The Millstone Times January 2020

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Dancer Bill Excluding Horse-Boarding Services From Sales Tax Advances

On January 6, 2020, the Senate Budget andAppropriations Committee advanced legislation (A1045) sponsored by Assemblyman Ron Dancer that would exempt horse boarding, maintenance and related services from the state sales tax. “There has been ongoing confusion in the industry about tax responsibilities, and as a result, stables have closed up shop and abandoned the state,” said Dancer (R-Ocean), who has been pushing the measure since November 2013. Horse boarding, maintenance and servicing businesses are required to register as a seller with the Division of Taxation in the Department of Treasury. Under current law, they are being taxed as “space for storage.” The bill relieves these businesses and services from sales tax obligations.

“Horse-related business plays an important role in our state’s economy,” Dancer continued. “Establishing clear sales tax guidelines will save New Jersey jobs and businesses. Horses are farm livestock, not ‘storage units’ in a warehouse and are stabled, not stored.”

The Rutgers Equine Science Center estimates the horse industry contributes more than $1 billion to the economy in a state with more than $4 billion in equine-related assets.

The bill will now go to the Senate President for consideration. It passed the Assembly in June 2018.

12 The Millstone Times

January 2020