Exempts sales of reusable carryout bags from sales and use tax.
Impact
The impact of S1275 extends beyond mere consumer economics; it represents a legislative effort to curtail plastic waste in the state. By removing the sales tax on reusable bags, the bill incentivizes their use, potentially resulting in decreased reliance on single-use plastics. Overall, this move aligns with broader state-level environmental initiatives aimed at reducing waste and promoting recycling, thereby contributing positively to ecological health and sustainability.
Summary
Senate Bill No. 1275 seeks to exempt sales of reusable carryout bags from the sales and use tax in New Jersey. This legislative measure has been introduced with the intention of promoting the use of environmentally friendly reusable bags among consumers, effectively encouraging a shift away from single-use plastic bags. Proponents of the bill argue that the exemption would not only foster habits conducive to sustainability but also alleviate some financial burdens on consumers purchasing these bags.
Contention
Notably, discussions surrounding the bill may reveal contention regarding the effectiveness of tax exemptions as a tool for environmental policy. While supporters highlight the prospective environmental benefits, critics may question whether financial incentives alone can effectively change consumer behavior or if additional measures are necessary. Opposition could also arise from sectors concerned about the implications for state revenue as a result of the tax exemption.
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.