Oroho Bill that Would Provide Sales Tax Exemption to Small Businesses for Winterization Efforts Clears Senate

Legislation sponsored by Senator Steven Oroho that would provide a sales tax exemption to small businesses that winterized their operations during the pandemic was approved by the New Jersey Senate.

“The small businesses that line our Main Streets have been struggling to survive since the start of the pandemic,” said Oroho (R-24). “During that time, they have had to purchase an enormous amount of extra equipment in order to expand outdoor operations during the fall and winter seasons. My legislation will provide targeted sales tax relief to these small businesses so that they can continue to keep their doors open and serve their communities.”

The legislation, S-3740/A-4958, retroactively exempts small businesses—with fewer than 20 full-time employees—from paying the sales tax on qualified purchases made from September 1, 2020 through March 31, 2021. Qualified purchases include, but are not limited to, space heaters, tents, and products that melt snow and ice.

Small business will be required to submit an application along with receipts to the Division of Taxation in order to claim the exemption and then will receive a refund if approved.