This bill proposes an exemption from the petroleum products gross receipts tax (PPGRT) 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 confirming that no prior refund has been issued. The bill defines "school buses" in accordance with existing law, ensuring clarity in its application.

Additionally, the bill excludes these exemptions from the review process established by P.L.2016, c.57, which involves a three-member review council tasked with monitoring legislative actions that may affect the implementation of the PPGRT. This exclusion aims to prevent any interruption in the imposition of the tax components related to the exemptions for 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 first month following enactment.

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