New Jersey residents struggling amid the rising costs of living could find some relief in a newly proposed bill which, if passed, would make certain baby supplies exempt from the state’s sales tax.
“The only permanent way to make New Jersey more affordable is to cut taxes. Lowering the price of baby and pet essentials by exempting them from the state sales tax is a step in the right direction, and acknowledges that there are certain basic costs that come with raising a family here,” the bill’s sponsor, Assemblywoman Bethanne McCarthy Patrick (R-Salem) said in a statement.
Under McCarthy Patrick’s bills, baby cribs, car seats, nursing bottles and strollers would all be exempt from sales tax.
According to a recent study, nearly one-third of residents in the state did not have sufficient resources to afford basic necessities.
Garden State families need to make 300% more than the federal poverty level to live without public or private support. This means a family of four making under $90,000 a year is living in poverty in New Jersey.
“A baby adds more than $26,000 to a family’s budget,” she added.
“Savings on the sales tax can really add up on large purchases like car seats, which moms and dads are required to buy multiple times in their child’s lifetime.”
While New Jersey exempted diapers and baby formula from the state sales tax nearly 40 years ago, car seats, bottles, cribs and strollers are all subject to the 6.625% tax.