New Jersey A 2125: Exempts personal protective equipment from sales and use tax.

Bill Text

ASSEMBLY, No. 2125

STATE OF NEW JERSEY
221st LEGISLATURE

PRE-FILED FOR INTRODUCTION IN THE 2024 SESSION

Sponsored by:
Assemblyman WILLIAM F. MOEN, JR.
District 5 (Camden and Gloucester)

Co-Sponsored by:
Assemblyman Verrelli

SYNOPSIS
Exempts personal protective equipment from sales and use tax.

CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.

A2125 MOEN
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EXPLANATION – Matter enclosed in bold-faced brackets [thus] in the above bill is
not enacted and is intended to be omitted in the law.

Matter underlined thus is new matter.

AN ACT exempting personal protective equipment from sales and 1
use tax, amending P.L.1980, c.105. 2
3
BE IT ENACTED by the Senate and General Assembly of the State 4
of New Jersey: 5
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1. Section 13 of P.L.1980, c.105 (C.54:32B-8.1) is amended to 7
read as follows: 8
13. a. Receipts from sales of the following sold for human use 9
are exempt from the tax imposed under the "Sales and Use Tax 10
Act": 11
(1) drugs sold pursuant to a doctor's prescription; 12
(2) over-the-counter drugs; 13
(3) diabetic supplies; 14
(4) prosthetic devices; 15
(5) tampons or like products; 16
(6) medical oxygen; 17
(7) human blood and its derivatives; 18
(8) durable medical equipment for home use; 19
(9) mobility enhancing equipment sold by prescription; [and] 20
(10) repair and replacement parts for any of the foregoing 21
exempt devices and equipment[.] ;and 22
(11) personal protective equipment. 23
b. As used in this section: 24
"Drug" means a compound, substance, or preparation, and any 25
component of a compound, substance, or preparation, other than 26
food and food ingredients, dietary supplements, or alcoholic 27
beverages: 28
(1) recognized in the official United States Pharmacopoeia, 29
official Homeopathic Pharmacopoeia of the United States, or 30
official National Formulary, and supplement to any of them; or 31
(2) intended for use in the diagnosis, cure, mitigation, treatment, 32
or prevention of disease; or 33
(3) intended to affect the structure or any function of the body. 34
"Over-the-counter-drug" means a drug that contains a label 35
which identifies the product as a drug, required by 21 CFR 201.66. 36
The label includes: 37
(1) a "Drug Facts" panel or 38
(2) a statement of the "active ingredient" or "active ingredients" 39
with a list of those ingredients contained in the compound, 40
substance or preparation. "Over-the-counter drug" does not include 41
a grooming and hygiene product. 42
"Grooming and hygiene product" is soap or cleaning solution, 43
shampoo, toothpaste, mouthwash, anti-perspirant, or sun tan lotion 44

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or screen, regardless of whether the item meets the definition of 1
"over-the-counter drug." 2
"Prescription" means an order, formula, or recipe issued in any 3
form of oral, written, electronic, or other means of transmission by 4
a duly licensed practitioner authorized by the laws of this State. 5
"Prosthetic device" means a replacement, corrective, or 6
supportive device including repair and replacement parts for same 7
worn on or in the body in order to: 8
(1) artificially replace a missing portion of the body; or 9
(2) prevent or correct a physical disability; or 10
(3) support a weak or disabled portion of the body. 11
"Durable medical equipment" means equipment, including repair 12
and replacement parts, but not including mobility enhancing 13
equipment, that: 14
(1) can withstand repeated use; 15
(2) is primarily and customarily used to serve a medical 16
purpose; 17
(3) is generally not useful to a person in the absence of illness or 18
injury; and 19
(4) is not worn in or on the body. 20
"Mobility enhancing equipment" means equipment, including 21
repair and replacement parts, other than durable medical equipment, 22
that: 23
(1) is primarily and customarily used to provide or increase the 24
ability to move from one place to another and which is appropriate 25
for use either at home or in a motor vehicle; and 26
(2) is not generally used by persons with typical mobility; and 27
(3) does not include any motor vehicle or equipment on a motor 28
vehicle normally provided by a motor vehicle manufacturer. 29
"Personal protective equipment" means coveralls, face shields, 30
gloves, gowns, masks, respirators, and other equipment designed to 31
protect the wearer from the spread of infection or illness. 32
c. Receipts from sales of supplies purchased for use in 33
providing medical services for compensation, but not transferred to 34
the purchaser of the service in conjunction with the performance of 35
the service, shall be considered taxable receipts from retail sales 36
notwithstanding the exemption from the tax imposed under the 37
"Sales and Use Tax Act" provided under this section. 38
(cf: P.L.2017, c.131, s.214) 39
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2. This act shall take effect immediately. 41
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STATEMENT 44
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This bill exempts personal protective equipment from taxation 46
under the “Sales and Use Tax Act.” The director of the Ce