NJ A4425

Retail businesses in municipalities with ongoing public highway projects would receive a 50 percent exemption from New Jersey sales and use tax during the construction period.

Eligible businesses must apply to the Director of the Division of Taxation, who will verify the business operates within an impacted municipality and issue a written determination specifying which locations qualify.

"Public highway project" includes construction, improvement, or maintenance of State, county, or municipal highways, roads, bridges, or streets, including repairs from natural disasters or catastrophic failures.

"Retail business establishment" is defined as a small business with a fixed location offering goods or services, including charter boat services.

The Commissioner of Transportation must notify the Division of Taxation when projects begin or end, and the exemption terminates upon project completion with 30 days written notice to participating sellers.