Exempts sale of recreational safety helmets from sales and use tax.
Impact
If passed, S858 will amend the state tax code to provide this exemption, which could have a significant impact on sales of safety helmets within New Jersey. This legislation may also influence both consumer behavior and sales patterns in the market. Retailers are likely to see an uptick in sales of helmets as consumers flock to take advantage of the tax savings, resulting in wider adoption of safety gear among residents engaged in recreational activities.
Summary
Senate Bill S858 aims to exempt the sale of recreational safety helmets from the sales and use tax in New Jersey. The primary objective of this legislation is to promote public safety by making safety gear more affordable for consumers. The bill defines 'recreational safety helmets' as protective headgear meeting specific standards for various activities such as cycling, motorcycling, and winter sports. By reducing the financial burden on families purchasing helmets for their children or themselves, the bill seeks to encourage the use of safety gear, thereby potentially reducing accidents and injuries related to these activities.
Contention
While the bill is primarily focused on promoting public safety, it may not be without its detractors. Some may argue that tax exemptions can disproportionately affect state revenues, raising concerns over how the state will compensate for the loss of tax income. Furthermore, stakeholders in the retail sector might express varying opinions on the impacts of such a measure, particularly in relation to pricing strategies and market competition. Nevertheless, supporters emphasize the long-term benefits that arise from an accident reduction standpoint as more residents invest in safety equipment.
Exempts from "Sales and Use Tax Act" certain retail sales of computers, school computer supplies, school supplies, school art supplies, school instructional materials and sport or recreation equipment.