This bill amends current law to provide a sales tax exemption for the maintenance, servicing, or repairing of aircraft, as well as for the sale of machinery, equipment, and replacement parts installed on aircraft within the designated aviation district. Specifically, it adds a new provision that exempts charges for these services and sales from the Sales and Use Tax Act, thereby encouraging economic activity in the aviation sector. The aviation district is defined to include areas around the Atlantic City International Airport and the Federal Aviation Administration William J. Hughes Technical Center, as well as a one-mile radius surrounding these locations.

The bill aims to stimulate the growth of aircraft service and repair facilities in the aviation district, which is recognized as an economic incentive zone under various state economic development acts. By providing this sales tax exemption, the legislation seeks to diversify the local economy, which has historically relied on casino and tourism industries, and promote the development of aviation and technology-related businesses in the area. 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.

Statutes affected:
Introduced: 54:32B-8.35