summary
Introduced
03/05/2018
03/05/2018
In Committee
03/05/2018
03/05/2018
Crossed Over
Passed
Dead
01/08/2020
01/08/2020
Introduced Session
2018-2019 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 exempts certain credit unions regulated under New Jersey law from paying or charging sales and use tax. The exemption establishes sales tax parity between state-chartered and federally-chartered credit unions, as federally-chartered credit unions already enjoy an exemption from state sales taxes under federal law. The exemption does not apply if the credit union is using the tangible personal property as a lessor. Additionally, the exemption would expire if federally-chartered credit unions were to lose their current exemption from state sales taxes.
Committee Categories
Business and Industry
Sponsors (2)
Last Action
Reviewed by the Sales Tax Review Commission Recommend to not enact (on 03/28/2018)
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| BillText | https://www.njleg.state.nj.us/2018/Bills/A4000/3544_I1.HTM |
| Bill | https://www.njleg.state.nj.us/2018/Bills/A4000/3544_I1.PDF |
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