Sponsored by:
Senator ROBERT W. SINGER
District 30 (Monmouth and Ocean)
Senator SANDRA B. CUNNINGHAM
District 31 (Hudson)
SYNOPSIS
Eliminates requirement to submit sales tax exemption form for textbook purchases.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act concerning the sales tax exemption for textbooks, amending P.L.1980, c.105.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 33 of P.L.1980, c.105 (C.54:32B-8.21) is amended to read as follows:
33. Receipts from sales or rentals of school textbooks [for use by students in a school, college, university, or other educational institution, approved as such by the Department of Education or by the New Jersey Commission on Higher Education, when the educational institution, upon forms and pursuant to regulations prescribed by the director, has declared the books are required for school purposes and the purchaser has supplied the seller with the form at the time of the sale] , whether new or used, in electronic or other form, are exempt from the tax imposed under the Sales and Use Tax Act.
(cf: P.L.2005, c.126, s.11)
2. This act shall take effect on the first day of the first calendar quarter beginning at least 30 days following enactment.
STATEMENT
This bill eliminates the requirement that, for a purchase to be eligible for the sales tax exemption for textbooks, purchasers must provide the seller with a tax exemption form. In addition, the school will no longer need to declare the textbooks required for school, and the school will not need to be a school approved by the Department of Education or Secretary of Higher Education.
Currently, sales and rentals of textbooks for use by students are exempt from sales tax. However, the purchaser must provide the seller with a form stating that the purchaser is a student and the particular book is required for school. When purchasing textbooks at a school bookstore, the process is usually streamlined as the bookstore has access to enrollment data and syllabi. In contrast, when purchasing from online sellers the requirement to supply the seller with a form can be particularly onerous.
Pursuant to this bill, school textbooks will not need to be accompanied by a form for the purchase to be exempt from sales tax. In addition, the bill clarifies that rentals are included in the exemption, and regardless of what condition or form the book is in, the exemption will apply.