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Lagana Bill to Exempt Small Businesses from Taxes on Winterization Costs Advances

Trenton – In an effort to help small businesses, the Senate Economic Growth Committee advanced legislation sponsored by Senator Joseph Lagana, which would refund them for winterizing their outdoor operations during the COVID-19 pandemic.

“In order to stay open and promote safe dining, small businesses were forced to adjust and adapt multiple times over the past year. This became especially apparent during the winter months at the end of 2020 and early 2021,” said Senator Lagana (D-Bergen/Passaic). “For these reasons, they should be exempt from the sales and use tax on efforts to winterize outdoor dining during the colder months of the pandemic.”

Under the bill, S-3740, any independently owned small businesses, employing fewer than 20 full-time employees, would be exempt from the sales and use tax incurred from winterizing costs. These businesses would need to submit an exemption application to the Division of Taxation for the purchases made or services obtained from September 1, 2020 to March 31, 2021 to winterize their business.

The Assembly version of the bill, sponsored by Assemblyman Christopher Tully, was voted out of the General Assembly in March 2021.

The bill was released from committee by a vote of 5-0.