Budget & Taxes

New Jersey Assembly Bill 5486 establishes an annual sales tax holiday during the third weekend of August each year. During this two-day period, individuals purchasing tangible personal property for nonbusiness use at a price of $3,000 or less per item are exempt from state sales and use taxes. The exemption specifically excludes prepared food, alcoholic beverages, tobacco products, vapor products, cannabis items, and intoxicating hemp beverages. The bill also grants the Director of the Division of Taxation authority to adopt implementing regulations immediately upon filing, with those rules remaining effective for up to 180 days.

This New Jersey bill grants a 50% reduction in state sales and use tax for most retail purchases made by businesses located in municipalities where at least 99% of the area falls within the Highlands Region Preservation Area. The exemption applies to general goods but explicitly excludes motor vehicles, alcoholic beverages, digital products, and cigarettes. By lowering the tax burden on local retailers, the legislation aims to support the economic stability of communities whose growth is restricted by state preservation laws.

This New Jersey bill amends the Fiscal Year 2027 annual appropriations act to mandate that 2.5 percent of the funding allocated for the Working Class Families State Supplement be spent on informational and outreach activities. The primary goal of this requirement is to increase public awareness of the program, which provides free school breakfast and lunch benefits to working-class and middle-income families with household incomes between 186 and 224 percent of the federal poverty level. Under the current budget, the Department of Agriculture has $15 million for this supplement, meaning the new provision would direct approximately $375,000 specifically toward these outreach efforts.

New Jersey Assembly Bill 5546 establishes a three-year pilot program within the Economic Development Authority to provide state matching grants for local economic development projects in six selected municipalities across the northern, central, and southern regions of the state. The program offers a 100 percent state match for individual contributions ranging from $50 to $500, provided that project developers grant donors an approved economic or equity interest, such as profit-sharing arrangements or stock options. To participate, projects must partner with a qualified financial intermediary who serves as the custodian of funds and reports contributions to the authority. The bill appropriates $30 million from the General Fund to support these matching contributions and requires the authority to submit a report to the Governor and Legislature after 40 months evaluating the program's impact on local business ownership, job creation, and affordable housing.

New Jersey Senate Bill 4615 mandates universal newborn screening for congenital cytomegalovirus (cCMV) within 21 days of birth, unless a parent or legal guardian explicitly opts out. The bill requires health care facilities to use dried blood spot cards sent to the state's public health laboratories and ensures that infants with positive results are promptly referred for confirmatory testing and specialized medical evaluations, including hearing and eye exams. Additionally, it directs the Department of Health to create educational materials on cCMV prevention and treatment, which practitioners must provide and discuss with pregnant or preconception patients. The legislation appropriates state funds to cover compliance costs for facilities and patients while repealing a previous law that had conditioned this screening requirement on federal quality assurance standards.

New Jersey Senate Bill 4568 directs that 75% of unclaimed electric and gas utility deposits held in the Unclaimed Utility Deposits Trust Fund be paid annually to a statewide nonprofit energy assistance organization designated by the Board of Public Utilities. These funds must be used exclusively to restore or prevent the termination of utility service for ratepayers seeking temporary help. The bill also requires the Board of Public Utilities to allocate $2.5 million from societal benefits charge revenues in the fiscal year starting July 1, 2019, to provide grants for similar energy assistance purposes. Additionally, the board must submit a detailed report to the Governor and Legislature within 18 months evaluating the efficiency and accessibility of these utility assistance programs.

New Jersey Assembly Bill 5492 creates a new Office of Local Government Efficiency within the Department of Community Affairs to help local governments reduce costs and lower property tax burdens. The office will provide technical advice, develop guidance handbooks, and maintain an online resource center to encourage municipalities to use shared service agreements, joint contracts, or alternative delivery methods like private contracting and volunteers. Rutgers University is tasked with developing training courses on these efficiency strategies, while the state appropriates $250,000 from the Property Tax Relief Fund to support the office's operations.

New Jersey Assembly Bill 5508 allows state residents who claim a federal theft loss deduction to also deduct that same amount from their state gross income tax. The bill specifically targets victims of financial fraud, such as identity theft or investment scams, by permitting the Director of Taxation to waive penalties associated with late filings or unpaid taxes resulting from these schemes. Additionally, approved applicants can enter into installment payment agreements for any remaining tax debt, with terms lasting up to 120 months based on their financial circumstances. While an application is under review, the state must suspend collection activities and stop interest from accruing, provided the applicant submits required documentation in good faith.

New Jersey Assembly Bill 5551 provides state tax credits to small businesses that advertise with local news organizations, including local newspapers and broadcast radio or television stations. To qualify, a business must be independently owned, have its principal place of business in the state, and employ fewer than 50 full-time employees. The credit covers 80 percent of qualifying advertising expenses for tax periods beginning in 2027, up to a maximum of $5,000, and decreases to 50 percent with a $2,500 cap for periods starting in 2028. Unused credits may be carried forward for five years, and eligible local news organizations must employ at least one full-time local journalist while excluding certain nonprofit and political entities.

New Jersey Senate Bill 4687 directs state officials to apply for a federal waiver under the Affordable Care Act to create a Basic Health Program for low-income residents who do not qualify for Medicaid or NJ FamilyCare. The program would target individuals with incomes at or below 200 percent of the federal poverty guidelines and provide coverage through managed care organizations, including options with no out-of-pocket costs and reimbursement rates for providers that are higher than current Medicaid levels. If the federal waiver is approved, the New Jersey Health Insurance Premium Security Fund would serve as the repository for monies collected under the act to support this new insurance initiative.