summary
Introduced
02/20/2020
02/20/2020
In Committee
02/20/2020
02/20/2020
Crossed Over
Passed
Dead
01/11/2022
01/11/2022
Introduced Session
2020-2021 Regular Session
Bill Summary
This bill provides that credit unions regulated pursuant to the laws of this State are exempt from paying or charging sales and use tax. Federally chartered credit unions enjoy an exemption from state sales taxes and most other state taxes pursuant to the "Federal Credit Union Act" (12 U.S.C. s.1768). The sales and use tax imposed on State-chartered credit unions creates a competitive disadvantage compared to their federal counterparts. The exemption establishes sales tax parity between State and federally chartered credit unions. The exemption in the bill expires if federally chartered credit unions lose their current exemption from state sales taxes. Additionally, the exemption does not apply if the credit union is a purchaser or user of tangible personal property for the purpose of being a lessor.
AI Summary
This bill provides that credit unions regulated pursuant to the laws of New Jersey are exempt from paying or charging sales and use tax. Federally chartered credit unions already enjoy an exemption from state sales taxes, and this exemption establishes sales tax parity between state and federally chartered credit unions. The exemption expires if federally chartered credit unions lose their current exemption from state sales taxes. Additionally, the exemption does not apply if the credit union is a purchaser or user of tangible personal property for the purpose of being a lessor.
Committee Categories
Business and Industry
Sponsors (1)
Last Action
Introduced, Referred to Assembly Financial Institutions and Insurance Committee (on 02/20/2020)
bill text
bill summary
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bill summary
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bill summary
Document Type | Source Location |
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BillText | https://www.njleg.state.nj.us/2020/Bills/A3000/2855_I1.HTM |
Bill | https://www.njleg.state.nj.us/2020/Bills/A3000/2855_I1.PDF |
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