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S3962 • 2026

Exempts purchases of natural gas and electricity for residential customers from sales and use tax.

Exempts purchases of natural gas and electricity for residential customers from sales and use tax.

Energy Taxes
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Amato, Carmen F., Jr.
Last action
2026-03-19
Official status
Introduced in the Senate, Referred to Senate Economic Growth Committee
Effective date
Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

Exempts purchases of natural gas and electricity for residential customers from sales and use tax.

Exempts purchases of natural gas and electricity for residential customers from sales and use tax.

What This Bill Does

  • Exempts purchases of natural gas and electricity for residential customers from sales and use tax.
  • Topic: Economic Growth Fiscal note: This bill has been certified by OLS for a fiscal note.

Limits and Unknowns

  • This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

  1. 2026-03-19 New Jersey Legislature

    Introduced in the Senate, Referred to Senate Economic Growth Committee

Official Summary Text

Exempts purchases of natural gas and electricity for residential customers from sales and use tax.
Topic:
Economic Growth
Fiscal note:
This bill has been certified by OLS for a fiscal note.

Current Bill Text

Read the full stored bill text 
S3962

SENATE, No. 3962

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED MARCH 19, 2026

Sponsored by:

Senator� CARMEN F. AMATO, JR.

District 9 (Ocean)

SYNOPSIS

���� Exempts purchases of natural gas and electricity for
residential customers from sales and use tax.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act

exempting certain purchases of natural gas and
electricity from taxation under the Sales and Use Tax 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.��� a.� Receipts from the
retail sales of natural gas and electricity for residential use shall be exempt
from the tax imposed pursuant to the �Sales and Use Tax Act,� P.L.1966, c.30
(C.54:32B-1 et seq.).�

���� b.��� A public utility that
provides natural gas or electrical services for residential customers shall, at
the conclusion of each monthly billing cycle, deduct from each customer�s bill
the amount that represents the State sales and use tax otherwise due on the
retail sale.�

���� c.���� The Director of the
Division of Taxation, in consultation with the Board of Public Utilities, shall
adopt rules and regulations in accordance with the �Administrative Procedure
Act,� P.L.1968, c.410 (C.52:14B-1 et seq.) as deemed necessary to implement the
provisions of this section.

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

STATEMENT

���� This bill exempts from the
State sales and use tax the retail sales of natural gas and electrical services
for residential customers.� Public utilities that provide natural gas and
electric services would be required, at the conclusion of each monthly billing
cycle, to deduct from each customer�s bill the amount that represents the sales
and use tax.

���� By exempting the purchase of
natural gas and electrical services from the sales and use tax, residents will
be able to find some measure of relief in the face of rising costs.