WeVote
Log In

Bill

Bill

S 4765

Relates to the timely scheduling of criminal trials

2025 Regular Session Introduced by Jamaal Bailey

In 2026, electric and gas bills are sales-tax free and the societal benefits charge is paused, delivering temporary savings to ratepayers before expiration in 2027.

REFERRED TO CODES
0
WeVote Research Nonpartisan
Bill Summary · S 4765

Summary of Bill S 4765

Note on title vs. content: The bill’s formal title appears to reference the timely scheduling of criminal trials, but the introduced text and statements describe a temporary suspension of certain charges on electric and gas utility bills. This summary reflects the introduced provisions related to utility charges.

Purpose and Intent

  • Provide temporary relief to electric and gas utility customers by suspending certain charges on utility bills for one year (2026), in response to recent increases in electric and gas rates and anticipated tax revenue changes.
  • Aims to reduce the burden on ratepayers during 2026 and offset rising energy costs through tax and surcharge relief.

Key Provisions

  1. Definitions

    • “Electric or gas public utility” means a public utility that distributes electric or gas service to end users.

  2. Tax Exemption on Utility Sales (2026)

    • From January 1, 2026 through December 31, 2026, the sale or use of electric or gas utility service is exempt from the Sales and Use Tax.
    • No seller may include Sales and Use Tax in the purchase price of electric or gas utility service during this period.

  3. Societal Benefits Charge (SBC) Prohibition (2026)

    • From January 1, 2026 through December 31, 2026, electric or gas utilities shall not charge customers any amount for the societal benefits charge.

  4. Effective Date and Sunset

    • The act takes effect immediately upon enactment and expires on January 1, 2027.

Affected Parties and Programs

  • Electric and gas utilities regulated under R.S.48:2-13.
  • Electric and gas utility customers (ratepayers), including residential and commercial customers.
  • State energy programs funded by the SBC (e.g., Clean Energy Program, Charge Up New Jersey Electric Vehicle Incentive Program) and Universal Services Funds (energy assistance programs).

Fiscal and Revenue Implications

  • Consumer Impact: Estimated savings per customer with the tax exemption and SBC relief during 2026:
    • Electric: $170–$233 per average residential bill
    • Gas: $178–$308 per average residential bill
  • State Revenue Context (preliminary)
    • Electric rate increases in June 2025 raise concerns about Sales and Use Tax collections; FY 2026 projected energy-related S&U tax receipts: about $1.15 billion (up roughly 15.7% from FY 2024).
    • SBC revenue projected for FY 2026: approximately $637.5 million.
  • The bill would temporarily forego these tax and surcharge revenues in 2026, shifting how funds are collected and allocated during that period.

Legislative Status and Process

  • Introduced: October 27, 2025
  • Current Status: Referred to CODES; also noted as referred to Senate Environment and Energy Committee
  • Sponsors: Latham Tiver (primary), Joseph Pennacchio (primary), Jamaal Bailey (primary)
  • Related bills in prior sessions: S 7016, S 2175, S 3936, S 2320

Practical Considerations

  • Temporary measure: Expires January 1, 2027; effects revert unless extended or made permanent by subsequent legislation.
  • Administrative: Utilities must implement the tax-exemption and SBC prohibition for 2026; ensure compliance in billing systems.
  • Policy trade-off: Short-term rate relief for customers versus lost state revenue and potential impact on energy programs funded by SBC and S&U taxes.

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

Sign in to ask a question.