New Jersey Assembly Bill A4865

New Jersey 2024-2025 Regular Session

• Introduced: 9/23/24
• Refer: 9/23/24

Caption

Establishes temporary sales tax exemption for small businesses impacted by ongoing public highway projects.

Impact

The bill aims to support small businesses that may face decreased customer access and potential financial losses due to nearby highway construction. By exempting these businesses from sales tax, the legislation seeks to alleviate some of the economic pressures they encounter during these periods. Businesses can apply to the Director of the Division of Taxation for an exemption certificate, which specifies the businesses eligible for this exemption and outlines the period during which it is valid, essentially from the start to the completion of the highway project.

Summary

Assembly Bill A4865 proposes a temporary sales tax exemption aimed at small businesses that are affected by ongoing public highway projects in New Jersey. The bill defines a small business as one that operates with no more than 50 full-time employees, is independently owned and has its principal place of business within the state. The exemption applies to retail sales and services conducted by these businesses in designated 'impacted construction zones', which are areas surrounding public highway projects where traffic flow is impeded or access to businesses is restricted.

Contention

While the intent of A4865 is to provide economic relief to small businesses, there could be concerns regarding the bureaucratic process required to obtain the exemption. The need for approval and documentation from the director may create hurdles for some small business owners, potentially leading to delays or challenges in accessing the benefits intended by the bill. Additionally, some may question the effectiveness of this temporary measure, particularly if the construction projects extend beyond expected timelines or impact a wider range of businesses than anticipated.