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S 4658

Relates to prohibiting the use of funds, financial incentives or subsidies where facilities or property are used primarily for e-commerce storage and transfers, or the facilitation thereof

2025 Regular Session Introduced by Sean Ryan

Exempts specified baby products and FDA‑regulated sunscreen from New Jersey sales tax, lowering out‑of‑pocket costs for families from Oct 1, 2025, and reducing state revenue.

REFERRED TO LOCAL GOVERNMENTS
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WeVote Research Nonpartisan
Bill Summary · S 4658

Summary — S-4658 (2025)

Short title: Exempts certain baby products and sunscreen from New Jersey sales and use tax.

Purpose: To remove sales and use tax on a set of baby necessities and on FDA‑regulated sunscreen products, lowering out‑of‑pocket costs for purchasers of those items.

Key provisions

  • Adds a sales and use tax exemption for receipts from retail sales of:

    • Baby wash/soap, baby shampoos, baby lotions, baby powders
    • Child restraint systems (car seats)
    • Cribs (including bassinets and toddler beds)
    • Nursing bottles, nipples, and funnels
    • Strollers (non‑motorized wheeled infant transport such as umbrella or full‑size strollers)

  • Amends existing statute (P.L.1980, c.105, C.54:32B‑8.1) to add an exemption for:

    • Sunscreen — defined as an FDA‑regulated lotion, cream, spray, or gel primarily used to block/absorb/reflect ultraviolet radiation and prevent sunburn or sun‑related skin damage. The exemption expressly excludes products marketed or intended primarily as cosmetics (i.e., items intended for cleansing, beautifying, promoting attractiveness, or altering appearance).

  • Effective date language: The act “shall take effect immediately,” but applies to retail sales made on or after October 1, 2025.

Definitions included in the bill

  • Child restraint system: device designed to protect/hold/restrain an infant/young child in a motor vehicle that conforms with federal motor vehicle safety standards.
  • Crib: bed or sleeping enclosure for an infant/young child, including bassinets and toddler beds.
  • Stroller: non‑motorized, wheeled vehicle designed to push/transport an infant/young child.

Fiscal impact (Office of Legislative Services)

  • Estimated recurring State revenue reduction:
    • FY 2026 (partial year, assumed Oct. 1 start): $13.5 million
    • Baby products portion: ~$10.3 million (FY26)
    • Sunscreen portion: ~$3.2 million (FY26)
    • FY 2027: ~$16.5 million
    • FY 2028: ~$16.9 million
  • OLS methodology: combines industry market‑spend estimates, NJ birth statistics, and per‑capita sunscreen spending. Executive branch estimates (not formal note) were lower (~$9.0M annualized per later analysis; FY26 10‑month ~$7.5M).

Agencies affected: Department of the Treasury; reduction would lower receipts to the General Fund and the Property Tax Relief Fund.

Who is affected

  • Consumers purchasing the specified baby products and sunscreen in New Jersey (lower cost at point of sale).
  • Retailers (sales tax collection adjustments, point‑of‑sale system updates).
  • State finances (reduced sales and use tax revenue).
  • Department of the Treasury (administration of exemptions, guidance, audit).

Legislative status & timeline

  • Introduced: June 23, 2025 (Senate, sponsor: Sen. Sean Ryan).
  • Reported favorably by Senate Budget & Appropriations Committee: June 26, 2025.
  • Statutory applicability: retail sales on or after October 1, 2025.
  • Current docket status (per record provided): REFERRED TO LOCAL GOVERNMENTS (Assembly committee referral). Companion bills: A-5806 and A-4196. Prior-session related measures: S-8418, S-127.

If you want, I can prepare a one‑page explainer for affected retailers (what to change in registers/receipts) or a revenue sensitivity table showing different uptake assumptions.

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

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