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Bill

A 2732

Exempts purchases made by civic associations from sales and compensating use tax

2025 Regular Session Introduced by Ed Ra

The bill exempts sales and compensating use tax on purchases by qualifying civic associations.

REFERRED TO WAYS AND MEANS
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WeVote Research Nonpartisan
Bill Summary · A 2732

Summary of Bill A 2732 – Exempts purchases made by civic associations from sales and compensating use tax

Overview

Bill A 2732 would provide a sales tax and compensating use tax exemption for purchases made by civic associations. Introduced January 22, 2025, the bill is currently referred to the Ways and Means committee for consideration. The primary sponsor is Assemblymember Edward Ra. A Senate companion exists as S 1864 (listed as a companion bill).

What the bill would do

  • Exemption from sales tax and compensating use tax for purchases made by “civic associations.”
  • The exemption would apply to qualifying purchases at the point of sale, meaning sellers would not collect sales tax on eligible transactions, and purchasers would not owe compensating use tax on those items.
  • The bill would provide definitions and criteria for what constitutes a “civic association” and which purchases qualify, in the full text (the summary here does not include the exact statutory definitions).

Who would be affected

  • Civic associations that meet the bill’s definition would be the primary beneficiaries, as their eligible purchases would be exempt from sales and compensating use tax.
  • Vendors and retailers would need to apply the exemption for qualifying purchases when selling to civic associations.
  • Tax administrations would check compliance and apply the exemption consistent with the bill’s definitions and provisions once enacted.

Key provisions and considerations (based on available information)

  • The core provision is a tax exemption targeted to civic associations’ purchases.
  • The bill would define eligibility and scope (i.e., which organizations qualify and which purchases are covered) in the text of the statute.
  • Details such as eligibility documentation, thresholds, or sunset provisions are not provided in the summary and would require the full bill text to confirm.

Fiscal and policy impact (high-level)

  • A tax exemption for purchases by civic associations would reduce state and possibly local tax revenues corresponding to those exempted transactions.
  • The measure would require analysis by Ways and Means to estimate revenue impact and administrative effects, given the new exemption criteria and oversight.

Legislative path and timeline

  • Status: Referred to Ways and Means (January 22, 2025).
  • Given its reference to Ways and Means, the bill is in committee for revenue-related review and discussion of fiscal implications.
  • A companion bill exists in the Senate (S 1864), indicating parallel consideration across chambers.

Notes

  • Specific definitions, eligible purchases, documentation requirements, and any exceptions will be found in the full bill text.
  • The companion Senate bill may provide parallel language and ensure alignment between the two chambers if enacted.

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

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