NJ wants to give you an annual 10-day break from sales tax

💵 Legislators have advanced a proposed law that creates an annual sales tax holiday

💵 Only certain items would be eligible for the break

💵 Individuals must purchase the supplies and equipment for non-business use

The final 10 days of September could soon become the hottest time each year for residents to prepare for the next disaster.

The Assembly Consumer Affairs Committee advanced a measure on Monday that creates an annual sales tax holiday for residents who purchase disaster preparedness supplies and equipment.

What's included and what's not?

underworld111, Getty Stock / ThinkStock

The bill targets items that can help residents preparing for or responding to a fire, flood, storm, tidal wave, earthquake, or blizzard.

Among the eligible items listed in the bill are:

Batteries
Phone chargers
Self-powered light sources
Radios
Gasoline containers
Portable generators
Coolers
Manual can openers
Bungee cords
Boat anchors
Rope
Tie-down kits

The bill's language originally included disaster preparedness pet-related supplies and winter weather preparedness supplies, but it was amended to keep those items out — at least for now.

Assemblyman Paul Moriarty, D-Gloucester, a sponsor of the measure, said he wants those items to be eligible for the tax break as well, but the list must adhere to a multi-state agreement that defines what counts as disaster preparedness items. Through that agreement, retailers easily know which items to include and which items to exclude when a tax holiday is put into effect.

The bill tells the Department of Treasury to make an official request to include pet and winter items in the Streamlined Sales and Use Tax Agreement.

If the bill were to be signed into law in the next month or so, the perk would be able to go live on Sept. 21 of this year. The bill calls for eligible items to be sold sales tax-free from Sept. 21 to Sept. 30 of each year.

The sales tax holiday would apply to individuals who purchase eligible supplies for non-business use.

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Weird things NJ taxes - and some they don't

In general, New Jersey assesses a 6.625% Sales Tax on sales of most tangible personal property, specified digital products, and certain services unless specifically exempt under New Jersey law.

However, the way the sales tax is applied in New Jersey sometimes just doesn't make sense.

New Jersey puts out an itemized list for retailers that spells out what is, and what is not, taxed.

Perhaps because this is New Jersey, there are some bizarre and seemingly contradictory listings.

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Source: NJ wants to give you an annual 10-day break from sales tax

Categories: New Jersey News