New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 7 - CORPORATION BUSINESS TAX ACT › Subchapter 7 - ALLOCATION › Section 18:7-7.2 - Regular place of business; definition

Current through Register Vol. 56, No. 14, July 15, 2024
(a) A regular place of
				business is any bona fide office (other than a statutory office), factory,
				warehouse, or other space of the taxpayer which is regularly maintained, occupied
				and used by the taxpayer in carrying on its business and in which one or more
				regular employees are in attendance. The following factors will assist in the
				determination of what is a regular place of business.
1. Bona fide office: An office in which an
				employee in attendance performs significant duties related to the business of the
				taxpayer. An office in name only, space of the taxpayer or any place where an
				employee does not actually perform significant duties constituting part of
				taxpayer's business does not constitute a regular place of business.
2. Space of the taxpayer: The taxpayer must be
				directly responsible for the expenses incurred in maintaining the regular place of
				business and must either own or rent the facility in its own name and not through a
				related person or entity. The regular place of business should be identifiable as
				belonging to the taxpayer by, for example, reflecting the taxpayer's name on the
				exterior and interior of the building and being listed in the taxpayer's name in a
				telephone book.
3. Regularly maintained,
				occupied and used by the taxpayer in carrying on its business: The taxpayer must
				regularly maintain, occupy and use the premises by employing one or more regular
				employees who are in attendance during normal working hours. Premises are not
				regularly maintained, occupied and used in the event employees are in attendance
				only on a part time basis and, in their absence, telephone messages are received by
				an answering service or recording device.
4. Regular employee: A regular employee must be
				under the control and direction of the taxpayer in transacting the taxpayer's
				business and/or performing work on behalf of the taxpayer. The officers of the
				taxpayer are generally deemed to be regular employees of the taxpayer while
				independent contractors and members of the taxpayer's board of directors are not
				regular employees of the taxpayer. The method or procedure by which a taxpayer
				reports the compensation paid to an individual (such as a W-2 form) shall not be
				conclusive as to whether the individual is a regular employee (See
				N.J.A.C.
				18:7-8.14.):
i.
				The facilities of a public warehouse located outside New Jersey and utilized to
				store property of the taxpayer prior to shipment to customers shall not constitute a
				regular place of business of the taxpayer where the warehouse is not the space of
				the taxpayer.
ii. The facilities of an
				independent contractor located outside of New Jersey and used to store, convert,
				process, finish and/or improve the goods of the taxpayer prior to shipment to
				customers shall not constitute a regular place of business of the
				taxpayer.
iii. A job site, field office
				or other facility which is not regularly maintained, occupied and used in taxpayer's
				business or where administrative duties, such as performing payroll functions,
				telephoning, recordkeeping, banking, accounting, the hiring and firing of employees
				and similar functions are not performed, is not a regular place of
				business.
iv. The location of
				inventories outside New Jersey in the possession of employees in their homes, or in
				trucks, or in coin-operated machines do not represent space regularly maintained,
				occupied and used by the taxpayer in carrying on its business.
v. In the event that the taxpayer's business is
				conducted by an independent agent or independent contractor, the place of business
				of the independent agent or independent contractor shall not be considered a regular
				place of business of the taxpayer. In addition, any employee of such independent
				agent or independent contractor shall not be considered a regular employee of the
				taxpayer.