N.J. Admin. Code § 12:56-8.6

Current through Register Vol. 56, No. 23, December 2, 2024

Section 12:56-8.6 - Fair value computed

(a) Except whenever any determination made by regulation is applicable, the fair value to the employer of furnishing the employee with food and lodging is the cost of operation and maintenance including adequate depreciation plus a reasonable allowance for interest on the depreciated amount of capital invested by the employer.

(b) The fair value so computed shall not exceed the rental value of comparable facilities in the State.

(c) The cost of operation and maintenance, the rate of depreciation, and the depreciated amount of capital invested by the employer shall be arrived at in accordance with generally accepted accounting practices.

(d) Generally accepted accounting practices shall not include those rejected by the New Jersey Division of Taxation or the Federal Internal Revenue Service for tax purposes, and the term "depreciation" includes obsolescence.

(e) Items found to be primarily for the benefit of the employer shall not be included in the cost.

(f) Lodging furnished which is in violation of any Federal, State, or local law, ordinance or prohibition shall be valued at nothing.

(g) When a fair market value does not exist for rental of the lodging in the competitive open market, the fair market value shall be zero.

N.J. Admin. Code § 12:56-8.6

Amended by R.1990 d.520, effective 11/5/1990.
See: 22 New Jersey Register 2235(a), 22 New Jersey Register 3379(b).
In (c) and (d): added "generally accepted" to define accounting practices.
Amended by R.1995 d.553, effective 10/16/1995.
See: 27 New Jersey Register 2868(a), 27 New Jersey Register 3958(a).
Added (g).