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A 1495

Relates to induction loop listening systems

2025 Regular Session Introduced by Jo Anne Simon and 1 co-sponsor

Expands a sales-tax exemption to cover materials and services used by contractors on affordable housing projects with all units income-restricted.

REFERRED TO GOVERNMENTAL OPERATIONS
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Bill Summary · A 1495

Summary — A-1495 (P.L.2024, c.3)

Status: Enacted (Approved March 20, 2024)
Introduced: January 9, 2024 — Sponsors: Assemblyman Robert J. Karabinchak et al.
Statutory change: Amends P.L.1980, c.105 (C.54:32B-8.22), Section 34

Purpose / Intent

To expand an existing sales-and-use-tax exemption so that receipts from sales of materials, supplies, and services made to contractors or repairmen for use on certain affordable housing projects are exempt from New Jersey sales and use tax. The intent is to lower construction and rehabilitation costs for housing projects in which all units are income-restricted.

Key provisions

  • Adds subsection (d) to section 34 of P.L.1980, c.105 (C.54:32B-8.22), exempting receipts from sales made to contractors or repairmen of materials, supplies, or services for exclusive use in erecting, improving, altering, or repairing real property owned/managed by housing sponsors engaged in affordable housing projects where all units are restricted for occupants with moderate, low, or very low incomes (as defined in P.L.1985, c.222).
  • Retains existing exemptions for:
    • Certain governmental, international, and charitable organizations;
    • Qualified enterprise-zone businesses;
    • Housing sponsors who obtained financing via the New Jersey Housing and Mortgage Finance Agency (and received other subsidies to achieve feasibility).
  • Requires applicants to qualify for the exemption under rules, regulations, and forms prescribed by the Director (Division of Taxation).
  • Effective date: the first day of the second month following enactment; applies to sales made on or after that effective date (committee amendment).

Who is affected

  • Beneficiaries: Housing sponsors/developers of affordable housing projects in which all units are income-restricted for moderate, low, or very low income households; the contractors and repairmen who purchase materials and supplies for these projects; suppliers of construction materials and services (indirectly).
  • State finance: Department of the Treasury (Division of Taxation) for administration and revenue collection.

Fiscal impact

  • Office of Legislative Services (OLS) estimates an indeterminate annual State revenue loss because current data are insufficient to quantify the volume of taxable sales covered by the new exemption.
  • OLS illustrative figure: roughly a $3.3 million reduction in State revenue for every $50 million in retail sales of materials, supplies, or services used on qualifying projects.

Legislative timeline / procedure

  • Introduced Jan 9, 2024; reported out of Assembly committees (with amendments) Jan–Feb 2024; passed Assembly Feb 12, 2024; passed Senate Mar 18, 2024; enrolled and approved as P.L.2024, c.3 on Mar 20, 2024.
  • Companion/related bills: S1484, S2634, A6432 (prior session).

Notes

  • Committee amendment clarified that the exemption applies where all units are "restricted" (not merely "intended") for eligible income groups, tightening eligibility criteria.
  • Claiming the exemption will be subject to administrative rules and forms established by the Director of the Division of Taxation.

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

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