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Bill

A 4788

Creates a New York state route 878, Nassau Expressway study

2025 Regular Session Introduced by Ari Brown and 3 co-sponsors

Exempts residential natural gas and electricity from sales tax, with utilities showing a monthly tax deduction on bills and regulators issuing implementing rules.

REFERRED TO TRANSPORTATION
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Bill Summary · A 4788

Summary of Assembly Bill A 4788 (New Jersey)

Note on title: The bill text provided appears to address a sales tax exemption for residential natural gas and electricity in New Jersey, not a New York route study. This summary follows the introduced New Jersey language and status.

What the bill would do

  • Exemption: Exempts receipts from the retail sale of natural gas and electricity for residential use from New Jersey’s Sales and Use Tax Act.
  • Billing mechanism: Requires public utilities that provide natural gas or electricity to deduct the amount of sales and use tax from each residential customer’s bill at the end of every monthly billing cycle.
  • Rulemaking: The Director of the Division of Taxation, in consultation with the Board of Public Utilities, would adopt rules and regulations as needed to implement the exemption under the Administrative Procedure Act.
  • Effective date: The act is stated to take effect immediately upon enactment.

Key provisions

  • Section 1(a): Residential retail sales of natural gas and electricity are tax-exempt from the state sales and use tax.
  • Section 1(b): Utilities must reflect a deduction on customer bills representing the sales and use tax portion of the charge, effectively passing through the tax exemption to residential customers in their monthly statements.
  • Section 1(c): Administrative rulemaking process to implement the exemption.
  • Section 2: Immediate effectiveness upon enactment.

Who is affected

  • Residential customers of public utilities that provide natural gas and/or electricity in New Jersey.
  • Public utilities themselves (as the entities responsible for applying the tax deduction on monthly bills).
  • The New Jersey Department of the Treasury, Division of Taxation (administrative rules).
  • The Board of Public Utilities (consultation on rulemaking).

Legislative status and actions

  • Introduced: September 19, 2024 (Assembly).
  • Initial committee reference: Assembly Telecommunications and Utilities.
  • Updated status: Referred to Transportation on February 6, 2025 (listed twice).
  • Sponsors: Primary – Eric Brown; Cosponsors – Edward Ra, Doug Smith, Michael J. Fitzpatrick.
  • Related or companion measures: A 5876 (prior-session), S 6586 (companion).

Fiscal and policy considerations

  • Revenue impact: The exemption would reduce state sales tax collections on residential energy purchases, potentially increasing the net cost to the state budget unless offset by other revenue or administrative efficiency.
  • Administrative/logistical considerations: Utilities must implement a consistent monthly deduction process on bills; the state would issue implementing regulations.

Practical notes for readers

  • The bill targets residential energy use, aiming to provide relief from sales tax costs on gas and electricity.
  • Implementation hinges on regulatory rulemaking and the cooperation of utilities to display the tax-portion deduction clearly on bills.

If you’d like, I can add a brief comparison to related bills (A 5876, S 6586) or project potential fiscal implications based on typical energy consumption scenarios.

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

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