Eliminates sales tax on baby necessities and sunscreen.

A2294

ASSEMBLY, No. 2294

STATE OF NEW JERSEY

222nd LEGISLATURE

�

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Assemblywoman MARGIE DONLON, M.D.

District 11 (Monmouth)

Assemblywoman ANDREA KATZ

District 8 (Atlantic and Burlington)

Assemblywoman MITCHELLE DRULIS

District 16 (Hunterdon, Mercer, Middlesex and Somerset)

Assemblywoman ELIANA PINTOR MARIN

District 29 (Essex and Hudson)

Co-Sponsored by:

Assemblywomen Reynolds-Jackson, Murphy, Assemblyman
Sampson, Assemblywomen Peterpaul, Speight and Quijano

SYNOPSIS

���� Eliminates sales tax on baby necessities and
sunscreen.

CURRENT VERSION OF TEXT

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

��

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

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

���� 1.� (New section) a.� Receipts
from the retail sales of the following 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)�� baby wash or soap, baby
shampoos, baby lotions, and baby powders;

���� (2)�� child restraint systems;

���� (3)�� cribs;

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

���� (5)�� 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 sleeping
enclosure designed to accommodate an infant or young child, including bassinets
and toddler beds.

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

���� 2.��� 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)� sunscreen.

���� 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,
or

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.

����
"Sunscreen" means
a lotion, cream, spray, or gel regulated by the federal Food and Drug
Administration that is primarily used for purposes of absorbing, reflecting, or
scattering ultraviolet radiation and preventing sunburn or any sun-related skin
damage.� Sunscreen does not include products marketed or intended for use as
cosmetics or otherwise intended to be applied for cleansing, beautifying,
promoting attractiveness, or altering appearance.

���� 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)

���� 3.� This act shall take effect
immediately, and shall apply to retail sales made on or after October 1, 2025.

STATEMENT

���� This bill provides sales and
use tax exemptions for the sales of certain baby products and sunscreen.�

���� The exemption provided for
baby products would include baby wash or soap, baby shampoos, baby lotions, and
baby powders; child restraint systems; cribs; nursing bottles, nipples, and
funnels; and strollers.� A �child restraint system� is defined under the bill
to mean 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.� The bill also defines a
�crib� as a bed or sleeping enclosure designed to accommodate an infant or
young child including bassinets and toddler beds.� In addition, the bill
further defines a �stroller� as a non-motorized, wheeled vehicle designed to
push or otherwise transport an infant or young child including, but not limited
to, a carriage, folding-type umbrella stroller, or full-size stroller.

���� The bill also provides a sales
and use tax exemption for the sales of sunscreen.� �Sunscreen� is defined under
the bill to mean a lotion, cream, spray, or gel regulated by the federal Food
and Drug Administration that is primarily used for purposes of absorbing,
reflecting, or scattering ultraviolet radiation and preventing sunburn or any
sun-related skin damage.� The definition of sunscreen would not, however, include
products marketed or intended for use as cosmetics or otherwise intended to be
applied for cleansing, beautifying, promoting attractiveness, or altering
appearance.