ASSEMBLY, No. 5449 STATE OF NEW JERSEY 221st LEGISLATURE INTRODUCED MARCH 17, 2025
ASSEMBLY, No. 5449
STATE OF NEW JERSEY
221st LEGISLATURE
INTRODUCED MARCH 17, 2025
Sponsored by: Assemblywoman AURA K. DUNN District 25 (Morris and Passaic) Assemblywoman VERLINA REYNOLDS-JACKSON District 15 (Hunterdon and Mercer) Assemblywoman SHANIQUE SPEIGHT District 29 (Essex and Hudson) Co-Sponsored by: Assemblyman Venezia SYNOPSIS Exempts oral healthcare products from sales and use tax. CURRENT VERSION OF TEXT As introduced.
Sponsored by:
Assemblywoman AURA K. DUNN
District 25 (Morris and Passaic)
Assemblywoman VERLINA REYNOLDS-JACKSON
District 15 (Hunterdon and Mercer)
Assemblywoman SHANIQUE SPEIGHT
District 29 (Essex and Hudson)
Co-Sponsored by:
Assemblyman Venezia
SYNOPSIS
Exempts oral healthcare products from sales and use tax.
CURRENT VERSION OF TEXT
As introduced.
An Act exempting oral healthcare products from the sales and use tax and amending P.L.1980, c.105. Be It Enacted by the Senate and General Assembly of the State of New Jersey: 1. Section 13 of P.L.1980, c.105 (C.54:32B-8.1) is amended to read as follows: 13. a. Receipts from sales of the following sold for human use are exempt from the tax imposed under the "Sales and Use Tax Act": (1) drugs sold pursuant to a doctor's prescription; (2) over-the-counter drugs; (3) diabetic supplies; (4) prosthetic devices; (5) tampons or like products; (6) medical oxygen; (7) human blood and its derivatives; (8) durable medical equipment for home use; (9) mobility enhancing equipment sold by prescription; [and] (10) repair and replacement parts for any of the foregoing exempt devices and equipment; and (11) oral healthcare products for human use. b. As used in this section: "Drug" means a compound, substance, or preparation, and any component of a compound, substance, or preparation, other than food and food ingredients, dietary supplements, or alcoholic beverages: (1) recognized in the official United States Pharmacopoeia, official Homeopathic Pharmacopoeia of the United States, or official National Formulary, and supplement to any of them; or (2) intended for use in the diagnosis, cure, mitigation, treatment, or prevention of disease; or (3) intended to affect the structure or any function of the body. "Over-the-counter-drug" means a drug that contains a label which identifies the product as a drug, required by 21 CFR 201.66. The label includes: (1) a "Drug Facts" panel or (2) a statement of the "active ingredient" or "active ingredients" with a list of those ingredients contained in the compound, substance or preparation. "Over-the-counter drug" does not include a grooming and hygiene product. "Grooming and hygiene product" is soap or cleaning solution, shampoo, [toothpaste, mouthwash,] anti-perspirant, or sun tan lotion or screen, regardless of whether the item meets the definition of "over-the-counter drug." "Grooming and hygiene product" does not include a oral healthcare product for human use. "Oral healthcare product for human use" means powered and manual toothbrushes, toothpaste, mouthwash, dental floss, dental floss picks, dental picks, interdental brushes, tooth powders, and oral irrigators, which items are designed to maintain oral health, regardless of whether the items meet the definition of an over-the-counter drug. "Oral healthcare products for human use" does not include food and food ingredients, dietary supplements, or durable medical equipment. "Prescription" means an order, formula, or recipe issued in any form of oral, written, electronic, or other means of transmission by a duly licensed practitioner authorized by the laws of this State. "Prosthetic device" means a replacement, corrective, or supportive device including repair and replacement parts for same worn on or in the body in order to: (1) artificially replace a missing portion of the body; or (2) prevent or correct a physical disability; or (3) support a weak or disabled portion of the body. "Durable medical equipment" means equipment, including repair and replacement parts, but not including mobility enhancing equipment, that: (1) can withstand repeated use; (2) is primarily and customarily used to serve a medical purpose; (3) is generally not useful to a person in the absence of illness or injury; and (4) is not worn in or on the body. "Mobility enhancing equipment" means equipment, including repair and replacement parts, other than durable medical equipment, that: (1) is primarily and customarily used to provide or increase the ability to move from one place to another and which is appropriate for use either at home or in a motor vehicle; and (2) is not generally used by persons with typical mobility; and (3) does not include any motor vehicle or equipment on a motor vehicle normally provided by a motor vehicle manufacturer. c. Receipts from sales of supplies purchased for use in providing medical services for compensation, but not transferred to the purchaser of the service in conjunction with the performance of the service, shall be considered taxable receipts from retail sales notwithstanding the exemption from the tax imposed under the "Sales and Use Tax Act" provided under this section. (cf: P.L.2017, c.131, s.214.) 2. This act shall take effect on the first day of the second month after the date of enactment. STATEMENT This bill exempts oral healthcare products from the New Jersey sales and use tax. These products are defined to include powered and manual toothbrushes, toothpaste, mouthwash, dental floss, dental floss picks, dental picks, interdental brushes, tooth powders, and oral irrigators, which items are designed to maintain oral health, regardless of whether the items meet the definition of an over-the-counter drug. This definition follows a recently adopted Streamline Sales and Use Tax Agreement (SSUTA) amendment that adds a definition for oral healthcare products that member states can use if they wish to exempt those products from their respective sales and use taxes. The SSUTA is a multistate agreement that allows businesses operating in various states to more easily comply with the sales and use taxes imposed by member states. One of the ways in which the SSUTA simplifies the administration of sales and use tax laws is by requiring member states to adopt common definitions for the products that are subject to tax, thereby providing greater uniformity among member states' tax bases. Also, member states are permitted to exempt products from their respective sales and use tax provided that those exemptions are made in accordance with the product definitions contained within the SSUTA. New Jersey has been a member of the SSUTA since 2005.
An Act exempting oral healthcare products from the sales and use tax and amending P.L.1980, c.105.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 13 of P.L.1980, c.105 (C.54:32B-8.1) is amended to read as follows:
13. a. Receipts from sales of the following sold for human use are exempt from the tax imposed under the "Sales and Use Tax Act":
(1) drugs sold pursuant to a doctor's prescription;
(2) over-the-counter drugs;
(3) diabetic supplies;
(4) prosthetic devices;
(5) tampons or like products;
(6) medical oxygen;
(7) human blood and its derivatives;
(8) durable medical equipment for home use;
(9) mobility enhancing equipment sold by prescription; [and]
(10) repair and replacement parts for any of the foregoing exempt devices and equipment; and
(11) oral healthcare products for human use.
b. As used in this section:
"Drug" means a compound, substance, or preparation, and any component of a compound, substance, or preparation, other than food and food ingredients, dietary supplements, or alcoholic beverages:
(1) recognized in the official United States Pharmacopoeia, official Homeopathic Pharmacopoeia of the United States, or official National Formulary, and supplement to any of them; or
(2) intended for use in the diagnosis, cure, mitigation, treatment, or prevention of disease; or
(3) intended to affect the structure or any function of the body.
"Over-the-counter-drug" means a drug that contains a label which identifies the product as a drug, required by 21 CFR 201.66. The label includes:
(1) a "Drug Facts" panel or
(2) a statement of the "active ingredient" or "active ingredients" with a list of those ingredients contained in the compound, substance or preparation. "Over-the-counter drug" does not include a grooming and hygiene product.
"Grooming and hygiene product" is soap or cleaning solution, shampoo, [toothpaste, mouthwash,] anti-perspirant, or sun tan lotion or screen, regardless of whether the item meets the definition of "over-the-counter drug." "Grooming and hygiene product" does not include a oral healthcare product for human use.
"Oral healthcare product for human use" means powered and manual toothbrushes, toothpaste, mouthwash, dental floss, dental floss picks, dental picks, interdental brushes, tooth powders, and oral irrigators, which items are designed to maintain oral health, regardless of whether the items meet the definition of an over-the-counter drug. "Oral healthcare products for human use" does not include food and food ingredients, dietary supplements, or durable medical equipment.
"Prescription" means an order, formula, or recipe issued in any form of oral, written, electronic, or other means of transmission by a duly licensed practitioner authorized by the laws of this State.
"Prosthetic device" means a replacement, corrective, or supportive device including repair and replacement parts for same worn on or in the body in order to:
(1) artificially replace a missing portion of the body; or
(2) prevent or correct a physical disability; or
(3) support a weak or disabled portion of the body.
"Durable medical equipment" means equipment, including repair and replacement parts, but not including mobility enhancing equipment, that:
(1) can withstand repeated use;
(2) is primarily and customarily used to serve a medical purpose;
(3) is generally not useful to a person in the absence of illness or injury; and
(4) is not worn in or on the body.
"Mobility enhancing equipment" means equipment, including repair and replacement parts, other than durable medical equipment, that:
(1) is primarily and customarily used to provide or increase the ability to move from one place to another and which is appropriate for use either at home or in a motor vehicle; and
(2) is not generally used by persons with typical mobility; and
(3) does not include any motor vehicle or equipment on a motor vehicle normally provided by a motor vehicle manufacturer.
c. Receipts from sales of supplies purchased for use in providing medical services for compensation, but not transferred to the purchaser of the service in conjunction with the performance of the service, shall be considered taxable receipts from retail sales notwithstanding the exemption from the tax imposed under the "Sales and Use Tax Act" provided under this section.
(cf: P.L.2017, c.131, s.214.)
2. This act shall take effect on the first day of the second month after the date of enactment.
STATEMENT
This bill exempts oral healthcare products from the New Jersey sales and use tax. These products are defined to include powered and manual toothbrushes, toothpaste, mouthwash, dental floss, dental floss picks, dental picks, interdental brushes, tooth powders, and oral irrigators, which items are designed to maintain oral health, regardless of whether the items meet the definition of an over-the-counter drug. This definition follows a recently adopted Streamline Sales and Use Tax Agreement (SSUTA) amendment that adds a definition for oral healthcare products that member states can use if they wish to exempt those products from their respective sales and use taxes.
The SSUTA is a multistate agreement that allows businesses operating in various states to more easily comply with the sales and use taxes imposed by member states. One of the ways in which the SSUTA simplifies the administration of sales and use tax laws is by requiring member states to adopt common definitions for the products that are subject to tax, thereby providing greater uniformity among member states' tax bases. Also, member states are permitted to exempt products from their respective sales and use tax provided that those exemptions are made in accordance with the product definitions contained within the SSUTA. New Jersey has been a member of the SSUTA since 2005.