Creates the "Paid-In Act"; exempts used books from sales use taxes, up to one hundred dollars per item

2025 Regular Session Introduced by Harry Bronson and 1 co-sponsor

Exempts used-book sales from sales and use taxes up to $100 per item, lowering tax on affordable used books for consumers; retailers must apply the cap.

PRINT NUMBER 7958A

Overview

Bill number: A 7958

Title: Creates the "Paid-In Act"; exempts used books from sales and use taxes, up to $100 per item

Primary goal: Establish a tax exemption for used books, capped at $100 per item, reducing the total tax burden on consumers purchasing used books.

Status and version: PRINT NUMBER 7958A (amended version)

Introduced: April 16, 2025

Prime sponsor: Linda Rosenthal

Co-sponsor: Harry B. Bronson

Related Senate companion: S 7644 (multiple listings indicate a companion bill exists)

What the bill would do

Exemption scope: The bill would exempt the sale of used books from sales and use taxes, but only up to $100 per item. This means:

If a used book costs $80, the tax would be fully exempt.
If a used book costs $120, the exemption would apply to the first $100, and tax would apply to the remaining $20 (subject to any applicable tax rate).

Tax types affected: Both the general sales tax and use tax on used book sales would be covered by the exemption, per the bill’s description.

Targeted item: Used books (not new books), with the per-item cap emphasizing affordability for typical used book purchases.

Who would be affected

Consumers buying used books (in-person or through retailers that collect sales/use tax) would benefit from reduced or eliminated tax on eligible portions of their purchases.

Retailers and marketplaces that sell used books would need to apply the exemption at the point of sale, potentially adjusting tax calculations for each item sold under the $100 cap.

Libraries, educational institutions, and used-book sellers may experience shifts in consumer behavior due to the tax savings on affordable used titles.

Procedural and timeline details

April 16, 2025: Introduced and referred to the Ways and Means committee.

May 21, 2025: Amended and recomitted to Ways and Means (listed twice, along with PRINT NUMBER 7958A).

The amendment and recommit actions indicate ongoing refinement and potential changes prior to final floor consideration.

Companion legislation: Senate S 7644 exists as a companion bill, indicating parallel consideration in the Senate.

Key provisions and considerations (highlights)

Per-item cap: The $100 cap is a defining feature; the tax treatment above $100 per item remains taxable.

Administrative implications: Retailers would need to implement the exemption for eligible used-book sales, including proper documentation and calculation of tax on the portion exceeding $100.

Revenue impact: The exemption could reduce state tax revenue from used-book sales; exact fiscal effects would depend on consumer demand, price distributions of used books, and total volume of eligible transactions. A fiscal note would typically accompany final consideration.

Next steps / How to track

Monitor updates on A 7958A as it moves through the Assembly (Ways and Means) and, separately, the Senate companion S 7644.

Look for any fiscal impact statements or committee reports that estimate revenue effects and administrative costs.

Consider public hearing texts for detailed provisions, definitions (e.g., what counts as a “used book”), and any exemptions or exclusions (e.g., whether certain used-book categories are treated differently).

Bill