"Tariff Transparency Act;" requires disclosure of final retail price attributable to tariffs and other import taxes.
If passed, A5922 will significantly impact how retail prices are structured and presented to consumers in New Jersey. Retail establishments will be mandated to disclose the tariff component of their prices either on price tags, online listings, or sales receipts. This enhanced transparency could influence consumer behavior and purchasing patterns as they become more aware of the taxes hidden within the prices of goods. Furthermore, retail establishments must maintain records related to tariff calculations, which would be subject to periodic compliance audits to ensure adherence to the new regulations.
Assembly Bill A5922, known as the 'Tariff Transparency Act,' introduces a requirement for retail establishments in New Jersey to disclose the portion of retail prices attributed to tariffs and trade-related import taxes. This legislative move aims to make previously hidden costs associated with tariffs visible to consumers, thereby enabling them to make more informed purchasing decisions. The act defines a 'retail establishment' as any business that sells products or services directly to consumers and specifies the types of disclosures that must be made regarding tariff costs.
The bill does outline certain exceptions, exempting retail establishments generating less than $500,000 in annual revenue and those products whose tariff impact is less than two percent of the retail price. This aspect has drawn both support and criticism. Proponents argue that it prevents undue hardship on smaller businesses while ensuring that larger retailers are held accountable. However, opposition may arise regarding the adequacy of these exemptions, as critics could argue that even small amounts of tariff impact can cumulatively affect consumer pricing and should be disclosed.
The act will take effect 90 days after enactment, with a phased compliance approach. Initially, compliance will be on a voluntary basis for six months, followed by a requirement for retailers with over $5 million in annual sales. The Director of the Division of Consumer Affairs will be responsible for developing further regulations to implement these requirements, including setting forth guidelines on how the tariff price components should be calculated and displayed.