SENATE TRANSPORTATION COMMITTEE
STATEMENT TO
SENATE, No. 4639
with committee amendments
STATE OF NEW JERSEY
DATED: NOVEMBER 10, 2025
The Senate Transportation Committee reports favorably and with committee amendments Senate Bill No. 4639.
As amended and reported, the bill imposes a tax on the patrons of non-essential flights departing from, or arriving at, any aviation facility licensed by the State. The bill also imposes the sales and use tax on charges for non-essential flights departing from, or arriving at, any aviation facility licensed by the State.
Specifically, the bill imposes a tax on the patron of a non-essential flight in an amount equal to $100 per seat or $400 per flight, whichever is greater. This tax would apply to any non-essential flight departing from, or arriving at, any aviation facility licensed by the State, including, but not limited to, airports, heliports, and helistops.
Under the bill, a non-essential flight includes any flight on a non-essential helicopter or seaplane, except for flights: (1) providing emergency medical transportation; (2) providing heavy-lift operations in support of construction or infrastructure maintenance; (3) operating for research, experimental, or education purposes; or (4) operated or chartered by an organization that is exempt from federal taxation pursuant to section 501(c)(3) of the federal Internal Revenue Code, or a wholly-owned subsidiary thereof, in furtherance of the exempt organization’s mission. The bill defines a “non-essential helicopter or seaplane” to include any helicopter or seaplane, except for those owned or operated by, or on behalf of, a federal or military authority, the State or a political subdivision thereof, a news agency, or a licensed hospital or healthcare provider.
Under the bill, the owner or operator of a non-essential helicopter or seaplane operating a non-essential flight (owner or operator) is required to collect the tax imposed on the patron of the non-essential flight and separately state the tax on the retail sales receipt provided to the patron. The owner or operator is to have the same rights with respect to collecting the tax from a patron as if the tax were a part of the sales price and payable at the same time. The bill also requires the owner or operator to provide an electronic receipt to the patron. The bill requires the owner or operator to file the tax with, and pay the tax to, the State on a quarterly basis in a manner prescribed by the Director of the Division of Taxation in the Department of the Treasury.
Additionally, the bill imposes the sales and use tax on charges for non-essential flights departing from, or arriving at, any aviation facility licensed by the State. Under current law, charges for transportation services, including non-essential flights, are generally exempt from the sales and use tax. The bill eliminates this sales and use tax exemption as it relates to certain non-essential flights departing from, or arriving in, the State.
The bill also establishes the “Non-Essential Flight Tax Fund” (fund) as a special nonlapsing fund in the Department of the Treasury. Under the bill, the State Treasurer is required to annually deposit into the fund: (1) all revenue derived from the tax imposed on the patrons of non-essential flights; and (2) an amount equivalent to all revenue derived from the imposition of the sales and use tax on charges for non-essential flights. The bill requires the Legislature to annually appropriate all monies deposited into the fund to the New Jersey Transit Corporation for the support of its annual operating expenses.
COMMITTEE AMENDMENTS:
The committee amended the bill to:
(1) expand the applicability of the tax imposed on the patrons of certain flights to include any flight on a non-essential helicopter or seaplane that departs from, or arrives at, a licensed aviation facility in the State, with certain exceptions as outlined in the bill. These flights are defined and referenced in the bill as “non-essential flights.” As introduced, the tax would have only been imposed on those flights operated for the purpose of providing sightseeing tours;
(2) increase the tax imposed on the patrons of non-essential flights from $50 to $100 per seat and from $200 to $400 per flight. As amended, the amount of the tax is to equal $100 per seat or $400 per flight, whichever is greater;
(3) expand the exemption from the tax on non-essential flights to include any flights on non-essential helicopters or seaplanes that are operated on behalf of a federal or military authority, the State or a political subdivision thereof, a news agency, or a licensed hospital or healthcare provider. As introduced, this exemption would have only applied if the non-essential helicopter or seaplane was owned or operated by such entity;
(4) provide an additional exemption from the tax on non-essential flights for any flights that are operated or chartered by an organization that is exempt from federal taxation pursuant to section 501(c)(3) of the federal Internal Revenue Code, or a wholly-owned subsidiary thereof, in furtherance of the exempt organization’s mission;
(5) remove a provision of the bill that would have imposed an assessment equal to three percent of the gross receipts derived from certain tourist flight operations;
(6) impose the sales and use tax on charges for non-essential flights departing from, or arriving at, any aviation facility licensed by the State;
(7) establish a special nonlapsing fund, known as the “Non-Essential Flight Tax Fund,” into which all revenues generated from the taxes imposed on non-essential flights are to be annually deposited and appropriated to support the New Jersey Transit Corporation’s operating expenses;
(8) remove the definition of “tourist flight” and replace references to “tourist flight” with “non-essential flight” throughout the bill; and
(9) make technical changes to the bill, including revising the title and synopsis of the bill to reflect the committee amendments.