This bill proposes an exemption from 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 legislation is set to take effect immediately and will apply to all sales receipts received from the first day of the fourth month following its enactment. This initiative aims to encourage the use of environmentally friendly reusable bags by alleviating the financial burden of sales tax on consumers.