Bill
Bill > A2866
NJ A2866
NJ A2866Exempts purchases of natural gas and electricity for residential customers from sales and use tax during coldest months of year.
summary
Introduced
01/13/2026
01/13/2026
In Committee
01/13/2026
01/13/2026
Crossed Over
Passed
Dead
Introduced Session
2026-2027 Regular Session
Bill Summary
This bill exempts from the State sales and use tax the retail sales of natural gas and electrical services for residential customers from December 1 of each year through April 15 of the succeeding calendar year. Public utilities that provide natural gas and electric services would be required, at the conclusion of each monthly billing cycle, to deduct from each customer's bill the amount that represents the sales and use tax. The State of New Jersey finds itself in the midst of a worsening affordability crisis. Inflation has made it harder to afford basic goods and services while disruptions brought on by the war in Ukraine have sent global energy costs soaring. Locally, this had led to an increase in residential energy costs with the New Jersey Board of Public Utilities recently approving double-digit rate increases for the State's four largest gas providers. These rate hikes ranged from 15 percent to 25 percent and, if implemented fully by gas providers, would represent an increase to the average household's energy bill of approximately $300 annually. With the regular occurrence of harsh winters in our area, it is imperative for the State to find ways to help ease this financial burden. By exempting the purchase of natural gas and electrical services from the sales and use tax for the duration of each winter season, residents will be able to find some measure of relief in the face of rising costs.
AI Summary
This bill exempts residential customers from paying State sales and use tax on their purchases of natural gas and electricity during the coldest months of the year, specifically from December 1st through April 15th of the following year. Public utilities that supply these services are required to automatically subtract the amount of this sales and use tax from each customer's monthly bill. This measure is intended to provide financial relief to New Jersey residents who are facing rising energy costs due to inflation and global energy market disruptions, which have already led to significant rate increases for natural gas providers in the state.
Committee Categories
Transportation and Infrastructure
Sponsors (1)
Last Action
Introduced, Referred to Assembly Telecommunications and Utilities Committee (on 01/13/2026)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2026/A2866 |
| BillText | https://pub.njleg.gov/Bills/2026/A3000/2866_I1.HTM |
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