparatus, and equipment or office furnishings, fixtures, and supplies that were damaged, destroyed, or lost as a result of wind, flooding, or other storm conditions caused by or attributable to Hurricane Sandy, are exempt from the tax imposed pursuant to the “Sales and Use Tax Act,” P.L.1966, c.30 (C.54:32B-1 et seq.).

6. Receipts from sales of services that are rendered during the recovery period to maintain, service, or repair business machinery, apparatus, and equipment and to maintain, service, or repair office furnishings, fixtures, and supplies of a storm victim that were damaged, destroyed, or lost as a result of wind, flooding, or other storm conditions caused by or attributable to Hurricane Sandy are exempt from the tax imposed pursuant to the “Sales and Use Tax Act,” P.L.1966, c.30 (C.54:32B-1 et seq.).

7. Receipts from sales of motor vehicles that are made during the recovery period to a storm victim, and that are used to replace a motor vehicle that was registered or principally garaged in this State by the storm victim and was damaged, destroyed, or lost as a result of wind, flooding, or other storm conditions caused by or attributable to Hurricane Sandy, are exempt from the tax imposed pursuant to the “Sales and Use Tax Act,” P.L.1966, c.30 (C.54:32B-1 et seq.).

8. Receipts from sales of services that are rendered during the recovery period to maintain, service, or repair a motor vehicle that was registered or principally garaged in this State by the storm victim and was damaged, destroyed, or lost as a result of wind, flooding, or other storm conditions caused by or attributable to Hurricane Sandy are exempt from the tax imposed pursuant to the “Sales and Use Tax Act,” P.L.1966, c.30 (C.54:32B-1 et seq.).

9. a. Notwithstanding the provisions of sections 2 through 8 of P.L. , c. (C. ) (pending before the Legislature as this bill), the seller shall charge and collect the tax imposed pursuant to the “Sales and Use Tax,” P.L.1966, c.30 (C.54:32B-1 et seq.) from the purchaser on eligible sales of tangible personal property and services at the rate then in effect, and the tax shall be returned as a rebate to the storm victim by the filing of a claim, on or after the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill) but before October 1, 2014, with the Director of the Division of Taxation in the Department of the Treasury for a rebate of the sales and use tax paid.

b. The filing of a claim for a rebate in accordance with subsection a. of this section shall be made on forms furnished by the director, and shall be accompanied by an approved Federal Emergency Management Agency application for disaster assistance or other similar approved application for State or federal disaster assistance, by insurance claim, or by any other information and documentation as the director may determine to be necessary and appropriate to verify the tax paid on eligible sales, to confirm the location of the storm victim’s business facility or the registration or place where the storm victim’s motor vehicle was principally garaged, and to demonstrate the damage, destruction, or loss caused by or attributable to Hurricane Sandy.

c. The director shall review each complete claim for rebate filed in accordance with subsection a. of this section, and shall determine the amount to be returned as a rebate for the sales and use tax paid in connection with eligible purchases of tangible personal property and services based on the tax separately stated on the sales slip, invoice, receipt, or other statement or memorandum given to the purchaser at the time of purchase; provided however, that the director shall determine the amount to be returned as a rebate for the tax paid in connection with eligible purchases of construction materials, construction supplies, construction equipment, business machinery, apparatus, and equipment, and office furnishings, fixtures, and supplies made by a contractor or a repairman on behalf of a storm victim based upon the separately stated cost of the construction materials, construction supplies, construction equipment, business machinery, apparatus, and equipment, and office furnishings, fixtures, and supplies to the storm victim, or, if the cost for the construction materials, construction supplies, construction equipment, business machinery, apparatus, and equipment, and office furnishings, fixtures, and supplies is not separately stated on the contract, bill, or invoice given to the storm victim by the contractor or repairman, the amount to be returned as a rebate shall be based on fifty percent of the total amount of the sales price paid; provided further, that the director shall determine the amount to be returned as a rebate for the tax paid in connection with eligible purchases of motor vehicles based on the amount actually paid for the motor vehicle by the storm victim, net of any credit for property of the same kind traded-in, up to the average retail value of the motor vehicle damaged, destroyed, or lost as a result of wind, flooding, or other storm conditions caused by or attributable to Hurricane Sandy, as reported in the current National Automobile Dealers Association Guide, or $2,000, whichever is greater.

d. The director shall return to each storm victim that has filed a complete claim for rebate in accordance with subsection a. of this section the amount determined to be returned as a rebate for the sales and use tax paid within 180 days of the date the complete claim is filed.

e. The director shall pay to each storm victim interest on any amount determined to be returned as a rebate for the sales and use tax paid that is not returned within 180 days of the date the complete claim is filed, in the same form and manner as is allowed and paid on overpayments of tax pursuant to section 7 of P.L.1992, c.175 (C.54:49-15.1).

10. 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 rules and regulations as the director determines to be necessary and appropriate to effectuate the purposes of P.L. , c. (C. ) (pending before the Legislature as this bill), which rules and regulations shall be effective for a period not to exceed 180 days following the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill) and may thereafter be amended, adopted, or readopted by the director in accordance with P.L.1968, c.410 (C.52:14B-1 et seq.)

11. This act shall take effect immediately.

STATEMENT

This bill provides a rebate of the sales and use tax paid for certain purchases of taxable goods and services made by storm victims – businesses in this State that were affected by Hurricane Sandy.

Under the bill, receipts from sales of the following goods made to storm victims, or to contractors or repairmen on behalf of storms victims, during the recovery period (on or after October 30, 2012 but before April 1, 2014) are eligible for the rebate:

-- construction materials, construction supplies, and construction equipment that are used or consumed to reconstruct, repair, or rehabilitate a business facility of a storm victim that is located in this State and was damaged, destroyed, or lost as a result of wind, flooding, or other storm conditions caused by or attributable to Hurricane Sandy;

-- business machinery, apparatus, and equipment and office furnishings, fixtures, and supplies used or consumed to replace business machinery, apparatus, and equipment or office furnishings, fixtures, and supplies of a storm victim that were damaged, destroyed, or lost as a result of wind, flooding, or other storm conditions caused by or attributable to Hurricane Sandy; and

-- motor vehicles that are used or consumed to replace a motor vehicle that was registered, or principally garaged, in this State by a storm victim and was damaged, destroyed, or lost as a result of wind, flooding, or other storm conditions caused by or attributable to Hurricane Sandy.

The bill provides that the tax rebate similarly applies to the receipts from sales of the following services rendered during the recovery period (on or after October 30, 2012 but before April 1, 2014):

-- services to install, maintain, service, or repair construction materials, construction supplies, and construction equipment that are used or consumed to reconstruct, repair, or rehabilitate the business facility of a storm victim that is located in this State and was damaged, destroyed, or lost as a result of wind, flooding, or other storm conditions caused by or attributable to Hurricane Sandy;

-- services to install business machinery, apparatus, and equipment and to install office furnishings, fixtures, and supplies that are used or consumed to replace business machinery, apparatus, and equipment or office furnishings, fixtures, and supplies of a storm victim that were damaged, destroyed, or lost as a result of wind, flooding, or other storm conditions caused by or attributable to Hurricane Sandy;

-- services to maintain, service, or repair business machinery, apparatus, and equipment and to maintain, service, or repair office furnishings, fixtures, and supplies of a storm victim that were damaged, destroyed, or lost as a result of wind, flooding, or other storm conditions caused by or attributable to Hurricane Sandy; and

-- services to maintain, service, or repair a motor vehicle that was registered or principally garaged in this State by the storm victim and was damaged, destroyed, or lost as a result of wind, flooding, or other storm conditions caused by or attributable to Hurricane Sandy.

The bill provides that to receive the benefit of the sales and use tax rebate storm victims, and contractors and repairmen making purchases on behalf of storm victims, must pay the tax at the current rate in effect on purchases of eligible goods and services at the point of purchase. The bill specifies that storm victims must then file a claim with the Director of the Division of Taxation in the Department of the Treasury for a rebate of the sales and use tax paid.

The bill provides a limited window for storm victims to file a claim for rebate. The bill specifies that claims for rebate must be filed with the director on or after the effective date of the bill but before October 1, 2014.

The bill provides that claims for rebate must be made on forms furnished by the director, and must be accompanied by an approved Federal Emergency Management Agency application for disaster assistance or other similar approved application for State or federal disaster assistance, by insurance claim, or by any other information and documentation determined to be necessary and appropriate by the director to verify the tax paid on eligible sales, to confirm the location of the storm victim’s business facility or the registration or place where the storm victim’s motor vehicle is principally garaged, and to demonstrate the damage, destruction, or loss caused by or attributable to Hurricane Sandy.

The bill requires the director to review each complete claim filed by a storm victim, and to determine the rebate amount for each complete claim. The bill provides that the director’s determination will be based on the tax separately stated on the sales slip, invoice, receipt, or other statement or memorandum given to the purchaser at the time of purchase, but specifies certain rules that apply to purchases made by contractors on behalf of storm victims and certain rules that apply to purchases of motor vehicles.

The bill requires the director to return the amount of any rebate of sales and use tax paid to the storm victim within 180 days of the date the complete claim is filed. The bill requires the director to pay interest on rebates not returned to storm victims within that frame of time.

The bill authorizes the director to adopt rules and regulations to effectuate the purposes of the bill, and permits the immediate filing of those rules and regulations with the Office of Administrative Law, effective for a period not to exceed 180 days following the bill’s effective date.

The bill takes effect immediately upon enactment.

The purpose of this bill is to provide tax relief to businesses in this State that were affected by Hurricane Sandy. The tax rebate provided by the bill will reduce the overall cost of purchasing the goods and services necessary to rebuild following the destruction and put more money back in the pockets of the businesses that were devastated by the storm.