NJ S3708

Retail businesses operating in municipalities with ongoing public highway projects qualify for a 50 percent exemption from New Jersey's sales and use tax during the construction period.

Eligible businesses must apply to the Director of the Division of Taxation and verify they operate a retail establishment with a fixed permanent location in an impacted municipality.

"Public highway project" includes construction, improvement, or maintenance of any State, county, or municipal highway, road, bridge, or street, including repairs following natural disasters or catastrophic failures.

The Commissioner of Transportation must notify the Division of Taxation when projects begin or end, and within 30 days of the law's effective date must report all ongoing highway projects statewide.

The tax exemption terminates when the director notifies the seller that the public highway project has been completed.