Exempts sales of reusable carryout bags from sales and use tax.
Impact
The proposed legislation is expected to have a significant impact on state laws governing sales tax by introducing an exemption specifically for a new category of products. By exempting reusable bags from sales tax, the bill not only renders them more accessible to consumers but also aligns with wider state efforts to enhance sustainability practices. Should this bill pass, it would amend the existing 'Sales and Use Tax Act', allowing for a new classification of tax-exempt items that reflect the state's commitment to environmental stewardship.
Summary
Senate Bill 2985 seeks to promote environmental sustainability by exempting the sale of reusable carryout bags from state sales and use tax in New Jersey. This initiative is designed to encourage consumers to transition from single-use plastic bags to more sustainable options by lowering the financial barrier associated with purchasing reusable bags. The definition of 'reusable carryout bag' under the bill specifies that these bags must be made of certain durable materials and designed for multiple uses, thereby promoting eco-friendly alternatives aimed at reducing waste.
Contention
While the bill has garnered support from environmental advocacy groups that emphasize the importance of reducing plastic waste, there may be contention regarding its fiscal implications for state revenue. Critics could argue that exempting this category from sales tax could lead to decreased income for state budgets, potentially affecting funding for other public services. However, supporters assert that the long-term environmental benefits and shifts in consumer behavior towards more sustainable habits justify the exemption. The conversation around the bill may also touch on the efficacy of such measures in changing consumer habits and mitigating environmental impacts.
Amends applicability of law prohibiting sale and distribution of plastic and paper carryout bags to food banks and food pantries; appropriates $600,000.
Eliminates prohibition on provision of single-use paper bags by grocery stores for delivery orders; requires grocery stores and third party grocery delivery services to establish program for reuse of reusable bags used for delivery orders.