Bill > S2960

Introduced Session

This bill provides an exemption from the petroleum products gross receipts tax (PPGRT) and the motor fuel tax for fuel used for the operation of certain school buses. The bill also excludes the exemptions from the review of legislative actions by the three-member review council established by P.L.2016, c.57, to prevent a cessation in the imposition of one of the components of the petroleum products gross receipts tax. Fuel Used for Certain School Buses. The bill provides an exemption from the petroleum products gross receipts tax and the motor fuel tax for fuel used for the operation of certain school buses. Under the bill, the exemption applies to fuel used for school buses operated for the transportation of pupils to or from school or a school-sponsored activity or event by a religious or charitable organization or corporation or by a person under contract with a public or governmental agency or a religious or other charitable organization or corporation. Under the bill, to receive the benefit of the exemption, purchasers of fuel used to operate a school bus for the transportation of pupils to or from school or a school-sponsored activity or event would be required to pay tax at the point of purchase and seek a refund of the taxes paid by the filing of a claim with the Director of the Division of Taxation in the Department of the Treasury. As is required under current law for certain other exempt uses of fuel, the claim for refund is required to be filed with the director by the purchaser providing proof that the tax has been paid, and the director is required to confirm that a refunds has not been previously issued. The bill defines "school buses" by reference to the definition of "school bus" under R.S.39:1-1. Under that section of law, a "school bus" is any motor vehicle operated by, or under contract with, a public or governmental agency, or religious or other charitable organization or corporation, or privately operated for the transportation of children to or from school for secular or religious education, which complies with the regulations of the New Jersey Motor Vehicle Commission affecting school buses, and includes "School Vehicle Type I" and "School Vehicle Type II." Under current law, consumers of fuel that are eligible for an exemption from the petroleum products gross receipts tax and the motor fuel tax are required to pay the tax at the point of purchase and seek a refund of the taxes paid by the filing of a claim with the Director of the Division of Taxation in the Department of the Treasury. The law requires the claim for refund to be filed by the consumer providing proof that the tax has been paid and a refund has not been previously issued. Exclusion from Review by the Review Council. The bill excludes the exemptions from the review of the three member review council established by P.L.2016, c.57 to prevent a cessation in the imposition of one of the components of the PPGRT. Under the bill, the provisions of current law that direct the three-member review council to review legislative actions and issue certifications to the Director of the Division of Taxation concerning implementation of P.L.2016, c.57 will not apply to those sections of the bill that exempt fuel used for certain school buses. Under current law, the three member review council (i.e., the State Treasurer, Legislative Budget and Finance Officer, and a third public member) is directed to monitor the actions of the Legislature on an ongoing basis for interference with the implementation of P.L.2016, c.57. If the implementation is impeded, the council is to certify this interference to the Director of the Division of Taxation and the director is to effectuate the cessation of the imposition of one of the components of the PPGRT. Effective Date. The bill is scheduled to take effect immediately upon enactment, but provides for the exemption to apply to the fuel used on or after the first day of the first month next following enactment.

Committee Categories

Jim Beach (D)*, 

Introduced in the Senate, Referred to Senate Transportation Committee (on 03/14/2024)

Official Document