reglab/statecodes huggingface dataset:
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 24 - SALES AND USE TAX ACT › Subchapter 3 - HOTEL ROOM OCCUPANCY SUBJECT TO SALES TAX › Section 18:24-3.3 - Taxes on hotel room occupancy

Current through Register Vol. 56, No. 14, July 15, 2024
(a) The rent for every
				occupancy of a room or rooms in a hotel is subject to sales tax, except that the tax
				is not imposed upon:
1. A permanent resident;
2. An exempt organization, which
				qualifies for exemption pursuant to
				54:32B-9 and holds and presents a valid
				Exempt Organization Certificate (Form ST-5); or
3. A government entity, agency or instrumentality
				exempt pursuant to
				54:32B-9.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 24 - SALES AND USE TAX ACT › Subchapter 3 - HOTEL ROOM OCCUPANCY SUBJECT TO SALES TAX › Section 18:24-3.4 - Hotels

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Hotels are regularly kept open for the purpose
				of furnishing sleeping accommodations and related services for pay to tourists,
				transients, or travelers. The relationship between the operator of the establishment
				and the occupant is that of an innkeeper and guest, not that of a landlord and
				tenant, although the signing of a lease cannot overcome the operation of a facility
				as a hotel. Examples of a hotel include, but are not limited to:
1. An apartment hotel, bed and breakfast, motel,
				and inn;
2. A boarding house or rooming
				house containing eight or more units;
3.
				A condotel (for example, a building operated as both a condominium and a hotel);
				and
4. Any other building or group of
				buildings in which sleeping accommodations are normally available to the public on a
				transient basis.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 24 - SALES AND USE TAX ACT › Subchapter 3 - HOTEL ROOM OCCUPANCY SUBJECT TO SALES TAX › Section 18:24-3.5 - Facilities other than hotels

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Examples of
				facilities that are not subject to the tax imposed on rent received for hotel
				occupancy include, but are not limited to:
1.
				Places of assembly;
2. Health-care and
				similar facilities (that is, a nursing home, assisted living community,
				rehabilitation center, etc);
3. Summer
				camps and other overnight camps for children;
4. Campsites available for trailers, recreational
				vehicles, or tent camping;
5. College
				dormitories and other student-housing facilities; and
6. Furnished or unfurnished private residential
				property (that is, condominiums, bungalows, single-family homes, and similar living
				units), where no maid service, room service, linen service, or other common hotel
				services are made available by the lessor and where the keys to the property are
				provided to the lessee at the location of an offsite real estate broker. The
				furnishing of linens without the service of changing the linens does not alter the
				nontaxable nature of the facility.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 24 - SALES AND USE TAX ACT › Subchapter 3 - HOTEL ROOM OCCUPANCY SUBJECT TO SALES TAX › Section 18:24-3.6 - Permanent residents

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Any occupant of any room or rooms in a hotel
				for at least 90 consecutive days is considered a permanent resident with regard to
				the period of such occupancy. There is no tax on the rent for occupancy of a hotel
				room by a permanent resident. A hotel operator must collect the tax from an occupant
				until the occupancy reaches 90 consecutive days. When continuous occupancy has
				reached 90 days, the sales tax is no longer imposed and the tax previously collected
				is refundable to the occupant. If the tax is not refunded to the occupant by the
				hotel operator, the occupant may apply directly to the Division of Taxation for a
				refund. (See N.J.A.C. 18:2-5, Refunds, for general information concerning refund
				claims.)
(b) If an upfront rental
				agreement exists between the parties for a rental duration of 90 days or more, sales
				tax is not required to be charged by the hotel operator on the rental. If the
				occupant vacates the hotel in less than 90 days, tax is due on the full rental
				stay.
(c) A business can be deemed a
				permanent resident when it contracts for a room for use by an employee, customer,
				client, or other authorized person, as long as the duration meets the 90-day
				threshold. The contracting business can maintain its permanent resident status even
				where the room or rooms are not occupied by the same party throughout the rental
				period.
(d) The change of rooms within
				the same hotel does not alter a person's or business's status as a permanent
				resident nor interrupt the number of consecutive days necessary in order to
				establish permanent residency.
(e) A
				permanent resident who transfers from one hotel to another hotel, whether or not the
				hotels are run by the same operator, loses permanent-resident status. The occupant
				does not continue as a permanent resident at the second establishment until meeting
				the required 90-day requirement.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 24 - SALES AND USE TAX ACT › Subchapter 3 - HOTEL ROOM OCCUPANCY SUBJECT TO SALES TAX › Section 18:24-3.7 - Guest house

Current through Register Vol. 56, No. 14, July 15, 2024
A boarding or rooming house containing fewer than eight units
				  must be registered, and collect and remit sales tax on taxable occupancies as a
				  hotel, unless it is held out by the operator and kept open for the residence of
				  permanent boarders or lodgers. A permanent boarder or lodger is any person who
				  occupies or has the right to occupy a room or rooms in the house for at least 90
				  consecutive days.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 24 - SALES AND USE TAX ACT › Subchapter 4 - MANUFACTURING, PROCESSING, ASSEMBLING AND REFINING INDUSTRIES › Section 18:24-4.1 - Scope of subchapter

Current through Register Vol. 56, No. 14, July 15, 2024
(a) This subchapter is intended to clarify the
				application of the Sales and Use Tax Act,
				54:32B-1 et seq., to:
1. Manufacturing, processing, assembling and
				refining industries; and
2. Services
				performed on real or tangible personal property.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 24 - SALES AND USE TAX ACT › Subchapter 4 - MANUFACTURING, PROCESSING, ASSEMBLING AND REFINING INDUSTRIES › Section 18:24-4.2 - Definitions

Current through Register Vol. 56, No. 14, July 15, 2024
The following words and terms, when used in this subchapter,
				  shall have the following meanings, unless the context clearly indicates
				  otherwise:
"Assembling" means the collecting or gathering together of the
				  parts of a product, and placing them in their proper relation to each other.
"Machinery, apparatus, or equipment" means any complex,
				  mechanical, electrical, or electronic device, mechanism, or instrument that is
				  adapted to the accomplishment of a production process, and which is designed to be
				  used, and is used, in manufacturing, converting, processing, fabricating,
				  assembling, or refining tangible personal property for sale.
"Manufacturing or processing" means the performance of an
				  operation or series of operations, the object of which is to place items of tangible
				  personal property in a form, composition, or character different from that in which
				  they were acquired. The change in form, composition, or character must be a
				  substantial change, and it must result in a transformation of property into a
				  different or substantially more usable product.
"Motor vehicle" means all vehicles propelled otherwise than by
				  muscular power (excepting such vehicles as run only upon rails or tracks), trailers,
				  semitrailer, house trailers, or any other type of vehicle drawn by a motor-driven
				  vehicle, and motorcycles, designed for operation on the public highways.
"Part" means an item used as a replacement for any portion of a
				  machine and which is attached or affixed to the machine of which it is a part
				  permanently or during periods of use. A part cannot accomplish the work for which it
				  was designed independent of the machine of which it is intended to be a
				  component.
"Refining" means the making fine or pure, or partially free from
				  extraneous or undesirable matter.
"Supplies" means items of tangible personal property used in the
				  maintenance of a building, work area, or machinery, apparatus, or equipment, and may
				  include items of tangible personal property consumed or used in production whose use
				  is incidental to such production. Supplies include, but are not limited to:
1. Lubricants;
2. Cleaning materials;
3. Boiler compounds; and
4. Light bulbs.
"Tool" means a hand-held and manually operated work instrument
				  which is simple in design and used in the performance of simple work
				  functions.
"Year" means a standard calendar year of 12 months.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 24 - SALES AND USE TAX ACT › Subchapter 4 - MANUFACTURING, PROCESSING, ASSEMBLING AND REFINING INDUSTRIES › Section 18:24-4.3 - Tax on purchase or use of certain items

Current through Register Vol. 56, No. 14, July 15, 2024
(a) The purchase or use
				of the following items is subject to tax, unless otherwise specifically exempted,
				notwithstanding any use or intended use in production.
1. Supplies;
2. Tools;
3. Motor vehicles;
4. Parts with a useful life of one year or less.
				In determining whether a part has a useful life of one year or less, the purchaser's
				own treatment of the item for accounting purposes should be taken into
				consideration; and
5. Natural gas
				distributed through a pipeline, electricity, and utility service.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 24 - SALES AND USE TAX ACT › Subchapter 4 - MANUFACTURING, PROCESSING, ASSEMBLING AND REFINING INDUSTRIES › Section 18:24-4.4 - Purchase, rental, lease, or use of machinery, apparatus, or equipment directly in production exempt from tax

Current through Register Vol. 56, No. 14, July 15, 2024
(a) The purchase,
				rental, lease, or use of machinery, apparatus, or equipment for use or consumption
				directly and primarily in the production of tangible personal property by
				manufacturing, processing, assembling, or refining is exempt from tax.
(b) Production is limited to those operations
				commencing with the introduction of raw materials into a systematic series of
				manufacturing, processing, assembling, or refining operations, and ceases when the
				product is in the form in which it will be sold to the ultimate consumer, and does
				not include any activities which are distributive in nature. For example, a machine
				which packs a product into shipping cases after the product is in the form in which
				it will be purchased by the ultimate consumer is not considered to be used in
				production.
(c) Machinery, apparatus, or
				equipment is considered to be directly used in production only when it is used to
				initiate, sustain, or terminate the transformation of raw materials into finished
				products. In determining whether property consisting of machinery, apparatus, or
				equipment is "directly" used, consideration must be given to the following factors:
1. The physical proximity of the property in
				question to the production process in which it is used:
2. The proximity of the time of use of the
				property in question to the time of use of other property used before and after it
				in the production process; and,
3. The
				active causal relationship between the use of the property in question and the
				production of a product. The fact that particular property may be considered
				essential to the conduct of manufacturing, processing, assembling, or refining
				because its use is required either by law or practical necessity does not, of
				itself, mean that the property is used directly in manufacturing, processing,
				assembling, or refining. For example, property used to prevent accidents, which may
				be required by law, is not considered directly used.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 24 - SALES AND USE TAX ACT › Subchapter 4 - MANUFACTURING, PROCESSING, ASSEMBLING AND REFINING INDUSTRIES › Section 18:24-4.5 - Purchase or use of components and catalysts exempt from tax

Current through Register Vol. 56, No. 14, July 15, 2024
(a) The purchase or use
				of tangible personal property is exempt from tax when it is intended that the
				property be resold either:
1. In the same form as
				when purchased or used;
2. As a
				component of a product produced for sale by the purchaser; or
3. For use by the purchaser in performing taxable
				services, where the property so sold becomes a physical component of the property
				upon which the services are performed; or where the property so sold is later
				actually transferred to the purchaser of the service in conjunction with the
				performance of the taxable service.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 24 - SALES AND USE TAX ACT › Subchapter 4 - MANUFACTURING, PROCESSING, ASSEMBLING AND REFINING INDUSTRIES › Section 18:24-4.6 - Services subject to tax

Current through Register Vol. 56, No. 14, July 15, 2024
(a) The following enumerated services, purchased
				or sold by any person engaged in manufacturing, processing, assembling, or refining,
				not purchased for resale, that is, not performed on property offered for sale by the
				purchaser, are subject to sales and use tax:
1.
				Producing, fabricating, processing, printing, or imprinting tangible personal
				property (with the exception of imprinting services performed upon machinery,
				apparatus, or equipment used directly and primarily in manufacturing, processing,
				assembling, or refining), performed for a person who directly or indirectly
				furnishes the tangible personal property, not purchased by him or her for resale,
				upon which such services are performed.
2. Installing tangible personal property, except
				where such installation results in an exempt capital improvement to real property.
				In determining whether an installation of tangible personal property results in a
				capital improvement to real property, the following factors should be considered:
i. Whether the improvement results in an increase
				in the capital value of the real property;
ii. Whether the improvement results in a
				significant increase in the useful life of the property; and
iii. The treatment, for accounting purposes, of
				such improvements for Federal Internal Revenue purposes.
3. Maintaining, servicing, or repairing real or
				tangible personal property, regardless of how such services are performed, and
				whether or not any tangible personal property is transferred in conjunction with the
				performance of such services.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 24 - SALES AND USE TAX ACT › Subchapter 4 - MANUFACTURING, PROCESSING, ASSEMBLING AND REFINING INDUSTRIES › Section 18:24-4.8 - Recordkeeping

Current through Register Vol. 56, No. 14, July 15, 2024
Any person engaged in the business involving manufacturing,
				  processing, assembling, or refining is required to maintain records in compliance
				  with N.J.A.C. 18:24-2, Retention of Records by Sellers.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 24 - SALES AND USE TAX ACT › Subchapter 5 - CONTRACTORS AND SERVICES PERFORMED ON REAL PROPERTY › Section 18:24-5.1 - Scope of subchapter

Current through Register Vol. 56, No. 14, July 15, 2024
This subchapter is intended to clarify the application of the
				  Sales and Use Tax Act (54:32B-1 et seq.) to services performed
				  on real property.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 24 - SALES AND USE TAX ACT › Subchapter 5 - CONTRACTORS AND SERVICES PERFORMED ON REAL PROPERTY › Section 18:24-5.3 - Purchase of materials and supplies by contractors

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Sales of
				materials and supplies to contractors for use by them in erecting structures for
				others, or building on, or otherwise improving, altering, repairing, or maintaining
				the real property of others, including performing landscaping services, are deemed
				to be retail sales. Examples of taxable purchases of materials and supplies include,
				but are not limited to:
1. Grout by a home repair
				service provider;
2. Fertilizer and
				pesticides by a lawn service, tree service, or other landscaping service;
3. Pipes by a plumber; and
4. Lumber by a builder of new houses.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 24 - SALES AND USE TAX ACT › Subchapter 5 - CONTRACTORS AND SERVICES PERFORMED ON REAL PROPERTY › Section 18:24-5.4 - Equipment purchase, rental, or use

Current through Register Vol. 56, No. 14, July 15, 2024
(a) The purchase, lease,
				rental, or use of equipment by a contractor is subject to tax, whether or not the
				equipment is purchased, leased, rented, or used in fulfillment of a contract with an
				exempt organization.
(b) If a
				contractor pays to have a crane, bulldozer, or other equipment supplied with an
				operator who is needed in order for the equipment to function properly, the
				transaction is not deemed to be the lease or rental of the crane, bulldozer, or
				other equipment. It is treated as a service transaction.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 24 - SALES AND USE TAX ACT › Subchapter 5 - CONTRACTORS AND SERVICES PERFORMED ON REAL PROPERTY › Section 18:24-5.5 - Purchase of taxable services by contractors

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Taxable services
				purchased by a contractor are subject to tax unless such services are performed for
				a purchasing contractor exclusively for use in fulfilling a contract with an exempt
				organization.
(b) Services subject to
				tax include, but are not limited to:
1. The
				fabrication of tangible personal property;
2. Installing tangible personal property, for the
				benefit of the contractor, rather than the property owner. Examples include, but are
				not limited to:
i. Installation of
				scaffolding;
ii. Temporary fencing;
				and
iii. Temporary lighting during
				construction;
3. Maintaining,
				servicing, or repairing real or tangible personal property. Examples include, but
				are not limited to:
i. Snow removal;
ii. Sweeping and removing debris from a
				construction site; and
iii. Pest control
				services.
4. Security
				services, for example guard services; and
5. Landscaping, floor covering installation, and
				alarm system installation (security, burglar, fire, carbon monoxide).
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 24 - SALES AND USE TAX ACT › Subchapter 5 - CONTRACTORS AND SERVICES PERFORMED ON REAL PROPERTY › Section 18:24-5.6 - Contractor's tangible personal property installation services

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Treatment of
				installation services that do not result in a capital improvement are as follows:
1. Charges for services rendered by a contractor
				for installing tangible personal property, which, when installed, will not result in
				a capital improvement to real property, are subject to tax.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 24 - SALES AND USE TAX ACT › Subchapter 5 - CONTRACTORS AND SERVICES PERFORMED ON REAL PROPERTY › Section 18:24-5.7 - Documentation and application of the capital improvement exemption

Current through Register Vol. 56, No. 14, July 15, 2024
(a) When a contractor
				has installed property, which, when installed, results in a capital improvement to
				real property, other than landscaping services, floor covering installation, or
				alarm system installation, he or she shall obtain from his or her customer a fully
				completed Certificate of Exempt Capital Improvement (Form ST-8) or other approved
				form and retain it in his or her permanent records.
(b) When a contractor performs an installation,
				which results in a capital improvement to real property, other than landscaping
				services, floor covering installation, or alarm system installation, no tax should
				be collected from the customer. Payment of the tax on materials used is the
				responsibility of the contractor, and therefore materials obtained and provided by
				the contractor are not taxable to the property owner. The installation services are
				not subject to tax where the installation results in a capital improvement to real
				property, other than landscaping services, floor covering installations, or alarm
				system installation.
(c) If a property
				owner purchases construction materials and supplies from a retail store or other
				supplier, instead of having them purchased and supplied by the contractor, the
				property owner is liable for sales or use tax on the construction materials and
				supplies. The capital improvement exemption applies only to the charge for
				services.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 24 - SALES AND USE TAX ACT › Subchapter 5 - CONTRACTORS AND SERVICES PERFORMED ON REAL PROPERTY › Section 18:24-5.8 - Contractor services maintaining, servicing, or repairing real property

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Services
				rendered by a contractor in maintaining, servicing, or repairing real property,
				except as hereinafter provided, are subject to tax. When charging the tax on
				maintaining, servicing, and repairing real property, a contractor must charge the
				sales tax on only that portion of his or her bill attributable to services. The tax
				on materials used in performance of such services is the responsibility of the
				contractor. Examples of taxable maintenance or repair services include, but are not
				limited to:
1. Mowing lawns;
2. Applying lawn chemicals;
3. Spraying trees;
4. Weeding;
5. Repainting the interior or exterior of a
				building;
6. Patching a roof;
7. Cleaning up oil spills;
8. Snow plowing;
9. Power-washing a building; and
10. Removal of contained garbage (including
				hazardous wastes), except as provided in (b)2 below.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 24 - SALES AND USE TAX ACT › Subchapter 5 - CONTRACTORS AND SERVICES PERFORMED ON REAL PROPERTY › Section 18:24-5.9 - Fabricator/contractor's purchase of materials

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Where any person
				is engaged in the business of fabrication of items of tangible personal property
				produced for incorporation into real property as component parts thereof, as well as
				the business of installing such property, the person may purchase all component
				materials as purchases for resale.
(b) A
				fabricator/contractor is not required to pay tax on materials at the time of
				purchase. However, the fabricator/contractor does have the option to pay sales tax
				at the time of purchase. The fabricator/contractor should issue a fully completed
				Resale Certificate (Form ST-3) or other approved form when claiming a resale
				exemption at the time of purchase.
(c)
				A fabricator/contractor who claimed a resale exemption when purchasing materials
				that become physical components of the items fabricated must self-assess and pay use
				tax if the fabricator/contractor later installs the completed product on real
				property. A fabricator/contractor who paid sales tax when purchasing such component
				materials may seek a refund of the tax paid if he or she sells the completed product
				to a contractor, property owner, or other customer, but does not install the
				completed product.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 24 - SALES AND USE TAX ACT › Subchapter 5 - CONTRACTORS AND SERVICES PERFORMED ON REAL PROPERTY › Section 18:24-5.10 - Fabricator/contractor's sales of completed products

Current through Register Vol. 56, No. 14, July 15, 2024
Where a fabricator/contractor sells his or her completed product
				  for installation by someone other than himself or herself, such as, by the property
				  owner or by another contractor, he or she is required to charge and collect tax on
				  the sales price of the product.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 24 - SALES AND USE TAX ACT › Subchapter 5 - CONTRACTORS AND SERVICES PERFORMED ON REAL PROPERTY › Section 18:24-5.11 - Fabricator/contractor sale and installation of completed products; tax

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Where a
				fabricator/contractor sells his or her fabricated product, and as a part of that
				sale agrees to install the product at a location in this State, he or she may not
				collect tax from his or her customer for installation charges if the installation of
				his or her product results in an exempt capital improvement to real property. In
				such cases, the fabricator/contractor is, however, required to pay use tax directly
				to the Division of Taxation upon the value of his or her product. The use tax shall
				be computed on:
1. The price at which items of the
				same kind are offered for sale by him or her; or
2. If the fabricator/contractor makes no sales of
				items of the same kind, the tax shall be computed on the cost of all materials used
				in fabrication.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 24 - SALES AND USE TAX ACT › Subchapter 5 - CONTRACTORS AND SERVICES PERFORMED ON REAL PROPERTY › Section 18:24-5.12 - Subcontractor purchases and services

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Contractors who
				enter into a contract to perform specified operations for a second contractor are
				subcontractors. Their purchases and services are treated as follows:
1. The purchases of the subcontractor shall be
				treated in the same manner as purchases of a prime contractor.
2. Except as provided in (b) below, taxable
				services (see 18:24-5.6 ) performed by a
				subcontractor for a prime contractor are not subject to collection of tax by the
				subcontractor from the prime contractor. In such cases, the responsibility for
				collection of tax is that of the prime contractor. The subcontractor should maintain
				records to substantiate that taxable services were performed for a prime contractor.
				Purchases of materials by subcontractors for use in fulfilling service contracts
				with prime contractors are subject to tax, except where such purchases are for
				exclusive use in fulfilling service contracts with a prime contractor that is
				fulfilling a contract with an exempt organization.
3. Services performed by subcontractors for prime
				contractors resulting in exempt capital improvements to real property are not
				subject to tax. Purchases of materials by subcontractors for use in fulfilling
				contracts with prime contractors are subject to tax, except where such purchases are
				for exclusive use in fulfilling contracts with a prime contractor that is fulfilling
				a contract with an exempt organization. (See
				18:24-5.3, 5.4, and 5.5 for procedural
				requirements on exempt organization contracts.)
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 24 - SALES AND USE TAX ACT › Subchapter 5 - CONTRACTORS AND SERVICES PERFORMED ON REAL PROPERTY › Section 18:24-5.13 - Performance of contracts out-of-State

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Purchases of
				materials, supplies, and equipment in New Jersey for use in erecting structures for
				others, or building on, or otherwise improving, altering, or repairing real property
				of others at a location outside of New Jersey are subject to New Jersey sales and
				use taxes when such materials, supplies, and equipment are picked up by the
				contractor in New Jersey, except as provided in
				18:24-5.11(c).
(b) Such purchases of materials and
				supplies are not subject to tax when delivered to an out-of-State job site by:
1. The supplier;
2. A common carrier; or
3. An unregulated carrier hired by the
				supplier.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 24 - SALES AND USE TAX ACT › Subchapter 5 - CONTRACTORS AND SERVICES PERFORMED ON REAL PROPERTY › Section 18:24-5.14 - Out-of-State purchases

Current through Register Vol. 56, No. 14, July 15, 2024
(a) The use in New Jersey of any materials,
				supplies, equipment, or services purchased outside of New Jersey is taxable, subject
				to the comity provisions of
				54:32B-11(6).
(b) In such cases, the use tax liability shall be
				based on the purchase price of the materials, supplies, equipment, or services,
				except that in the case of equipment used outside of New Jersey by the contractor
				for more than six months prior to its use within New Jersey, the use tax on such
				equipment shall be based upon the current market value of the equipment.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 24 - SALES AND USE TAX ACT › Subchapter 5 - CONTRACTORS AND SERVICES PERFORMED ON REAL PROPERTY › Section 18:24-5.19 - Unregistered contractor bonds or reports

Current through Register Vol. 56, No. 14, July 15, 2024
(a) When a contractor
				who has not registered under provisions of
				54:32B-15 enters into a contract under
				which tangible personal property or taxable services will be used or consumed in New
				Jersey, the contractor shall register for tax purposes and present to the Director
				of the Division of Taxation a deposit or guarantee bond equal to five percent of the
				total amount to be paid under the contract whenever the circumstances indicate that
				it is appropriate to protect the interests of the State. Such circumstances would
				include a situation in which an unregistered contractor is only temporarily engaged
				in business in the State.
(b) Any person
				doing business with a contractor shall obtain from the contractor a copy of the tax
				registration certificate issued to the contractor pursuant to
				54:32B-15. If the contractor does not
				have a tax registration certificate, the person doing business with the contractor
				shall provide the name and address of the contractor and a brief description of the
				contract to the Division. This requirement shall be satisfied by mailing the name
				and address and contract summary to the New Jersey Division of Taxation, PO Box 269,
				Trenton, NJ 08695. Failure to comply shall be a disorderly persons offense under
				54:52-6.
(c) The bond requirement is imposed to secure
				payment of sales and use taxes payable with respect to tangible personal property or
				taxable services used or consumed under a contract, or of other State taxes, and is
				also imposed to assure that all contractors are registered and in compliance with
				New Jersey tax law.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 24 - SALES AND USE TAX ACT › Subchapter 6 - SALES OF CLOTHING, FOOTWEAR, AND PROTECTIVE EQUIPMENT AND SERVICES PERFORMED ON CLOTHING › Section 18:24-6.1 - Scope of subchapter

Current through Register Vol. 56, No. 14, July 15, 2024
This subchapter is intended to clarify the application of the
				  Sales and Use Tax Act,
				  54:32B-1 et seq., to sales of clothing,
				  footwear, protective equipment, sport or recreational equipment, accessories, and
				  certain services performed upon clothing and footwear.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 24 - SALES AND USE TAX ACT › Subchapter 6 - SALES OF CLOTHING, FOOTWEAR, AND PROTECTIVE EQUIPMENT AND SERVICES PERFORMED ON CLOTHING › Section 18:24-6.2 - Definitions

Current through Register Vol. 56, No. 14, July 15, 2024
The following words and terms, as used in this subchapter, shall
				  have the following meanings, unless the context clearly indicates otherwise:
"Clothing" means all human wearing apparel, including footwear,
				  suitable for general use. Clothing does not include: clothing accessories or
				  equipment, sport or recreational equipment, protective equipment, sewing equipment
				  and supplies, or sewing materials that become part of clothing.
"Clothing accessories or equipment" means incidental items worn
				  on the person or in conjunction with clothing.
"Fur" means any animal skin or part thereof with hair, fleece, or
				  fur fibers attached thereto, either in its raw or processed state, but shall not
				  include such skins that have been converted into leather or suede, or which in
				  processing the hair, fleece, or fur fiber has been completely removed.
"Fur clothing" means clothing that is required to be labeled as a
				  "fur product" under
				  15 U.S.C.
				  §
										69, and in which the value of its fur
				  components is more than three times the value of the next most valuable tangible
				  component.
"Protective equipment" means items for human wear and designed as
				  protection of the wearer against injury or disease, or as protection against damage
				  or injury of other persons or property but not suitable for general use.
"Sport or recreational equipment" means items designed for human
				  use and worn in conjunction with an athletic or recreational activity but that are
				  not suitable for general use.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 24 - SALES AND USE TAX ACT › Subchapter 6 - SALES OF CLOTHING, FOOTWEAR, AND PROTECTIVE EQUIPMENT AND SERVICES PERFORMED ON CLOTHING › Section 18:24-6.3 - Exempt sales of clothing and footwear

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Receipts from retail
				sales of clothing are exempt from tax imposed under the Sales and Use Tax
				Act.
(b) The exemption in (a) above does
				not apply to fur clothing, clothing accessories, sport or recreational equipment, or
				protective equipment.
(c) Examples of
				clothing include, but are not limited to:
1.
				Athletic supporters;
2. Baby receiving
				blankets;
3. Bibs;
4. Bathing suits, swim trunks, bathing
				caps;
5. Beach cover-ups, such as beach
				jackets, sarongs, or shorts;
6.
				Belts;
7. Boots, including hiking boots,
				snow boots, or fashion boots;
8. Bras,
				girdles, and garter belts;
9. Capes,
				ponchos, and mantillas;
10. Coats and
				jackets;
11. Collars and
				dickies;
12. Costumes;
13. Diapers, waterproof diaper pants, or
				incontinence briefs;
14.
				Djellabas;
15. Ear muffs or hand
				muffs;
16. Fezzes;
17. Formal wear;
18. Galoshes, rubbers, and other
				overshoes;
19. Gloves and
				mittens;
20. Hats, caps, visors, and
				baby bonnets;
21. Lab coats or hospital
				gowns;
22. Leather jackets;
23. Neckties;
24. Rainwear (jackets, ponchos, hats,
				etc.);
25. Sandals;
26. Saris;
27. Scarves and bandannas;
28. Shawls;
29. Shoes;
30. Shoe laces or shoe insoles;
31. Sleepwear (pajamas, nightgowns, robes,
				etc.);
32. Slippers;
33. Sneakers, tennis shoes, running shoes, and
				similar athletic shoes;
34. Socks,
				stockings, pantyhose, tights, footlets, peds, and other hosiery;
35. Steel-toed shoes;
36. Suede gloves;
37. Suspenders;
38. Turbans;
39. Underwear;
40. Yarmulkes;
41. Wedding apparel; and
42. Work clothing.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 24 - SALES AND USE TAX ACT › Subchapter 6 - SALES OF CLOTHING, FOOTWEAR, AND PROTECTIVE EQUIPMENT AND SERVICES PERFORMED ON CLOTHING › Section 18:24-6.4 - Sales of protective equipment necessary for the user's work

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Receipts from sales
				of protective equipment, when necessary for the user's daily work, are exempt from
				tax imposed under the Sales and Use Tax Act. This exemption is based on use and is
				entirely separate from the exemption for clothing.
(b) Sales of items of protective equipment that
				are not necessary for the user's daily work are taxable.
(c) Examples of protective equipment include, but
				are not limited to:
1. Breathing masks;
2. Chemical respirators and face masks;
3. Clean-room apparel;
4. Ear and hearing protectors;
5. Face shields;
6. Hard hats;
7. Helmets;
8. Protective gloves, (for example, welder's
				gloves);
9. Safety belts and
				harnesses;
10. Tool belts; and
11. Welders' masks.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 24 - SALES AND USE TAX ACT › Subchapter 6 - SALES OF CLOTHING, FOOTWEAR, AND PROTECTIVE EQUIPMENT AND SERVICES PERFORMED ON CLOTHING › Section 18:24-6.5 - Sales of accessories

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Clothing accessories, which are incidental
				items worn on the body, are not deemed to be clothing, and their retail sale is
				taxable.
(b) Examples of clothing
				accessories include, but are not limited to:
1.
				Backpacks and fanny packs;
2. Barrettes,
				hair bows, hair nets, ponytail holders, tiaras, and other hair notions;
3. Briefcases;
4. Cosmetics;
5. Fashion wigs and hair pieces;
6. Hand bags, shoulder bags, or tote bags;
7. Handkerchiefs;
8. Jewelry, bindhis, and body piercing
				studs;
9. Sunglasses
				(nonprescription);
10.
				Umbrellas;
11. Wallets and cell phone
				cases; and
12. Watches.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 24 - SALES AND USE TAX ACT › Subchapter 6 - SALES OF CLOTHING, FOOTWEAR, AND PROTECTIVE EQUIPMENT AND SERVICES PERFORMED ON CLOTHING › Section 18:24-6.6 - Sales of sport or recreational equipment

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Retail sales of
				items that are worn in conjunction with specific recreational or athletic
				activities, but that are not suitable for general use, do not fall within the
				clothing exemption and are taxable.
(b)
				Examples of sport and recreational equipment, include, but are not limited to:
1. Ballet and tap shoes;
2. Cleated or spiked athletic shoes;
3. Football helmets;
4. Gloves designed for specific sports, such as
				baseball catchers' mitts, boxing gloves, or bowling gloves;
5. Hand and elbow guards;
6. Life preservers and vests;
7. Mouth guards;
8. Roller skates or ice skates;
9. Shin and knee pads;
10. Shoulder pads;
11. Skis and ski boots;
12. Snorkel masks;
13. Swim fins;
14. Swim goggles;
15. Waders; and
16. Wetsuits.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 24 - SALES AND USE TAX ACT › Subchapter 6 - SALES OF CLOTHING, FOOTWEAR, AND PROTECTIVE EQUIPMENT AND SERVICES PERFORMED ON CLOTHING › Section 18:24-6.7 - Sewing materials

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Sewing materials are not included within the
				definition of clothing, but their sale may be exempt under certain
				circumstances.
(b) Receipts from the
				sale of sewing materials, such as fabric, thread, yarn, buttons, zippers, facing
				materials, hem tape, bias tape, trims (for example, lace, braid, or rickrack),
				snaps, and hooks and eyes, when purchased by noncommercial purchasers, for
				incorporation into clothing, are exempt from tax.
(c) Sewing equipment, tools, and supplies, such as
				sewing machines, needles, knitting needles, crocheting needles, tape measures, pins,
				tailor's chalk, scissors, and thimbles are not sewing materials, and their sale is
				not exempt from tax.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 24 - SALES AND USE TAX ACT › Subchapter 6 - SALES OF CLOTHING, FOOTWEAR, AND PROTECTIVE EQUIPMENT AND SERVICES PERFORMED ON CLOTHING › Section 18:24-6.8 - Services performed on clothing

Current through Register Vol. 56, No. 14, July 15, 2024
(a) The following
				services are exempt from sales tax:
1. Laundering
				clothing;
2. Dry cleaning
				clothing;
3. Tailoring, including
				mending, resizing, and altering;
4.
				Weaving clothing or weaving done on clothing;
5. Ironing or pressing clothing;
6. Repairing shoes; and
7. Cleaning and shining shoes.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 24 - SALES AND USE TAX ACT › Subchapter 7 - MOTOR VEHICLES › Section 18:24-7.2 - Taxability of retail sales receipts

Current through Register Vol. 56, No. 14, July 15, 2024
The receipts from every retail sale of any motor vehicle, except
				  as otherwise provided in the Sales and Use Tax Act,
				  54:32B-1 et seq., are subject to the
				  sales or use tax.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 24 - SALES AND USE TAX ACT › Subchapter 7 - MOTOR VEHICLES › Section 18:24-7.3 - Tax payment prerequisite to registration

Current through Register Vol. 56, No. 14, July 15, 2024
(a) The purchaser or
				user of a motor vehicle, as well as the seller thereof, is responsible for the
				payment of tax due on the sale at retail or taxable use of a motor vehicle required
				to be registered with the Motor Vehicle Commission.
(b) Under the provisions of
				54:32B-13, the Chairperson of the Motor
				Vehicle Commission shall not issue a registration certificate for any motor vehicle,
				(except in the case of a renewal of registration by the same owner) unless proof has
				been furnished that the tax, with respect to the sale of the motor vehicle to the
				registrant or his or her use thereof has been paid or that no such tax is
				due.
(c) Whether or not the motor
				vehicle is required to be registered with the Motor Vehicle Commission, a registered
				motor vehicle dealer or seller must collect the tax from the purchaser, if any such
				tax is due, and must remit the same to the Division of Taxation, unless the
				purchaser issues the dealer or seller a fully completed exemption
				certificate.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 24 - SALES AND USE TAX ACT › Subchapter 7 - MOTOR VEHICLES › Section 18:24-7.4 - Computation of tax on purchase price; trade-in

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Where any person
				engaged in the business of selling motor vehicles at retail completes a sale of a
				motor vehicle, he or she shall collect the sales or use tax, as may be the case.
(b) The tax shall be computed upon the
				full amount of the purchase price of a motor vehicle less any deduction for the
				trade-in of property of a like kind, if any.
(c) A deduction from the purchase price, equal to
				the amount of a trade-in actually allowed on the purchase, will be permitted,
				provided that:
1. The purchase and trade-in occur
				at the same time. A separate or independent sale of a motor vehicle is not
				considered a trade-in even if the proceeds of the sale are immediately applied by
				the seller to a purchase of a motor vehicle from the buyer;
2. The trade-in consists of property of the same
				kind as that purchased and that is accepted as partial payment. "Property of the
				same kind" means any other motor vehicle;
3. The trade-in is acquired by a dealer of motor
				vehicles who is registered as such with the Motor Vehicle Commission and the New
				Jersey Division of Taxation; and
4. The
				dealer obtains the certificate of title of the traded in vehicle and retains a copy
				of it as part of the record of the sale transaction.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 24 - SALES AND USE TAX ACT › Subchapter 7 - MOTOR VEHICLES › Section 18:24-7.5 - Charges in tax computation

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Charges for items in
				conjunction with the sale of a motor vehicle must be included in the amount upon
				which the tax is computed regardless of whether they are separately stated upon the
				customer's invoice. Examples include, but are not limited to:
1. Federal excise taxes;
2. Delivery or freight charges for delivery of a
				vehicle from a manufacturer or distributor to a dealer. Delivery charges from the
				dealer to his or her customer are subject to tax, if the sale of the vehicle itself
				is subject to tax;
3. Warranty charges
				and service/maintenance agreements;
4.
				Charges for preparation of or additional work upon a motor vehicle;
5. Charges for additional accessories or equipment
				placed in or attached to the motor vehicle by the dealer; and
6. Documentary service fees, which include
				services such as clerical services, messenger services, computer time, paperwork
				preparation charges, which are for the preparation and processing of title and
				registration documents, financing documents, etc. However, separately stated charges
				for the actual costs of title and registration fees imposed by the New Jersey Motor
				Vehicle Commission are not subject to tax.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 24 - SALES AND USE TAX ACT › Subchapter 7 - MOTOR VEHICLES › Section 18:24-7.6 - External tax computation indices

Current through Register Vol. 56, No. 14, July 15, 2024
Where, because of affiliation of interests between the seller and
				  purchaser, or for any other reason, the purchase price stated for a motor vehicle is
				  not indicative of the fair market value of the property and the purchaser is unable
				  to prove that a lower price was paid, the Director may, at his or her discretion,
				  utilize external indices to establish the fair market value of such property, which
				  shall form the basis upon which tax shall be assessed and paid.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 24 - SALES AND USE TAX ACT › Subchapter 7 - MOTOR VEHICLES › Section 18:24-7.7 - Out-of-State purchase by resident

Current through Register Vol. 56, No. 14, July 15, 2024
(a) A motor vehicle
				purchased by a resident of this State outside of this State for use outside of this
				State which subsequently becomes subject to the use tax imposed under the Sales and
				Use Tax Act, shall be taxed on the basis of the purchase price of the motor vehicle;
				provided, however, that where a taxpayer affirmatively shows that the motor vehicle
				was used outside this State for more than six months prior to its use within this
				State, the motor vehicle shall be taxed on the basis of the current market value at
				the time of its first use within this State.
(b) The value of such motor vehicle for use tax
				purposes may not exceed its cost, except as provided in
				18:24-7.6.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 24 - SALES AND USE TAX ACT › Subchapter 7 - MOTOR VEHICLES › Section 18:24-7.8 - Sales of motor vehicles specifically exempted

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Any sale of a motor
				vehicle to any of the following shall not be subject to the sales and use tax:
1. The State of New Jersey, or any of its
				agencies, instrumentalities, public authorities, public corporations, or political
				subdivisions;
2. The United States of
				America, and any of its agencies and instrumentalities, insofar as it is immune from
				taxation;
3. The United Nations or any
				international organization of which the United States of America is a
				member;
4. Those organizations described
				in 54:32B-9(b)(1)  that
				have obtained and hold an Exempt Organization Certificate as provided in
				54:32B-9; provided, however, that such
				vehicle is used directly in pursuit of the purposes of the exempt
				organization.