SALES & USE TAX EXEMPTIONS    
     
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( Title 54 Chapter 32B)
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New Jersey - Sales and Use Tax Exemptions and Exemption Certificates

New Jersey Sales tax applies to receipts from retail sale and rental of tangible personal property or digital property; retail sale of producing, fabricating, processing, installing, maintaining, repairing, and servicing tangible personal property or digital property; maintaining, servicing, or repairing real property; certain direct-mail services; tattooing, tanning, and massage services; investigation and security services; information services; limousine services; sales of restaurant meals and prepared food; rental of hotel and motel rooms; certain admission charges; certain membership fees; parking charges; storage services; sales of magazines and periodicals; delivery charges; and telecommunications services. (N.J.S.A. Sec. 54:32B-3)

NEW JERSEY EXEMPTIONS

Some of the enumerated exemption are for:

New Jersey Exempt Products: Prescription drugs, diabetic supplies, prosthetic devices, durable medical equipment for home use, mobility enhancing equipment sold by prescription;food and food ingredients, dietary supplements, clothing and footwear for human use; newspapers, magazines and periodicals sold by subscription, sales from coin-operated vending machines. certain charges for the transportation of persons or property; Bible or similar sacred scripture of a bona fide church or religious denomination; Flags of the United States of America or State of New Jersey.

New Jersey Exempt Usage: Sale of machinery or equipment for use or consumption directly and primarily in the production of tangible personal property by manufacturing, processing, assembling or refining; sale of machinery, apparatus or equipment for use or consumption directly and primarily in the production, generation, transmission or distribution of gas, electricity, refrigeration, steam or water for sale or in the operation of sewerage systems; Sales of tangible personal property, except energy, and digital property purchased for use or consumption directly and exclusively in research and development in the experimental or laboratory sense; Sales or use of wrapping paper, wrapping twine, bags, cartons, tape, rope, labels, nonreturnable containers, reusable milk containers, and all other wrapping supplies when such use is incidental to the delivery of any tangible personal property and containers for use in a "farming enterprise"; Sales of tangible personal property and production and conservation services to a farmer for use and consumption directly and primarily in the production, handling and preservation for sale of agricultural or horticultural commodities at the farming enterprise; Sales of materials, such as chemicals and catalysts, used to induce or cause a refining or chemical process, where such materials are an integral or essential part of the processing operation, but do not become a component part of the finished product are exempt from the tax; Renting, leasing, licensing or interchanging of trucks, tractors, trailers or semitrailers by persons not engaged in a regular trade or business offering such renting, leasing, licensing or interchanging to the public; certain commercial vehicles operated actively and exclusively for the carriage of interstate freight pursuant to a certificate or permit issued by the Interstate Commerce Commission; Recycling, treatment, conveyance equipment. (N.J.S.A 54:32B-8.1 through 54:32B-8.60)

New Jersey Exempt Entities: The State of New Jersey, or any of its agencies, instrumentalities, public authorities, public corporations or political subdivisions; The United States of America, and any of its agencies and instrumentalities, organizations organized and operated exclusively for religious, charitable, scientific, testing for public safety, literary or educational purposes; or for the prevention of cruelty to children or animals; or as a volunteer fire company, rescue, ambulance, first aid or emergency company or squad; or as a National Guard organization, post or association, or as a post or organization of war veterans, or the Marine Corps League, or as an auxiliary unit or society of any such post, organization or association; or as an association of parents and teachers of an elementary or secondary public or private school. (N.J.S.A 54:32B-9)

CAUTION: Sales tax exemptions mentioned above are very briefly described. Please see the exemption statute and the applicable regulations for details. Transactions that do not meet the requirements of the exemption statute and its applicable regulations do not qualify for the sales tax exemptions.

NEW JERSEY EXEMPTION CERTIFICATES: A seller of taxable goods and services is required to collect tax, unless the seller shall have taken from the purchaser a properly completed exemption certificate, signed by the purchaser and bearing his or her name, address and certificate of authority number, to the effect that the goods and services purchased are not subject to the sales or use tax by virtue of a statutory exemption set forth in such certificate.

 
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