Bill > A4425

Introduced Session

This bill provides for a 50 percent exemption to the sales and use tax in impacted municipalities in which ongoing public highway projects are located. Specifically, under the bill, a seller is entitled to an exemption to the extent of 50 percent of the tax imposed under the Sales and Use Tax Act, upon approval by the Director of the Division of Taxation (director), if the seller operates a retail business establishment within an impacted municipality during a relief period. To be entitled to the exemption, a seller is required to submit an application to the director to verify that the retail business establishment operates within an impacted municipality. The bill defines "retail business establishment" as a small business that maintains a fixed permanent location where goods are exhibited or services are offered, on-site or off-site, on an appointment or walk-in basis. A retail business establishment's offered services may include, but are not limited to, charter boat services. "Impacted municipality" is defined as any municipality in which an ongoing public highway project is located. Under the bill, a "public highway project" is any infrastructure project that involves the construction, improvement, or maintenance of a State, county, or municipal highway, road, bridge, or street, including, but not limited to, the repair or reconstruction of any highway, road, bridge, or street that has suffered serious damage as a result of a natural disaster or catastrophic failure from any external cause. "Relief period" means the period of time between the date on which a public highway project commences and the date on which the project concludes. Upon the commencement or completion of a public highway project, the bill requires the Commissioner of Transportation (commissioner) to provide written notice to the director attesting to the commencement or completion of the project, as applicable. Within 30 days following the bill's effective date, the commissioner is required to provide written notice to the director attesting to each ongoing public highway project within the State. Within 30 days of receiving the written notice from the commissioner concerning the completion of a public highway project, the bill requires the director to provide written notice to each seller for which such an exemption has been authorized indicating that the seller's exemption is terminated, as of the date of receipt of the written notice.

AI Summary

Committee Categories

Sean Kean (R)*, 

Introduced, Referred to Assembly Commerce and Economic Development Committee (on 02/19/2026)

Official Document