January 13, 2020
TRENTON, N.J. – Both the Senate and Assembly passed legislation (A1045) today, sponsored by Assemblyman Ron Dancer, to 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.
“Our neighboring states do not charge sales tax on horse boarding services. By leveling the playing field, New Jersey’s equine horse industry will no longer be at a competitive disadvantage,” 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. I thank the Legislature for advancing this important bill.”
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 now goes to Gov. Phil Murphy for consideration.