Exempts protective face coverings from sales and use tax during public health emergencies.

A2352

ASSEMBLY, No. 2352

STATE OF NEW JERSEY

222nd LEGISLATURE

�

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Assemblyman WILLIAM F. MOEN, JR.

District 5 (Camden and Gloucester)

SYNOPSIS

���� Exempts protective face coverings from sales and use
tax during public health emergencies.

CURRENT VERSION OF TEXT

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

��

An Act
exempting protective face coverings from the sales and
use tax during public health emergencies, amending P.L.1980, c.105.

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

���� 1.��� Section 13 of P.L.1980,
c.105 (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.

���� 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.

����
�Protective face coverings�
means medical masks, respirators, or other face coverings that are designed, or
sold for use, to protect the wearer or others from the spread of infection or
illness.

���� 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.

����
d.� Receipts from sales of
protective face coverings shall be exempt from the tax imposed under the �Sales
and Use Tax Act� during a State-wide public health emergency declared by the
Governor pursuant to the �Emergency Health Powers Act,� P.L.2005, c.222
(C.26:13-1 et seq.); provided that agencies or official representatives of the
federal or State government require or encourage protective face coverings to
be worn to help mitigate the public health emergency.

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

�

���� 2.� This act shall take effect
immediately.

STATEMENT

���� This bill exempts protective
face coverings from taxation under the �Sales and Use Tax Act� during a
State-wide public health emergency declared by the Governor provided that
agencies or official representatives of the federal or State government require
or encourage New Jerseyans to wear protective face coverings to mitigate the
public health emergency.� In response to the COVID-19 pandemic, the Governor
has mandated New Jerseyans to wear protective face coverings, commonly referred
to as masks, indoors and outdoors when social distancing is not feasible.� By
exempting protective face coverings from sales and use tax during public health
emergencies, cost will become less of a barrier to purchasing protective face
coverings during a time when they are necessary for safeguarding public
health.���

���� As defined in the bill,
protective face coverings are medical masks, respirators, or other coverings
that are designed, or sold for use, to protect the wearer or others from the
spread of infection or illness.