Sponsored by:
Assemblyman DAVID BAILEY, JR.
District 3 (Cumberland, Gloucester and Salem)
Assemblywoman ANDREA KATZ
District 8 (Atlantic and Burlington)
SYNOPSIS
“Sales Tax Holiday Weekend Act”; establishes annual sales tax holiday every third weekend in August for certain retail sales.
CURRENT VERSION OF TEXT
As introduced.
An Act establishing an annual exemption period under the sales and use tax certain retail sales, designated as the “Sales Tax Holiday Weekend Act,” and supplementing P.L.1966, c.30 (C.54:32-B-1 et seq.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. Receipts from retail sales of tangible personal property with a sales price of $3,000 or less per item that is purchased by an individual for personal, nonbusiness use 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 sale occurs during the exemption period, except that the exemption shall not apply to the retail sales of prepared food, alcoholic beverages, tobacco products, vapor products, cannabis items, and intoxicating hemp beverages.
b. As used in this section:
“Alcoholic beverage” means the same as the term is defined in section 2 of P.L. 2022, c. 97 (C.54:32B-2).
“Cannabis item” means the same as the term is defined in section 3 of P.L.2021, c.16 (C.24:6I-33).
“Exemption period” means the period of time between 12:01 a.m. on Saturday and 11:59 p.m. Sunday of the third weekend of August of each year.
“Intoxicating hemp beverage” means the same as the term is defined in section 3 of P.L.2021, c.16 (C.24:6I-33).
“Prepared food” means the same as the term is defined in paragraph (3) of subsection c. of section 3 of P.L.1966, c.30 (C.54:32B-3).
“Tobacco product” means the same as the term is defined in section 1 of P.L.2019, c.396 (C.2A:170-51.11).
“Vapor product” means the same as the term is defined in section 1 of P.L.2019, c.396 (C.2A:170-51.11).
2. 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 regulations as the director deems necessary to implement the provisions of section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill) and to maintain compliance with the Streamlined Sales and Use Tax Agreement, which regulations shall be effective for a period not to exceed 180 days from the date of filing. The regulations may therefore be amended, adopted, or readopted by the director as the director deems necessary in accordance with P.L. 1968, c.410.
3. This act shall take effect immediately and shall apply to retail sales made during exemption periods occurring at least 30 days following the date of enactment.
STATEMENT
This bill, designated as the “Sales Tax Holiday Weekend Act,” establishes an annual sales tax holiday for certain retail sales made during the third weekend of August each year. During this period, qualifying retail sales would be exempt for the State’s sales and use tax.
Specifically, the annual sales tax holiday would apply to the retail sale of tangible personal property purchased by an individual for personal, nonbusiness use that has a sales price of $3,000 or less per item. However, the sales tax holiday would not apply to the sales of prepared foods, alcoholic beverages, tobacco products, vapor products, cannabis items, and intoxicating hemp beverages.