Sponsored by:
Assemblyman ERIC HOUGHTALING
District 11 (Monmouth)
SYNOPSIS
Broadens farm use sales tax exemption for receipts from sales of tangible personal property and production and conservation to farmer for use and consumption.
CURRENT VERSION OF TEXT
As introduced.
An Act revising the farm use sales tax exemption and amending P.L.1980, c.105.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 28 of P.L.1980, c.105 (C.54:32B-8.16) is amended to read as follows:
28. a. Receipts from sales of tangible personal property and production and conservation services to a farmer for use and consumption [directly and] primarily in the production, handling and preservation for sale of agricultural or horticultural commodities at the farming enterprise of that farmer are exempt from the tax imposed under the "Sales and Use Tax Act."
b. The exemptions provided by subsection a. of this section shall not apply to sales of:
(1) automobiles;
(2) energy; or
(3) materials used to construct a building or structure, other than a silo, greenhouse, grain bin, or manure handling equipment.
c. For the purposes of this section:
"Agricultural or horticultural commodities" means tangible personal property produced through the raising of plants or animals useful to people, including but not limited to: forages and sod crops; livestock; grains and feed crops; dairy animals and products; poultry and poultry products; game animals and fur-bearing animals; honey and other apiary products; the products of aquaculture; trees and forest products; fruits, nuts and berries; vegetables; and nursery, floral, ornamental and greenhouse products; and
"Farming enterprise" means a facility used primarily for the raising of agricultural or horticultural commodities for sale, including but not limited to truck farms, ranches, orchards, nurseries, greenhouses or other similar facilities.
(cf: P.L.1999, c.314, s.2)
2. This act shall take effect immediately and apply to receipts received from all sales made on or after the first day of the first full calendar quarter next following enactment.
STATEMENT
This bill broadens the “farm use” sales tax exemption to provide that receipts from the sale of tangible personal property and
production and conservation services to a farmer for use and consumption primarily in the production, handling, and preservation for sale of agricultural or horticultural commodities at the farming enterprise of a farmer are exempt from the sales tax.
Under current law, the “farm use” sales tax exemption applies only if the personal property and production and conservation services sold to a farmer are for use and consumption directly and primarily in the production, handling, and preservation for sale of agricultural and horticultural commodities at the farming enterprise.