Democrats Propose Sales Tax Rebate For Those Affected By Sandy

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TRENTON – Assembly Speaker Sheila Oliver and Assembly Majority Leader Lou Greenwald on Tuesday announced they’ve introduced legislation to provide a sales tax rebate for goods and services purchased by individuals and small businesses affected by Hurricane Sandy.

The bill (A-3065) was introduced Monday. The Assembly leaders said they moved to introduce it to help start discussion of the idea as legislators look to help those impacted by the storm. They noted a similar bill was signed into law after Tropical Storm Floyd hit the state in 1999.

“Our top goal as we move toward recovery must be on finding ways to help New Jerseyans affected by Sandy, and this rebate would be much-needed assistance for individuals and small business owners alike as they look to rebuild,” said Oliver (D-Essex/Passaic). “This will help move our recovery forward, and any savings will undoubtedly prove beneficial to those affected.”

“This will provide relief to residents and small businesses, while helping spark economic activity in our state as we look to rebuild,” said Greenwald (D-Camden/Burlington). “As we move forward, we need to find ways to ease the recovery and rebuilding as much as possible, and this would put more money back in the pockets of those devastated by the storm.”

Under the bill, receipts from sales of the following goods made to storm victims for their primary residences, or to contractors on behalf of storms victims, on or after Oct. 30, 2012 but before Jan. 1, 2014 would be eligible for the rebate:

  • Construction materials, construction supplies, and construction equipment that are used or consumed by the storm victim, or a contractor on behalf of the storm victim, to reconstruct, repair, or rehabilitate the storm victim’s principal residence or small business that is located in this State and was damaged, destroyed, or lost as a result of wind, flooding, or other storm conditions caused by or attributable to Hurricane Sandy;
  • Carpeting and other flooring, heating and cooling systems, durable domestic appliances, and consumer electronic devices that are used or consumed to replace an identical or similar item of carpeting and other flooring, heating and cooling system, durable domestic appliance, and consumer electronic device that was damaged, destroyed, or lost as a result of wind, flooding, or other storm conditions caused by or attributable to Hurricane Sandy; and
  • Motor vehicles that are used or consumed to replace an identical or similar motor vehicle that is registered, or principally garaged, in this State and was damaged, destroyed, or lost as a result of wind, flooding, or other storm conditions caused by or attributable to Hurricane Sandy.

The bill provides that the tax rebate similarly applies to the receipts from sales of the following services rendered on or after Oct. 30, 2012 but before Jan. 1, 2014:

  • Services to install, maintain, service, or repair construction materials, construction supplies, and construction equipment that are used or consumed to reconstruct, repair, or rehabilitate a storm victim’s principal residence or small business that is located in this State and was damaged, destroyed, or lost as a result of wind, flooding, or other storm conditions caused by or attributable to Hurricane Sandy;
  • Services to install carpeting and other flooring, heating and cooling systems, durable domestic appliances, and consumer electronic devices that are used or consumed to replace an identical or similar item of carpeting and other flooring, heating and cooling system, durable domestic appliance, and consumer electronic device that was damaged, destroyed, or lost as a result of wind, flooding, or other storm conditions caused by or attributable to Hurricane Sandy;
  • Services to maintain, service, or repair the carpeting and other flooring, heating and cooling systems, durable domestic appliances, and consumer electronic devices of a storm victim that was damaged as a result of wind, flooding, or other storm conditions caused by or attributable to Hurricane Sandy; and
  • Services to maintain, service, or repair a motor vehicle of a storm victim that is registered, or principally garaged, in this State and was damaged as a result of wind, flooding, or other storm conditions caused by or attributable to Hurricane Sandy.

The bill provides that to receive the benefit of the tax rebate storm victims affected by Sandy and contractors making purchases on behalf of storm victims must pay the applicable tax at the point of purchase, then file a claim with the Director of the Division of Taxation in the Department of the Treasury for a rebate of the sales and use taxes paid.

The bill requires the director to return the rebate paid to the storm victim affected by Hurricane Sandy within six months of the date the complete claim is filed.

The bill requires the director to pay interest on rebates not returned to storm victims within that frame of time.


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