New Jersey A 1495: Exempts receipts from sales of materials, supplies, and services for certain affordable housing projects from sales and use tax.

Bill Text

(Sponsorship Updated As Of: 3/18/2024)
[Second Reprint]
ASSEMBLY, No. 1495

STATE OF NEW JERSEY
221st LEGISLATURE

PRE-FILED FOR INTRODUCTION IN THE 2024 SESSION

Sponsored by:
Assemblyman ROBERT J. KARABINCHAK
District 18 (Middlesex)
Assemblywoman YVONNE LOPEZ
District 19 (Middlesex)
Assemblywoman LISA SWAIN
District 38 (Bergen)
Senator JOSEPH A. LAGANA
District 38 (Bergen)
Senator PATRICK J. DIEGNAN, JR.
District 18 (Middlesex)

Co-Sponsored by:
Assemblywoman Speight, Assemblyman Wimberly, Assemblywoman Hall
and Senator Pou

SYNOPSIS
Exempts receipts from sales of materials, supplies, and services for certain
affordable housing projects from sales and use tax.

CURRENT VERSION OF TEXT
As reported by the Assembly Appropriations Committee on February 8,
2024, with amendments.

A1495 [2R] KARABINCHAK, LOPEZ
2

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.
Matter enclosed in superscript numerals has been adopted as follows:
1Assembly AHO committee amendments adopted January 29, 2024.
2Assembly AAP committee amendments adopted February 8, 2024.

AN ACT exempting receipts from the sales of materials, supplies, 1
and services for certain affordable housing projects from taxation 2
under the sales and use tax, and amending P.L.1980, c.105. 3
4
BE IT ENACTED by the Senate and General Assembly of the State 5
of New Jersey: 6
7
1. Section 34 of P.L.1980, c.105 (C.54:32B-8.22) is amended to 8
read as follows: 9
34. Receipts from sales made to contractors or repairmen of 10
materials, supplies or services for exclusive use in erecting structures 11
or building on, or otherwise improving, altering or repairing real 12
property of: 13
a. Organizations described in subsections (a) and (b) of section 9 14
of the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-9) that are 15
exempt from the tax imposed under the "Sales and Use Tax Act"; 16
b. Qualified businesses within an enterprise zone as authorized in 17
section 20 of the "New Jersey Urban Enterprise Zones Act," P.L.1983, 18
c.303 (C.52:27H-79);[and] 19
c. Housing sponsors who have obtained financing for housing 20
projects pursuant to the "New Jersey Housing and Mortgage Finance 21
Agency Law of 1983," P.L.1983, c.530 (C.55:14K-1 et seq.), which 22
projects have received other federal, State or local subsidies in order to 23
achieve financial feasibility; and 24
d. Housing sponsors engaged in affordable housing projects where 25
all of the units are
1[intended] restricted
1 for occupants with 26
moderate, low, or very low incomes as defined in P.L.1985, c.222 27
(C.52:27D-301 et al.) are exempt from the tax imposed under the 28
"Sales and Use Tax Act," provided any person seeking to qualify for 29
the exemption shall do so pursuant to such rules and regulations and 30
upon forms as shall be prescribed by the director. 31
For the purposes of this section, a qualified business within an 32
enterprise zone shall include any urban renewal entity established 33
pursuant to P.L.1961, c.40 (C.40:55C-40 et seq.), provided, however, 34
that the entity is the sole owner of an operating company which is a 35
qualified business pursuant to subsection c. of section 3 of P.L.1983, 36
c.303 (C.52:27H-62), and that the entity and its operating company are 37
situated within the same zone. 38
(cf: P.L.2006, c.34, s.2) 39
40
2. This act shall take effect
2[immediately] on the first day of the 41
second month next following the date of enactment
2 and shall apply to 42
sales made on or after the
2[date of enactment] effective date
2. 43