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AK

Bill

A 4963

Authorizes Secretary of Agriculture to declare agricultural emergency; establishes sales tax holiday on sale of fertilizer during agricultural emergency.

2026-2027 Regular Session Introduced by Andrea Katz

Allows the Secretary of Agriculture to declare a six-month agricultural emergency in NJ and temporarily exempt fertilizer sales from state sales tax.

Introduced, Referred to Assembly Agriculture and Natural Resources Committee
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Bill Summary · A 4963

Purpose and intent

  • Authorizes the Secretary of Agriculture to declare an agricultural emergency in New Jersey for up to six months.
  • During the emergency, the Secretary may establish a temporary sales tax holiday on the retail sale of fertilizer, exempting receipts from the state sales and use tax.
  • Provides the framework for criteria to trigger the emergency, potential geographic limits within the state, and termination of the emergency.

Key provisions and changes

  • Definitions

    • “Fertilizer” includes any plant nutrient formulations or products intended to promote growth, covering both commercial and specialty fertilizers (as defined by existing statutes).
    • “Secretary” means the Secretary of Agriculture.

  • Agricultural emergency declaration (Section 1)

    • The Secretary may declare an agricultural emergency for up to six months.
    • During the emergency, the Secretary can temporarily exempt fertilizer sales from the state sales tax, to the extent not conflicting with federal law or regulations, and notwithstanding any state/local law or contract.
    • The Secretary may set specific criteria (e.g., local or national events affecting fertilizer costs) to justify the emergency and can limit applicability to specific areas of the state.
    • The emergency remains in effect until the Secretary declares it terminated.

  • Administrative rulemaking (Section 2)

    • Allows immediate rulemaking by the Director of the Division of Taxation to implement the act, with rules effective upon filing with the Office of Administrative Law.
    • Initial regulatory effect lasts up to 180 days from filing; the regulations themselves remain in effect up to 18 months and may be amended or readopted thereafter under existing rules.

  • Implementation by Secretary (Section 3)

    • The Secretary must adopt necessary rules and regulations under the Administrative Procedure Act to implement the act.

  • Effective date

    • The act takes effect immediately upon enactment.

Who/what would be affected

  • Fertilizer retailers and sellers in New Jersey, who could provide a temporary sales tax holiday on fertilizer during an agricultural emergency.
  • Farmers and other agricultural producers who purchase fertilizer, potentially reducing costs during emergencies.
  • State Department of Treasury and Division of Taxation, which would implement and administer any tax exemption through administrative rules.
  • Local governments and private contracts affecting fertilizer sales might be superseded to the extent allowed (the act notes potential conflicts with existing laws or contracts).

Procedural and timeline aspects

  • Trigger: Secretary’s declaration of an agricultural emergency, based on defined criteria (to be established by the Secretary).
  • Duration: Up to six months for any declared emergency.
  • Tax relief: Temporary sales tax exemption on fertilizer receipts during the emergency period.
  • Geographic scope: Ability to limit applicability to specific areas within New Jersey.
  • Sunset/termination: The emergency ends when the Secretary declares termination.
  • Rulemaking timetable: Immediate regulatory action by the Division of Taxation upon filing; initial rules valid up to 180 days, with a maximum regulatory period of 18 months from filing, subject to renewal or modification.

Notes

  • The bill follows a framework similar to other emergency declarations, but specifically targets fertilizer costs during agricultural disruptions.
  • It creates a mechanism to adjust tax policy swiftly in response to conditions affecting fertilizer affordability, while aligning with federal obligations and streamlined state administrative processes.

Compiled from official sources — confirm details with the bill’s official record.

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