This bill proposes an exemption from the petroleum products gross receipts tax and the motor fuel tax for fuel used in the operation of certain school buses. Specifically, the exemption applies to school buses that transport pupils to or from school or school-sponsored activities, operated by religious or charitable organizations, or by individuals under contract with public or governmental agencies. To benefit from this exemption, purchasers must pay the tax at the point of purchase and subsequently file a claim for a refund with the Director of the Division of Taxation, providing proof of payment and confirming that no previous refund has been issued. The bill defines "school buses" in accordance with existing law, ensuring clarity in its application.

Additionally, the bill includes provisions that exclude these exemptions from the review process established by P.L.2016, c.57, which is designed to monitor legislative actions that could impede the implementation of the petroleum products gross receipts tax. This means that the review council, composed of the State Treasurer, Legislative Budget and Finance Officer, and a public member, will not assess the exemptions related to school bus fuel. The bill is set to take effect immediately upon enactment, with the exemption applying to fuel used on or after the first day of the month following its enactment.

Statutes affected:
Introduced: 54:15B-2.1, 54:39-112, 52:18A-257