Bill > S987

Introduced Session

This bill exempts the paraffin used to manufacture candles from New Jersey's petroleum products gross receipts tax, to eliminate a competitive disadvantage to New Jersey candle manufacturers. At the same time that the home décor market for candles has been expanding, United States manufacturers have been under assault from foreign production: a federal antidumping duty has been in effect since 1986 on candles manufactured in China, to combat aggressive "dumping" in the U.S. market by Chinese manufacturers. The petroleum products gross receipts tax puts New Jersey candle manufacturers at a particular disadvantage in this market. Candles are typically composed of paraffin wax, a petroleum product subject to the New Jersey tax, so candles made in New Jersey are made of paraffin that has been taxed, whether the candles are sold in New Jersey or elsewhere. Candles themselves are classified by regulation as a finished manufactured product, and so a candle manufactured outside of the New Jersey is not subject to the tax, even if sold in New Jersey. New Jersey manufacturers must compete while carrying a tax burden that their competition does not bear. There are still several hundred candle manufacturing jobs in New Jersey; this bill will end the tax disadvantage to New Jersey manufacturing before those last few are driven out of the State.

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Michael Doherty (R)*, 

Introduced in the Senate, Referred to Senate Commerce Committee (on 01/30/2020)

Official Document