Budget & Taxes (Sales Tax) in New Jersey

in committee · New Jersey · General Assembly Jan 13, 2026

A 1267: Concerns applicability of sales tax to certain horse-boarding charges in New Jersey.

This bill clarifies that horse boarding charges (renting stalls in barns or stables for horses) are **not subject to New Jersey's 6.625% sales tax**. It amends the tax code to explicitly exclude "the lease or rental of a stall in a barn, stable, or similar facility for the boarding or stabling of horses" from the definition of taxable "space for storage." This directly affects **horse boarding businesses and their customers** by ensuring these services remain tax-exempt. The change removes ambiguity about whether such charges fall under the existing tax on storage services, aligning with prior exemptions for similar arrangements.

Topics ✓ Budget & Taxes

Sub-Topics Sales Tax

in committee · New Jersey · General Assembly Feb 19, 2026

A 4426: Establishes EDA grant program to support increased business expenses incurred by certain businesses impacted by certain public highway projects; provides 50 percent sales and use tax exemption in impacted municipalities; appropriates $1 million.

This bill establishes a grant program administered by the New Jersey Economic Development Authority (EDA) to reimburse small retail businesses for increased operating costs caused by public highway projects. It specifically targets businesses with 50 or fewer employees located in areas where highway construction blocks traffic or access (called "impacted construction zones"). The grants cover the difference between a business's normal pre-project costs and its actual costs during the project period, based on equivalent business days. Additionally, the bill provides a 50% sales and use tax exemption for businesses in affected municipalities and appropriates $1 million to fund both programs.

Topics ✓ Budget & Taxes

Sub-Topics Sales Tax Tax Incentives

in committee · New Jersey · General Assembly Jan 13, 2026

A 3294: Exempts sales of pet medication purchased from sales and use tax.

This bill exempts certain medications for companion pets from New Jersey's sales and use tax. It applies specifically to drugs prescribed by licensed veterinarians or recognized by state pharmacy/veterinary boards for treating illness or injury in pets kept as household companions (not for research or business). The exemption covers medications that diagnose, cure, treat, or prevent disease, but excludes pet food, supplements, or products marketed as dietary aids. The tax change would take effect starting the first full quarter after the bill becomes law.

Topics ✓ Budget & Taxes

Sub-Topics Sales Tax

in committee · New Jersey · Senate Feb 9, 2026

S 3388: Authorizes creation of urban enterprise zone in Hoboken City.

S 3388, sponsored by Senator Raj Mukherji, authorizes the creation of an urban enterprise zone in Hoboken City. This bill amends existing law to designate Hoboken as a qualifying municipality for enterprise zone benefits, allowing businesses operating within the zone to qualify for tax incentives. To qualify, businesses must meet specific criteria, including having at least 25% of full-time employees who are residents of the zone, unemployed for six months, or low-income individuals meeting federal Workforce Investment Act standards. The zone would offer reduced sales tax collection benefits for qualifying businesses under the state's enterprise zone program, directly affecting businesses and workers in Hoboken's designated area.

Topics ✓ Budget & Taxes

Sub-Topics Sales Tax Tax Incentives Tags Economic Development

in committee · New Jersey · General Assembly Jan 13, 2026

A 1839: Reinstates annual sales tax holiday for retail sales of computers, school computer supplies, school supplies, school art supplies, school instructional materials, and sport or recreation equipment.

This bill reinstates an annual sales tax holiday for specific school-related purchases in New Jersey. It exempts retail sales of computers under $3,000, school computer supplies under $1,000, school supplies, art supplies, instructional materials, and sport/recreation equipment when bought by individuals for non-business use. The tax exemption applies during a defined 10-day period each year: from 12:01 a.m. on the ninth day before the first Monday in September through 11:59 p.m. on that Monday. The bill takes immediate effect and applies to sales occurring at least 30 days after enactment.

Topics ✓ Budget & Taxes ✓ Education

Sub-Topics Sales Tax Tax Incentives Curriculum

in committee · New Jersey · General Assembly Jan 13, 2026

A 2486: Requires development of online tax training for small and micro-businesses.

This New Jersey bill (A 2486) requires the Division of Taxation to create and maintain a free, online training program specifically for small and micro-businesses. The program will teach how to file and pay state taxes, including corporation business tax, gross income tax, and sales tax. It must be updated as tax laws change and made available on the Division's website. The bill directly affects small and micro-business owners who need help navigating state tax filing processes.

Topics ✓ Budget & Taxes

Sub-Topics Business Taxes Income Tax Sales Tax

in committee · New Jersey · Senate Feb 12, 2026

S 3516: Exempts medical alert devices and services from sales and use tax.

This bill (S 3516) adds medical alert devices and services to New Jersey’s list of items exempt from sales and use tax. It directly affects subscribers - primarily elderly or vulnerable individuals - who use these devices to contact emergency responders during medical emergencies. The key mechanism is amending tax law to explicitly exempt "medical alert devices" (electronic devices sending emergency signals) and "medical alert services" (including the device and access to an assistance operator who contacts responders) from taxation. This change makes these devices and services more affordable by removing the sales tax that previously applied. The exemption applies to both the devices themselves and associated services, aligning them with existing tax-exempt medical items like diabetic supplies.

Topics ✓ Budget & Taxes ✓ Healthcare

Sub-Topics Sales Tax

in committee · New Jersey · General Assembly Jan 13, 2026

A 3681: Exempts sales of passenger automobiles to honorably discharged veterans with service-connected disability from sales and use tax.

This bill exempts sales and use tax on passenger automobiles purchased by veterans who were honorably discharged and have a disability related to their military service, as confirmed by the U.S. Department of Veterans Affairs. It defines "passenger automobile" as any vehicle designed for passenger transport (excluding buses), and "service-connected disability" as an injury or illness incurred during active duty. The exemption applies to sales occurring two months after the bill's enactment, directly benefiting eligible veterans purchasing new or used cars. The law modifies New Jersey’s existing Sales and Use Tax Act to provide this tax relief.

Topics ✓ Budget & Taxes ✓ Veterans

Sub-Topics Procurement Sales Tax Veteran Healthcare

in committee · New Jersey · General Assembly Jan 13, 2026

A 1575: Changes State assistance to urban enterprise zones over seven years by increasing reduced sales tax in enterprise zones and dedicating increase to zone municipalities.

This bill (A 1575) modifies New Jersey's urban enterprise zone program by increasing the reduced sales tax rate applied within designated enterprise zones. The additional tax revenue generated from this increase would be dedicated directly to the municipalities where these zones are located. It affects qualifying municipalities that have enterprise zones meeting specific unemployment criteria, as defined in the law. The change aims to provide ongoing funding for municipal services and zone development projects through this dedicated tax revenue stream, rather than through other state funds. The bill amends the existing enterprise zone assistance fund provisions to implement this tax-based revenue source.

Topics ✓ Budget & Taxes

Sub-Topics Revenue Sales Tax Tax Incentives

in committee · New Jersey · General Assembly Jan 13, 2026

A 696: "Barnegat Bay Protection Act"; establishes Barnegat Bay Protection Fund, dedicates portion of sales tax on fertilizer, authorizes special license plates, and provides for donations.

This bill, the "Barnegat Bay Protection Act," would create a dedicated fund to protect Barnegat Bay by establishing three funding streams: a 1% tax on fertilizer sales, special "Protect Barnegat Bay" license plates (with a $50 application fee and $10 annual renewal), and voluntary donations collected during boat registrations, vessel renewals, and beach tag purchases. The fund, managed by the State Treasurer with input from the Environmental Protection Department, would finance watershed preservation and remediation projects, including public education campaigns. It directly affects residents and businesses in Ocean County (33 municipalities) and parts of Monmouth County (4 municipalities), where over 500,000 people live and visit. The bill focuses on generating ongoing revenue for bay restoration, not on new regulations or mandates.

Topics ✓ Budget & Taxes ✓ Environment

Sub-Topics Sales Tax Conservation Water Quality

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