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  • NJ A1729
  • Removes limousine services from sales and use tax imposition.
Introduced
(1/27/2016)
In Committee
(1/27/2016)
Crossed OverPassedSignedDead/Failed/Vetoed
2016-2017 Regular Session
This bill eliminates the imposition of the sales and use tax on transportation services originating in this State and provided by a limousine operator. These services were first subject to the sales and use tax under P.L.2006, c.44. That law broadened the base of the State's sales and use tax to provide for the imposition of tax on a wide-range of services which had been previously excluded from, or otherwise not subject to, taxation. Since then, however, the tax imposed on transportation services originating in this State and provided by a limousine operator has been significantly modified. The terms and conditions of a consent decree entered into by the State in January 2007 limited the imposition of the tax to receipts from the transportation of a passenger by a limousine or black car in which the trip begins with the pick up of a passenger in the State of New Jersey and ends with the discharge of a passenger in the State of New Jersey and takes place wholly within the State of New Jersey. The receipts from sales of services involving the pick-up of a passenger from a location in this State and the subsequent drop-off of that passenger at an airport in New York, a hospital in Philadelphia, or a conference in Delaware are, in other words, no longer subject to taxation. This bill eliminates the remaining portion of tax that applies to transportation services provided by limousine operators which begin and end and take place wholly within this State. In doing so, the bill eliminates the disparity in tax between interstate and intrastate transportation services created by the consent decree, and alleviates the administrative burden on businesses required to collect and remit tax on behalf of the State.
Not specified
Introduced, Referred to Assembly Appropriations Committee  (on 1/27/2016)
 
 

Date Chamber Action Description
1/27/2016 A Introduced, Referred to Assembly Appropriations Committee
Date Motion Yea Nay Other
None specified