How do I check the status of my New Jersey Income Tax refund?
You can get information about your New Jersey Income Tax refund online or by phone.
The State of New Jersey issued me a check that was lost, stolen or destroyed, or that can't be cashed because the cash by date has passed. How do I get a replacement?
Old (stale-dated) Checks. If you have the check, send it along with a letter requesting a replacement check to the New Jersey Division of Taxation at the address below. Do not write the word void anywhere on the check. Keep a copy of the check for your records.
NJ Division of Taxation
Taxpayer Accounting Branch
PO Box 266
Trenton NJ 08695-0266
If you do not want to use the mail, you can return the check to one of our Regional Information Centers.
Lost, Stolen, or Destroyed Checks. If you do not receive your check within 30 days of the date the check was issued, or if you received a check that was lost, stolen, or destroyed, you can request a replacement check. Call the Customer Service Center at 609-292-6400 and speak to a Division Representative. The Division will trace the check.
You can also request a check tracer for your New Jersey Income Tax refund check for the current year by calling the Division's Automated Refund Inquiry System at 1-800-323-4400 (Touch-tone phones within NJ, NY, PA, DE, and MD) or 609-826-4400 (touch-tone phones anywhere). Due to the volume of claims, please allow up to 30 days for a replacement check to be issued.
I received only one State copy of my W-2, and I have more than one state return to file. What should I do?
New Jersey will accept a photocopy of your W-2 form(s), as long as the copy is legible.
I filed electronically. Do I have to send you my W-2 form(s)?
When you file your return electronically, you do not have to send any supporting documents unless specifically requested to do so by the Division of Taxation. You should keep these documents for your records, as you may be asked to submit them at a later date. If you file an amended return, you must submit all supporting schedules, forms, or documents you would have included if you filed your original return on paper.
Why did (didn't) I receive a Form 1099 from New Jersey?
Forms 1099-G and 1099-INT are reports of income you received from the Division of Taxation during the tax year. The IRS requires government agencies to report certain payments made during the year because those payments are considered taxable income for the recipients. The State of New Jersey does not mail Form 1099-G, Certain Government Payments, to report the amount of a State tax refund a taxpayer received. State Income Tax refunds may be taxable income for federal purposes for individuals who itemized their deductions on their federal tax return in the previous year. Taxpayers who need this information to complete their federal returns can view or print their 1099-G information online. For more information, see Frequently Asked Questions Form 1099-G and Form 1099-INT.
Note: 1099-G statements for unemployment insurance benefits are issued by the Division of Unemployment Insurance within the Department of Labor and Workforce Development. For more information, visit their website.
I filed my return using commercial software, and I have questions. Who can help?
The New Jersey Division of Revenue and Enterprise Services' Alternative Filing Branch is responsible for returns that are electronically filed using commercial software such as TurboTax. For answers to questions about the e-file program, including questions on document control numbers (DCNs), contact the Revenue and Enterprise Services at 609-292-9292 and select the option for "electronic filing and payment services."
I lived in New Jersey for only part of the year. Which return do I file: resident or nonresident?
If you were a resident of New Jersey for only part of the year and your income from all sources for the entire year was more than $20,000 ($10,000 if filing status is single or married/CU partner, filing separate return), you must file a New Jersey resident Income Tax return and report any income you received while you were a New Jersey resident. If you had any income from New Jersey sources while you were a nonresident, you may also need to file a New Jersey nonresident return (Form NJ-1040NR). View additional information on filing a part-year return.
I live in New Jersey but work in Pennsylvania. My employer withheld Pennsylvania income tax from my wages. What do I do? What are the mailing addresses for the Income Tax returns?
As a result of the Reciprocal Personal Income Tax Agreement between New Jersey and Pennsylvania, New Jersey residents who receive compensation from Pennsylvania sources are not subject to Pennsylvania income tax on those earnings. If you are a New Jersey resident and Pennsylvania income tax was withheld from wages you earned there, you must file a Pennsylvania return to get a refund. To stop the withholding of Pennsylvania income tax, complete Form REV-419 , Employee's Nonwithholding Application Certificate, and give it to your employer. More information is available on the Pennsylvania Department of Revenue website or by calling 1-717-787-8201.
In addition, if your Pennsylvania employer did not withhold New Jersey Income Tax, you must pay the amount due to New Jersey and you may be required to make estimated tax payments.
For more information, see the Reciprocal Personal Income Tax Agreement between New Jersey and Pennsylvania.
What are the mailing addresses for the Income Tax returns?
The mailing address for your New Jersey return and/or payment depends on the form you are filing and if you are due a refund or making a payment. View the list of mailing addresses.
I made a mistake when I filed my New Jersey return. How do I correct it?
Residents. To amend your New Jersey resident return, file Form NJ-1040X for the appropriate year. You must file a paper form regardless of how you filed your original return.
Nonresidents. New Jersey does not have a special form for amending nonresident returns. To amend a nonresident return, you must file a paper Form NJ-1040NR for the appropriate year. Write the word "Amended" in bold letters in the upper right-hand corner of the return.
Are Social Security benefits taxable for New Jersey Income Tax purposes?
No. Federal Social Security benefits are not taxable. Do not include these amounts on the New Jersey return. Social Security also should not be reported on the Property Tax Credit Application, Form NJ-1040-H.
Are unemployment, disability payments, or family leave insurance taxable for New Jersey Income Tax purposes?
Unemployment compensation and temporary disability (including family leave insurance benefits) received from the State of New Jersey or as third-party sick pay are not taxable. Do not include these amounts on your New Jersey return.
Are property tax relief benefits such as the Homestead Benefit or Senior Freeze (Property Tax Reimbursement) taxable?
For New Jersey Income Tax purposes, the Homestead Benefit and Senior Freeze (Property Tax Reimbursement) payments are not taxable. Do not report these amounts on the New Jersey return.
Information on the federal income tax treatment of these payments, called "recoveries" by the IRS, can be found on the IRS website.
Is the federal deduction for general sales taxes paid applicable for New Jersey Income Tax purposes?
No. New Jersey law does not allow a deduction from income for sales taxes paid.
On the federal return I am claiming a deduction for amounts paid for health insurance for my child who was age 26 at the end of 2018. Can I claim this deduction on my New Jersey Income Tax return?
For New Jersey purposes you can deduct these amounts only if the child was your dependent. For more information, see Technical Advisory Memorandum TAM 2011-14 .
How do I know if my New Jersey tax return was received?
Electronic (Paperless) Returns: If you used the New Jersey Online Income Tax Filing system, you received a confirmation number that serves as proof that your return was successfully filed. Your return is not filed until you receive your confirmation number. If you filed your return using software such as TurboTax, the software company will notify you about the receipt of your return. If you had a tax practitioner file your return electronically, the practitioner should notify you about whether your return was accepted for filing.
Paper Returns: Paper returns and payments are not logged in as they are received. Division personnel cannot verify receipt of your return until the return or payment appears in our computer system.
Have the New Jersey Income Tax rates changed this year?
No, the New Jersey Income Tax rates have not changed for 2019.
For more information, see the following:
How can I get New Jersey tax forms?
New Jersey Income Tax forms are available on our website.
How do I get a copy of a New Jersey Income Tax return that I filed?
You can get a copy of a previously filed New Jersey Income Tax return by completing Form DCC-1 . Mail the completed form to: New Jersey Division of Taxation, Document Control Center, PO Box 269, Trenton, NJ 08695-0269.
You can also get copies of previously filed New Jersey returns (NJ-1040, NJ-1040NR, or NJ-1041) by delivering a completed DCC-1 to a Division of Taxation Regional Information Center. Regional Information Centers can provide copies of returns only to the person(s) who signed the requested tax return or to the taxpayer's authorized representative. The representative must provide a Form M-5008-R , Appointment of Taxpayer Representative, that covers the requested return(s). A photo ID of the taxpayer (or the taxpayer's authorized representative) is required.
How do I register for a New Jersey tax identification number? How do I register a business?
A business must complete and file Form NJ-REG (Business Registration Application) to register with the State to collect/remit New Jersey taxes such as sales tax or employee withholdings, and to obtain a New Jersey tax identification number. You can register a business online or file a paper application through The Division of Revenue and Enterprise Services. For additional information on registering your business, visit Division of Revenue and Enterprise Services.
I have a business in another state and am coming to New Jersey for a trade/craft show. Do I have to register?
Anyone who makes retail sales in this State, including sales at flea markets, craft shows, or trade shows, is doing business in New Jersey and must comply with the State's tax laws. New Jersey law requires all vendors, even seasonal businesses and "one-time" vendors, to register with the State for tax purposes at least 15 business days before starting business, and to collect New Jersey Sales Tax on all sales of taxable tangible personal property or services. There are no special provisions for temporary vendors. Once registered, you must file all required returns until you properly end your tax registration with New Jersey.
File Form NJ-REG (Business Registration Application) to register with the State to collect/remit New Jersey taxes, such as Sales Tax or employee withholdings, and to obtain a New Jersey tax identification number. You can register online or file a paper application through The Division of Revenue and Enterprise Services. For additional information on registering your business, visit Division of Revenue and Enterprise Services.
Also see publications ANJ-11, Arts & Crafts Businesses and New Jersey Sales Tax, ANJ-15, Flea Markets & New Jersey Sales Tax, and ANJ-13, Ending Your Tax Registration in New Jersey, available at the Division's Publication page.
How do I add (end) a specific tax eligibility once my business is registered?
You can add or end eligibility for specific taxes either online or by filing a paper Form REG-C-L, Request for Change of Registration Information. Visit the Division of Revenue's site for more information.
The procedures to be followed to end your business depend upon the type of business entity you have (sole proprietorship, partnership, corporation, etc.) and the taxes for which you are registered. For details, please see publication ANJ-13 , Ending Your Tax Registration in New Jersey.
New Jersey's procedures for corporate dissolution require that all documents for dissolution or withdrawal, including the request for the tax clearance, be submitted together as a package to the Division of Revenue. For additional information, including the necessary forms and instructions, go to the Division of Revenue's website.
How can a business change its address?
You can change the address for a business account either online or by filing a paper Form REG-C-L, Request for Change of Registration Information. Change an address online or to obtain a copy of Form REG-C-L.
Why can't I submit Form ST-51 showing $0.00 due?
"Zero" monthly returns cannot be filed. When the amount due for any monthly period covered by Form ST-51 is $500 or less, you do not need to file a monthly return. Payment for that month must be made with the next quarterly return, Form ST-50.
You are only required to file a monthly Sales Tax return (Form ST-51) if:
NOTE: If you collected $30,000 or less in New Jersey Sales and Use Tax in the prior calendar year, do not file Form ST-51 for the first or second month of any quarter.
When I try to file online and make my quarterly Sales Tax payment by e-check, the system will not let me enter today's date as the settlement date. Today is the due date. What should I do so that my payment is not late?
When you file online or by phone and make your payment by electronic check (e-check), the earliest settlement date (date the payment will be debited from your account) you can select is the next business day. No matter which payment method you select, if your payment transaction is initiated by 11:59 p.m. on the due date, your payment will be considered timely even if the settlement date is after the due date.
What is the New Jersey Sales Tax rate?
The State of New Jersey's sales and use tax rate is (6.625%). However, there are exceptions to this statewide rate. In Urban Enterprise Zones, UEZ-impacted business districts, and in Salem County, Sales Tax may be charged at 3.3125% (50% of the regular rate) on certain items. In addition, local sales taxes are imposed on sales of certain items sold in Atlantic City and Cape May County. For additional information, see Tax Topic Bulletin S&U-4, New Jersey Sales Tax Guide .
View a Sales Tax collection schedule (ST-75 ) for the Statewide 6.625% Sales and Use Tax.
Are shipping and handling subject to Sales Tax?
Effective October 1, 2005, the law provided for a new definition of "delivery charges." For transactions occurring on or after October 1, 2005, handling charges are included within the definition of delivery charges, and are therefore exempt from tax whether or not they are separately stated to the purchaser.
As of October 1, 2006, the exemption for delivery charges imposed by the seller was repealed for taxable goods and services. For deliveries, if a shipment includes both taxable and exempt property, the seller should allocate the delivery charge based on either the total sales price or the total weight, and collect tax on the portion of the delivery charge allocated to the taxable goods. In such mixed transactions, if the seller does not allocate the delivery charge, the entire delivery charge is taxable.
Why can't I submit ACH Credit payments when I submit the tax return on your Website?
There is no provision for ACH Credit payers to initiate the payment through the online filing system. Only ACH Debit registrants can complete the EFT transaction online. If you are registered for ACH Credit, please use your regular EFT method of payment (outside the online filing system) to initiate your payment transaction.
I recently switched banks. How do I update my bank account information for making ACH debit payments?
ACH debit customers can update their bank account information as follows:
If the due date for your payment is imminent, you may need to select another payment method until your bank information is updated. View information on electronic payment options.
I need my PIN to file my business tax return. How can I get my PIN?
To use the online filing and payment services for business taxes, you must enter your 12-digit Federal or New Jersey Taxpayer Identification Number and either the first four characters (letters or numbers) of your registered business name or the 4-digit Personal Identification Number (PIN) assigned to the business. However, if you login using the business name, you will not be able to view any returns or payments previously submitted or to select the Electronic Funds Transfer (EFT) payment option. A PIN is required for full access to all options.
If you need to obtain your PIN, call our Customer Service Center at 609-292-6400. You will be asked to supply identifying information from previous business tax filings.
What is the Sales Tax rate on a motor vehicle?
Effective January 1, 2018, the Sales Tax rate is 6.625% on the purchase price of a new or used vehicle. The rate in 2017 was 6.875%.
Why did I receive this notice? I already gave the information to the Motor Vehicle Commission.
By law, the Director of the NJ Division of Taxation must certify that the correct amount of Sales Tax has been paid on the actual purchase price of the vehicle. If a Sales Tax exemption was claimed, the Director must certify that no Sales Tax was due.
Do I have to complete the Affidavit at the bottom of the Questionnaire?
Yes. When completing the Questionnaire, it is required that the Purchaser's Affidavit be completed. Based on the type of vehicle transfer the Seller's Affidavit may need to be completed.
Can I fax the completed Questionnaire and/or the Seller's Affidavit to the Division?
Yes. The fax number is 609-292-9266.
What will happen if I do not respond to a notice?
If you do not respond to a notice, we may charge you tax on the vehicle's value based on data provided by the National Automobile Dealers Association (N.A.D.A.).
Why did I receive a second notice?
A second notice is sent when no response is received from the first notice. If you have received a second notice for the same transaction, and you previously sent in correspondence, contact the Division of Taxation Casual Sales Unit by email at firstname.lastname@example.org or by phone at 609-984-6206.
How do I check the status of the paperwork I mailed in response to the notice?
Contact the Division of Taxation Casual Sales Unit at 609-984-6206 or email email@example.com.
Please Note: Emails sent to the above-referenced address are not secure. No confidential information, such as Social Security or Federal Tax Identification numbers, dates of birth, or bank account numbers should be included in your email. Do not attach documents that include confidential information to emails.
Will I be notified that the documents I mailed were sufficient and no further Sales Tax is due?
If we determine additional documentation is necessary to complete a review of your account, we will mail you a follow-up notice. If the documentation is complete a closed inquiry letter may be issued upon request.
My vehicle was a gift. What do I need to do?
Complete the questionnaire and have the donor complete the Seller's Affidavit.
If the vehicle given as a gift was free and clear of any lien:
If the vehicle given as a gift was transferred with a lien:
If you were not a co-owner on the original title, Sales Tax is due on the principal loan amount assumed.
Example as of January 1, 2018: The vehicle was transferred to you, and you assumed a loan with a $5,000 balance due. You must pay 6.625% Sales Tax on the $5,000. Total Sales Tax due = $331.25. You must remit the Sales Tax due, with a copy of the Transfer of Equity paperwork from your lending institution to document that you have assumed the $5,000 balance due.
If you have questions pertaining to federal gift tax, contact the IRS at 1-800-829-1040.
A donor who gave me a vehicle as a gift is now deceased. What documentation should I submit?
You should check the appropriate box on the Questionnaire and complete the Purchaser's Affidavit. The executor should complete the Seller's Affidavit on behalf of the deceased donor and provide a copy of their surrogate certificate and the donor's death certificate.
A vehicle was left to me in a will. What do I need to send in?
You should check the appropriate box on the Questionnaire (Gift), complete the Purchaser's Affidavit, and enclose a copy of the will. If there is a lien on the vehicle then tax is due on the principal loan amount assumed.
I traded goods or services for the vehicle but did not make a monetary payment. Do I owe tax?
Yes, if there was any payment, barter, exchange, or service for the vehicle. This type of transaction does not qualify as a gift, and you must pay Sales Tax on the fair market value of the vehicle.
Note: You may be required to report the transaction on your individual and/or business tax return(s) whether or not any consideration is involved.
I swapped vehicles with my friend. Is this taxable?
Yes. Swapping vehicles between two private parties is taxable. The tax is based on the Fair Market Value of the vehicle. Trading anything of value for a car is taxable.
Example #1: A person swaps a $25,000 boat for a 2015 Honda CR-V. This is a taxable transfer. The tax is based on the Fair Market Value of the Honda, which, because of the boat's value, is determined to be $25,000. ($25,000 x 6.625% = $1,656.25 Sales Tax due).
Example #2: A person swaps a 2014 Jeep Grand Cherokee for a 2013 Ford F-150. In order to obtain the Ford F-150, the taxpayer gave $1,000 cash in addition to the Grand Cherokee. Tax is due on the Fair Market Value of the 2014 Jeep Grand Cherokee and the $1,000 in cash.
A vehicle was in poor condition when I bought it so I paid an amount less than the National Automobile Dealers Association (N.A.D.A.) value. What should I send as proof?
You may submit copies of:
Complete the Questionnaire and Purchaser's Affidavit. You also may have the seller complete the Seller's Affidavit confirming the purchase price.
I did not report the correct purchase price when I registered a vehicle; but, I paid less than the National Automobile Dealers Association (N.A.D.A.) value listed on the notice. What should I do?
You should have the seller complete a Seller's Affidavit. If the seller is not available, you should submit a letter stating the correct purchase price and provide any information that will verify the purchase price along with the completed Questionnaire and Purchaser's Affidavit. Your information will be reviewed, and, if we determine additional tax is due, the Casual Sales Unit will mail you a Notice of Adjustment.
I paid cash for a vehicle and do not have a receipt. How can I prove the purchase price?
You may attach a copy of your bank statement that shows the cash withdrawal. You may also have the seller complete the Seller's Affidavit and return it with the completed Questionnaire and Purchaser's Certification. However, without proper proof of the vehicle purchase price, you may be assessed Sales Tax based on the National Automobile Dealers Association (N.A.D.A.) Guide.
I cannot locate the seller to have him or her fill out the Seller's Affidavit. What should I do?
You should enclose a copy of the cash receipt, canceled check, or money order. You should provide a detailed letter regarding the transaction, provide the seller's name, and contact information, if available. Your information will be reviewed. However, if you cannot provide acceptable proof of the vehicle purchase price, you may be assessed Sales Tax based on the National Automobile Dealers Association (N.A.D.A.) Guide.
I am a sole proprietor, and I transferred a vehicle from my name to my business name. Is Sales Tax due on that transfer?
No. As a sole proprietor you would not have to pay any additional tax on that transfer. Complete the Questionnaire and Affidavit along with attaching any supporting documentation of the transfer.
A vehicle was purchased from a leasing company at the end of the lease period. What documents should I submit?
You should submit a copy of the lease purchase agreement that indicates the buyout figure and the amount of tax paid by the lessee.
I transferred a vehicle from my corporation to myself. Is this taxable?
Yes, if there was any payment, barter, exchange, or service for a vehicle. This type of transaction does not qualify as a gift, and you must pay Sales Tax on the fair market value of the vehicle. If there was a lien on the vehicle, then Sales Tax is due on the loan amount assumed.
No tax is due if the corporation was dissolved before the transfer and the vehicle was transferred to a stockholder as a liquidating dividend. If that is the case, submit a copy of the tax clearance certificate.
Note: You may be required to report the transaction on your individual and/or business tax return(s) for Income Tax purposes whether or not any consideration is involved. If you have questions pertaining to federal gift tax, contact the IRS at 1-800-829-1040.
How can I obtain proof of Sales Tax paid to the dealer when the vehicle was purchased?
You can find this information on the documents you received from the dealer when you purchased the vehicle. If you are unable to locate these documents, you may complete a Title Search (Form DO-22A) with the New Jersey Motor Vehicle Commission. There is a $15 fee for this search, which will provide you with proof of Sales Tax paid along with other information regarding the vehicle. You can request Form DO-22 by calling 609-292-6500.
The following are only general guidelines. For questions about whether a specific purchase of an aircraft is taxable, you may contact the Casual Sales Unit at 609-984-6206.
I am buying an airplane. Do I have to pay tax?
The purchase of an airplane may be subject to tax under N.J.S.A. 54:32B-3 of the New Jersey Sales and Use Tax Act. The Sales and Use Tax Act allows a casual sale exemption under N.J.S.A. 54:32B-2(u). The Sales and Use Tax Act defines a casual sale as one which is "... an isolated or occasional sale of an item of tangible personal property... by a person who is not regularly engaged in the business of making retail sales of such property where the item of tangible personal property was obtained by the person making the sale, through purchase or otherwise, for his or her own use." If the previous owner was using the airplane for his own personal use, then the subsequent sale qualifies as a casual sale under the law and Sales Tax is not due.
Examples of prior use of an aircraft by the previous owner that would cause the transaction to be taxable:
I am not a resident of New Jersey and want to store my airplane in New Jersey. Do I owe tax?
If you are not a resident of New Jersey, you do not owe Sales and Use Tax. However, you are a New Jersey resident for Sales and Use Tax purposes if you answer "yes" to any of the following questions:
I want to purchase an airplane and use it for rental/lease. Do I have to pay Sales Tax on the purchase?
No, the purchase qualifies as a sale for resale as long as your business is registered with New Jersey to collect and remit Sales Tax on the rental/lease of the airplane. To document the exemption on the purchase of the aircraft, you should issue the seller a fully completed resale certificate.
I am going to purchase an airplane out-of-state. If I bring the airplane back to New Jersey, is this taxable?
The purchase is taxable if the aircraft was purchased from an aircraft dealer, or an owner who used the aircraft for rental and/or leasing activity. An aircraft used by the prior owner for personal use is not taxable.
I am a New Jersey resident who purchased an airplane that I will keep in Delaware. Do I owe tax?
If you are keeping the airplane in a Delaware hanger, then tax is not due to New Jersey since this is not a New Jersey transaction. However, if you bring this airplane into New Jersey, you would owe Use Tax based on the value of the airplane at the time you brought it into this State, unless a valid exemption applies.
If I trade airplanes with someone, is this taxable?
Subsequent transfers qualify as casual sales under the law and tax is not due as long as both owners used the airplanes for their own personal use.
I purchased an airplane through a broker(s). Do I owe Sales Tax?
The casual sales exemption is unavailable and tax is due if the broker runs the funds through his books/account. In other words, if the money is deposited in a broker's account for later disbursement, this will render the broker a dealer because the broker will then be acting as a reseller. If the broker simply connects the buyer and the seller for a fee, the buyer pays the seller directly and the airplane had been purchased for the seller's own use. This is a casual sales transaction and no tax is due.
I purchased an airplane out-of-state and I had to make payment through an escrow agent. Is this taxable?
No, this is not a taxable transaction. Escrow agents are not considered brokers, because the only involvement they have with the transaction is to hold the funds for the two interested parties (for example, the funds are not run through the escrow agent's books/account).
If I build a homebuilt aircraft from a kit, is the kit taxable?
Yes, Sales and Use Tax would be due on the purchase of the kit and all accessories.
Can I contact someone in the Division if I have additional questions?
The Casual Sales Unit handles all aircraft transactions. You can contact the unit at 609-984-6206.
What is the definition of boat or other vessel?
A boat or other vessel is a means of conveyance for travel on water and propelled otherwise than by muscular power, such as a motorboat, sailboat, yacht, and cruiser.
Does the law apply to leases and rentals of boats or other vessels?
Yes. The partial Sales Tax exemption (half of the applicable Sales Tax rate) and the $20,000 Sales Tax cap (maximum amount of Sales and Use Tax the State can collect on an eligible sale) also apply to leases and rentals of boats or other vessels.
Does the law apply only to noncommercial boats or other vessels?
No. The partial Sales Tax exemption (half of the applicable Sales Tax rate) and the $20,000 Sales Tax cap apply to commercial and noncommercial boats and other vessels.
NOTE: Several types of commercial boats and vessels are currently exempt from Sales Tax in full. More information is available at "Head Boat" Exemption.
What are examples of items that ARE NOT entitled to the partial Sales Tax exemption (half of the applicable Sales Tax rate) and the $20,000 Sales Tax cap?
The partial Sales Tax exemption (half of the applicable Sales Tax rate) and the $20,000 Sales Tax cap do not apply to sales, rentals, and leases of:
Sales, rentals, and leases of these items are subject to the full Sales Tax rate unless another statutory exemption applies (e.g., sales of tangible property made by qualified sellers in Salem County or in an Urban Enterprise Zone).
Do the partial Sales Tax exemption (half of the applicable Sales Tax rate) and the $20,000 Sales Tax cap apply to sales, leases, and rentals of personal watercraft?
Yes. The partial Sales Tax exemption (half of the applicable Sales Tax rate) and the $20,000 Sales Tax cap apply to sales, leases, and rentals of personal watercraft.
Personal watercraft means a power vessel defined as a Class A vessel by the United States Coast Guard, and which:
Do the partial Sales Tax exemption (half of the applicable Sales Tax rate) and the $20,000 Sales Tax cap apply to sales, leases, and rentals of canoes and kayaks?
No. Based on the definition above, the Division has determined that sales, leases, and rentals of canoes and kayaks are not entitled to the partial Sales Tax exemption (half of the applicable Sales Tax rate) or the $20,000 Sales Tax cap. Sales, rentals, and leases of canoes and kayaks are subject to the full Sales Tax rate unless another statutory exemption applies (e.g., sales of tangible property made by qualified sellers in Salem County or in an Urban Enterprise Zone).
Do the partial Sales Tax exemption (half of the applicable Sales Tax rate) and the $20,000 Sales Tax cap apply to used and brokered boats or other vessels?
Yes. The law does not distinguish between new and used boats or other vessels, so brokered sales (in which a dealer acts as a go-between for the seller and the purchaser) and casual sales (sales between individuals with no broker) are eligible for the partial Sales Tax exemption (half of the applicable Sales Tax rate) and the $20,000 Sales Tax cap.
Does the partial Sales Tax exemption (half of the applicable Sales Tax rate) apply to services, parts, and labor?
No. The law only applies to sales, rentals, and leases of boats or other vessels. Charges for all services (repairs, maintenance, etc.), parts, and supplies are subject to the full Sales Tax rate unless another statutory exemption applies (e.g. sales of tangible property made by qualified sellers in Salem County or in an Urban Enterprise Zone).
Do the partial Sales Tax exemption (half of the applicable Sales Tax rate) and $20,000 Sales Tax cap apply to new boats or other vessels sold as packages with trailers, motors, and accessories?
Trailers are separate and distinct from the boat or other vessels and are not eligible for the partial Sales Tax exemption (half of the applicable Sales Tax rate) or the $20,000 Sales Tax cap. The price for the trailer must be separately stated on the invoice for the boat or other vessel or the entire sales price will be subject to the full Sales Tax rate.
If the accessories and motors are included in the sales price of the boat or other vessel and are affixed at the time of purchase, the partial Sales Tax exemption (half of the applicable Sales Tax rate) and the $20,000 Sales Tax cap apply.
Are delivery charges imposed in connection with the sale of a boat or other vessel eligible for the partial Sales Tax exemption and the $20,000 Sales Tax cap?
The Sales and Use Tax Act defines delivery charges as charges by the seller for preparation and delivery to a location designated by the purchaser of personal property or services including, but not limited to, transportation, shipping, postage, handling, crating, and packing.
By law, delivery charges are part of the sales price of tangible personal property. Therefore, delivery charges charged by a seller in connection with the sale, lease, or rental of a boat or other vessel are eligible for the partial Sales Tax exemption (half of the applicable Sales Tax rate) and the $20,000 Sales Tax cap because the taxability of the delivery charges follows the taxability of the underlying boat or other vessel.
What is the tax treatment of sales of boats and other vessels that occurred prior to a law that took effect on February 1, 2016?
If the boat or other vessel is sold and physical delivery or transfer of title took place before February 1, 2016, the full Sales Tax rate applies. If the boat or other vessel is sold but physical delivery or transfer of title took place on or after February 1, 2016, the Sales Tax rate is half of the applicable. This applies whether or not payment has been made in whole or in part prior to delivery.
What is the tax treatment if the sale of the boat or other vessel occurs in Salem County or an Urban Enterprise Zone?
Qualified sales of boats and other vessels in Salem County or in an Urban Enterprise Zone already are entitled to a partial Sales Tax exemption (half of the applicable Sales Tax rate). The law does not allow a further reduction of this already reduced rate.
Note: However, sales of boats and other vessels in Salem County or in an Urban Enterprise Zone are entitled to the $20,000 Sales Tax cap.
Can I get a refund of Sales Tax if I was incorrectly charged 1) more than the half of the applicable Sales Tax rate or 2) an amount that exceeded the $20,000 Sales Tax cap on an eligible purchase of a boat or other vessel?
Yes, you may apply for a refund of Sales Tax paid to either the seller or the Division of Taxation. To request a refund from the Division, file a Claim for Refund (Form A-3730) within four years from the date you paid the Sales Tax and enclose all supporting documentation of the tax paid. We will refund the Sales Tax as long as the tax was erroneously or illegally, or was collected or paid unconstitutionally.
Notice Sales and Use Tax Partial Exemption and Maximum Sales and Use Tax Imposition Amount for Sales and Uses of Boats and Vessels; Establishes Grace Period for Use Tax Imposition on Certain Boats and Vessels used by Resident Purchasers
Frequently Asked Questions Bulk Sales