A4406

An Act exempting certain retail sales of school supplies and sport or recreational equipment from taxation under the “Sales and Use Tax Act,” and amending and supplementing P.L.1980, c.105 (C.54:32B-1 et seq.).

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. (New section) a. Receipts from retail sales of the following products are exempt from the tax imposed under the “Sales and Use Tax Act,” P.L.1966, c.30 (C.54:32B-1 et seq.) if the products are sold to an individual purchaser for non-business use:

(1) computers with a sales price of less than $3,000 per item;

(2) school computer supplies with a sales price of less than $1,000 per item;

(3) school supplies;

(4) school art supplies; and

(5) school instructional materials.

b. As used in this section:

“Computers” means electronic devices that accept information in digital or similar form and manipulate it for a result based on a sequence of instructions;

“Electronic” means relating to technology having electrical, digital, magnetic, wireless, optical, electromagnetic, or similar capabilities;

“School art supplies” means items commonly used by a student in a course of study for artwork, and shall include: clay and glazes; paints, including acrylic, tempera, and oil; paintbrushes used for artwork; sketch and drawing pads; and watercolors;

“School computer supplies” means items commonly used by a student in a course of study in which a computer is used, and shall include: computer storage media, diskettes, and compact disks; handheld electronic schedulers, except devices that are cellular phones; personal digital assistants, except devices that are cellular phones; computer printers; and printer supplies for computers, printer paper, and printer ink;

“School instructional materials” means written materials commonly used by a student in a course of study as a reference and to learn the subject being taught, and shall include: reference books; reference maps and globes; textbooks; and workbooks;

“School supplies” means items commonly used by a student in a course of study, and shall include: binders; book bags; calculators; cellophane tape; blackboard chalk; compasses; composition books; crayons; erasers; folders, including expandable folders, pocket folders, plastic folders, and manila folders; glue, paste, and paste sticks; highlighters; index cards; index card boxes; legal pads; lunch boxes; markers; notebooks; paper, including loose leaf ruled notebook paper, copy paper, graph paper, tracing paper, manila paper, colored paper, poster board, and construction paper; pencil boxes and other school supply boxes; pencil sharpeners; pencils; pens; protractors; rulers; scissors; and writing tablets.

2. Section 16 of P.L.1980, c.105 (C.54:32B-8.4) is amended to read as follows:

16. a. Receipts from sales of articles of clothing and footwear, and sport or recreational equipment, for human use are exempt from the tax imposed under the "Sales and Use Tax Act." This exemption does not apply to fur clothing, clothing accessories or equipment, [sport or recreational equipment,] or protective equipment.

b. Receipts from sales of protective equipment necessary for the daily work of the user are exempt from the tax imposed under the "Sales and Use Tax Act."

c. Receipts from sales of sewing materials, such as fabrics, thread, knitting yarn, buttons and zippers, purchased by noncommercial purchasers for incorporation into clothing as a constituent part thereof, are exempt from the tax imposed under the "Sales and Use Tax Act."

d. As used in this section:

"Clothing" means all human wearing apparel suitable for general use. Clothing shall not include: clothing accessories or equipment, sport or recreational equipment, protective equipment, sewing equipment and supplies, or sewing materials that become part of clothing.

"Clothing accessories or equipment" means incidental items worn on the person or in conjunction with clothing.

"Fur clothing" means clothing that is required to be labeled as a fur product under 15 U.S.C. s.69, and the value of the fur components in the product is more than three times the value of the next most valuable tangible component. For the purposes of this section, "fur" means any animal skin or part thereof with hair, fleece, or fur fibers attached thereto, either in its raw or processed state, but shall not include such skins that have been converted into leather or suede, or which in processing the hair, fleece, or fur fiber has been completely removed.

"Protective equipment" means items for human wear and designed as protection of the wearer against injury or disease or as protections against damage or injury of other persons or property but not suitable for general use.

"Sport or recreational equipment" means items designed for human use and worn in conjunction with an athletic or recreational activity that are not suitable for general use, and shall include, but shall not be limited to: ballet and tap shoes; cleated or spiked athletic shoes; gloves, including baseball gloves, bowling gloves, boxing gloves, hockey gloves, and golf gloves; goggles; hand and elbow guards; life preservers and vests; mouth guards; roller and ice skates; shin guards; shoulder pads; ski boots; waders; and wetsuits and fins.

(cf: P.L.2008, c.123, s.8)

3. This act shall take effect immediately and shall apply to receipts received from all sales made on or after the first day of the second calendar quarter next following the date of enactment.

STATEMENT

This bill would permanently exempt from the tax imposed under the “Sales and Use Tax Act,” P.L.1980, c.105 (C.54:32B-1 et seq.) school-related supplies and equipment, and sport or recreational equipment.

The bill exempts six categories of school-related supplies and equipment from the “Sales and Use Tax”:

(1) school supplies, such as pens and pencils, notebooks, and binders;

(2) school art supplies, such as paints and paintbrushes, clay, and glazes;

(3) school instructional materials, such as reference books, reference maps, globes, textbooks, and workbooks;

(4) computers with a sales price of less than $3,000 per item;

(5) school computer supplies with a sales price of less than $1,000 per item, such as computer storage equipment, printers, and personal digital assistants; and

(6) sport or recreational equipment.

The bill defines “sport or recreational equipment" as items designed for human use and worn in conjunction with an athletic or recreational activity that are not suitable for general use, such as ballet and tap shoes; cleated or spiked athletic shoes; gloves, including baseball gloves, bowling gloves, boxing gloves, hockey gloves, and golf gloves; goggles; hand and elbow guards; life preservers and vests; mouth guards; roller and ice skates; shin guards; shoulder pads; ski boots; waders; and wetsuits and fins.