Bill > A4758

Introduced Session

This bill establishes an annual "back-to-school" sales tax holiday in the State of New Jersey during August and September. During the two month period, the retail purchases of certain personal computers with a sales price of less than $3,000, school computer supplies with a sales price of less than $1,000 per item, and certain school supplies and equipment made by individual shoppers for non-business purposes will be exempt from the State sales tax. While the tax holiday is intended to provide financial relief to the students of New Jersey and their families, the general public may also make tax-free purchases for other nonbusiness uses during this time period. Annual and temporary sales tax holidays have been established in at least 19 states and the District of Columbia, and have gained popularity and support in several others. While some states have opted to celebrate tax holidays at the beginning of the calendar year or during seasonal holiday periods, a majority of states have established tax moratoria during some portion of the late summer and early autumn back-to-school period, as families prepare to send their children back to school. These tax holidays typically include exemptions for purchases of educational supplies, consumer products, and clothing items that allow students to face the challenges of the coming year. Under the bill, tax exempt school supplies and equipment during the holiday include: (1) school supplies, such as pens and pencils, notebooks, and binders; (2) school art supplies, such as paints and paintbrushes, clay, and glazes; (3) school instructional materials, such as maps, globes, reference books, and workbooks; (4) computers with a sales price of less than $3,000 per item; and (5) school computer supplies, such as computer storage equipment, printers, and personal digital assistants, with a sales price of less than $1,000 per item. Unlike other tax relief initiatives, the establishment of a back-to-school sales tax holiday in New Jersey could be developed and implemented with minimal administrative effort. It would provide an administratively simple and effective way to cut taxes for consumers that would require no special taxpayer forms or rebate applications. In addition, it would be economically beneficial to the State's merchants and small business owners by encouraging consumer spending during a period of time when demand is typically soft.

AI Summary

Committee Categories

Joe Danielsen (D)*,  John Azzariti (R),  Wayne DeAngelo (D),  Margie Donlon (D),  Luanne Peterpaul (D), 

Introduced, Referred to Assembly Education Committee (on 09/19/2024)

Official Document