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 fuel used for school buses that transport pupils to or from school or school-sponsored activities 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 ensuring that no prior refund has been issued. The bill defines "school buses" in accordance with existing law, encompassing vehicles operated by public agencies or charitable organizations for the transportation of children.

Additionally, the bill stipulates that the exemptions for school bus fuel will not be subject to review by the three-member review council established under P.L.2016, c.57, which monitors legislative actions that could impede the implementation of the petroleum products gross receipts tax. This exclusion aims to prevent any disruption in the imposition of the tax components while allowing the new exemptions to take effect. The bill is set to take effect immediately upon enactment, with the exemption applying to fuel used starting from the first day of the month following enactment.

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