Exempts grooming and hygiene products and certain baby products from sales and use tax.

A216

ASSEMBLY, No. 216

STATE OF NEW JERSEY

222nd LEGISLATURE

�

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Assemblywoman DAWN FANTASIA

District 24 (Morris, Sussex and Warren)

SYNOPSIS

���� Exempts grooming and hygiene products and certain
baby products from sales and use tax.

CURRENT VERSION OF TEXT

���� Introduced Pending Technical Review by Legislative
Counsel.

��

An Act
concerning exemptions from the sales and use tax,
amending P.L.1980, c.105, and supplementing P.L.1966, c.30 (C.54:32B-1 et
seq.).

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1.��� Section 13 of P.L.1980,
c.105 (C.54:32B-8.1) is amended to read as follows:

���� 13. a. Receipts from sales of
the following sold for human use are exempt from the tax imposed under the
"Sales and Use Tax Act":

���� (1)�� drugs sold pursuant to a
doctor's prescription;

���� (2)�� over-the-counter drugs;

���� (3)�� diabetic supplies;

���� (4)�� prosthetic devices;

���� (5)�� tampons or like
products;

���� (6)�� medical oxygen;

���� (7)�� human blood and its
derivatives;

���� (8)�� durable medical
equipment for home use;

���� (9)�� mobility enhancing
equipment sold by prescription;
[
and
]

���� (10) repair and replacement
parts for any of the foregoing exempt devices and equipment
; and

����
(11) grooming and hygiene
products
.

���� b.��� As used in this section:

���� "Drug" means a
compound, substance, or preparation, and any component of a compound,
substance, or preparation, other than food and food ingredients, dietary
supplements, or alcoholic beverages:

���� (1)�� recognized in the
official United States Pharmacopoeia, official Homeopathic Pharmacopoeia of the
United States, or official National Formulary, and supplement to any of them;
or

���� (2)�� intended for use in the
diagnosis, cure, mitigation, treatment, or prevention of disease; or

���� (3)�� intended to affect the
structure or any function of the body.

���� "Over-the-counter-drug"
means a drug that contains a label which identifies the product as a drug,
required by 21 CFR 201.66.� The label includes:

���� (1)�� a "Drug Facts"
panel or

���� (2)�� a statement of the
"active ingredient" or "active ingredients" with a list of
those ingredients contained in the compound, substance or preparation.
"Over-the-counter drug" does not include a grooming and hygiene
product.

���� "Grooming and hygiene
product" is soap or cleaning solution, shampoo, toothpaste, mouthwash,
anti-perspirant, or sun tan lotion or screen, regardless of whether the item
meets the definition of "over-the-counter drug."

���� "Prescription" means
an order, formula, or recipe issued in any form of oral, written, electronic,
or other means of transmission by a duly licensed practitioner authorized by
the laws of this State.

���� "Prosthetic device"
means a replacement, corrective, or supportive device including repair and
replacement parts for same worn on or in the body in order to:

���� (1)�� artificially replace a
missing portion of the body; or

���� (2)�� prevent or correct a
physical disability; or

���� (3)�� support a weak or
disabled portion of the body.

���� "Durable medical
equipment" means equipment, including repair and replacement parts, but
not including mobility enhancing equipment, that:

���� (1)�� can withstand repeated
use;

���� (2)�� is primarily and
customarily used to serve a medical purpose;

���� (3)�� is generally not useful
to a person in the absence of illness or injury; and

���� (4)�� is not worn in or on the
body.

���� "Mobility enhancing
equipment" means equipment, including repair and replacement parts, other
than durable medical equipment, that:

���� (1)�� is primarily and
customarily used to provide or increase the ability to move from one place to
another and which is appropriate for use either at home or in a motor vehicle;
and

���� (2)�� is not generally used by
persons with typical mobility; and

���� (3)�� does not include any
motor vehicle or equipment on a motor vehicle normally provided by a motor
vehicle manufacturer.

���� c.���� Receipts from sales of
supplies purchased for use in providing medical services for compensation, but
not transferred to the purchaser of the service in conjunction with the
performance of the service, shall be considered taxable receipts from retail
sales notwithstanding the exemption from the tax imposed under the "Sales
and Use Tax Act" provided under this section.

(cf: P.L.2017, c.131, s.214)

���� 2.��� (New section) a.�
Receipts from sales of the following baby products shall be exempt from the tax
imposed under the �Sales and Use Tax Act,� P.L.1966, c.30 (C.54:32B-1 et seq.):

���� (1)�� child restraint systems;

���� (2)�� cribs;

���� (3)�� nursing bottles,
nipples, and funnels; and

���� (4)�� strollers.

���� b.��� As used in this section:

���� "Child restraint system"
means any device that is designed to protect, hold, or restrain an infant or
young child while riding in a motor vehicle to prevent or minimize injury, and
conforms with federal motor vehicle safety standards.

���� "Crib" means a bed
or containment designed to accommodate an infant.

���� "Stroller" means a
non-motorized, wheeled vehicle designed to push or otherwise transport a young
child including, but not limited to, a carriage, folding-type umbrella
stroller, or full-size stroller.

���� 3.��� This act shall take
effect immediately and apply to receipts received from sales made on or after
the first day of the second month following the date of enactment.

STATEMENT

���� This bill provides sales and
use tax exemptions for the sales of grooming and hygiene products, as well as
the sales of certain baby products.�

���� Under current law, receipts
from the sales of grooming and hygiene products designed for human use are
subject to sales and use tax.� A �grooming and hygiene product� would qualify
for the sales and use tax exemption provided under the bill if the product is
soap or cleaning solution, shampoo, toothpaste, mouthwash, anti-perspirant, or
sun tan lotion or screen, regardless of whether the item is an
"over-the-counter drug" under State law.

���� The bill also provides a sales
and use tax exemption for select baby products, namely: child restraint
systems; cribs; nursing bottles, nipples, and funnels; and strollers.� The bill
defines a �child restraint system� as any device that is designed to protect,
hold, or restrain an infant or young child while riding in a motor vehicle to
prevent or minimize injury, and conforms with federal motor vehicle safety
standards.� A �crib� is defined under the bill as a bed or containment designed
to accommodate an infant.� Finally, the bill defines a �stroller� as a
non-motorized, wheeled vehicle designed to push or otherwise transport a young
child including, but not limited to, a carriage, folding-type umbrella
stroller, or full-size stroller.