New Jersey Assembly Bill A5453

New Jersey 2022-2023 Regular Session

• Introduced: 5/11/23
• Refer: 5/11/23

Caption

Exempts cribs, child restraint systems, nursing bottles, and strollers from sales and use tax.

Impact

The introduction of A5453 is expected to modify the existing sales tax structure under the 'Sales and Use Tax Act' in New Jersey. If passed, this bill would provide significant fiscal relief to families by eliminating additional costs associated with necessary baby items. This legislative change could lead to an increase in sales of these exempt products, as more families may feel encouraged to purchase safe and reliable equipment for their infants without the added tax burden. This bill acknowledges the financial challenges faced by families, particularly those with newborns or small children.

Summary

Assembly Bill A5453 proposes to exempt the sale of specific baby products from sales and use tax in New Jersey. The products included in this exemption are cribs, child restraint systems, nursing bottles and nipples, and strollers. The bill aims to lessen the financial burden on families by creating tax relief for essential infant care items, thus supporting new parents in managing the costs associated with raising infants. By making these purchases exempt from taxes, the state intends to decrease the overall expenditure for items considered necessary for child safety and care.

Contention

While many support the bill's intent to alleviate costs for parents, some opposition has arisen around concerns such as the potential loss of tax revenue that could otherwise benefit state-funded programs. Critics may argue that exempting specific items from sales tax could lead to budgeting issues for broader state funding. Furthermore, the bill's implications on retail pricing structures and the equitable distribution of tax relief among families with varying income levels could stir debate, raising questions about fairness and effectiveness in addressing the needs of all households in New Jersey.