Sponsored by:
Senator VINCENT J. POLISTINA
District 2 (Atlantic)
SYNOPSIS
Provides sales tax exemption for maintaining, servicing, or repairing of aircraft and sales of machinery or equipment and replacement parts installed on aircraft within aviation district.
CURRENT VERSION OF TEXT
As introduced.
An Act providing an exemption under the sales and use tax for certain services and equipment for aircraft within an aviation district, amending P.L.1980, c.98.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 1 of P.L.1980, c.98 (C.54:32B-8.35) is amended to read as follows:
1. Receipts from:
a. sales of aircraft and repairs thereto including machinery or equipment to be installed on such aircraft and replacement parts therefor when utilized by an air carrier as defined by the Civil Aeronautics Board or the Code of Federal Regulations having its principal place of operations within the State and engaging in interstate, foreign, or intrastate air commerce; [and]
b. repairs on aircraft having a maximum certificated takeoff weight, as contained in the certificate type issued by the Federal Aviation Administration, of 6,000 pounds or more, including machinery or equipment to be installed on such aircraft and replacement parts therefor; and
c. charges for services involved in the maintaining, servicing, or repairing of aircraft within the Aviation District, including sales of machinery or equipment and replacement parts therefor to be installed on aircraft within the Aviation District, as “Aviation District” is defined in section 55 of the "New Jersey Economic Recovery Act of 2020," P.L.2020, c.156 (C.34:1B-323) and section 69 of the " New Jersey Economic Recovery Act of 2020," P.L.2020, c. 156 (C.34:1B-337); are exempt from the tax imposed under the Sales and Use Tax Act.
(cf: P.L.1999, c.246, s.1)
2. This act shall take effect immediately and shall apply to receipts received from all sales made on or after the first day of the fourth month next following the date of enactment.
STATEMENT
This bill provides a sales tax exemption for maintaining, servicing, or repairing of aircraft and sales of machinery or equipment and replacement parts installed on aircraft within the aviation district. For purposes of the bill, an aviation district means all areas within the boundaries of the Atlantic City International Airport, and the Federal Aviation Administration William J. Hughes Technical Center, and the area within a one-mile radius of the outermost boundary of the Atlantic City International Airport and the Federal Aviation Administration William J. Hughes Technical Center. The aviation district is included as an economic incentive zone under several State economic development incentive acts. This sales tax exemption will further encourage the expansion of aircraft service and repair facilities among the several other aviation and technology related facilities that are developing in this zone. The addition of this sales tax exemption will provide an additional economic incentive within this zone and will aid in further diversifying the economy of the surrounding area of the zone that has been heavily dependent on a casino and tourism-based economy.