This bill proposes an exemption from the sales and use tax for the sale of reusable carryout bags in New Jersey. Specifically, it defines a reusable carryout bag as one that is made from materials such as polypropylene, PET nonwoven fabric, nylon, cloth, or hemp, features stitched handles, and is designed for multiple uses. The exemption aims to encourage the use of environmentally friendly bags and reduce reliance on single-use plastic bags.

The act is set to take effect immediately and will apply to all sales made on or after the first day of the fourth month following its enactment. This legislative change is intended to promote sustainability and support consumers in making eco-friendly choices by alleviating the financial burden associated with purchasing reusable bags.