N.J. Admin. Code § 18:24-22.3

Current through Register Vol. 56, No. 24, December 18, 2024

Section 18:24-22.3 - Installation services

(a) Every person who installs floor covering is a contractor.

1. When a floor covering dealer performs an installation service, he or she is required either to pay sales tax at the time supplies for use in the installation service are purchased or to remit use tax upon the cost of supplies withdrawn from his or her sales inventory for use in the installation service. Supplies include, but are not limited to:

i. Underlayment;

ii. Nails;

iii. Staples;

iv. Plywood strips;

v. Adhesive tape; and

vi. Cement.

2. A contractor who is not also a floor covering dealer is required to pay sales or use tax on the floor coverings he or she purchases for installation, as well as on supplies. (see N.J.A.C. 18:24-5.3)

(b) Receipts for the service of installing floor covering are subject to sales tax, regardless of whether the installation results in a capital improvement. See also N.J.A.C. 18:24-5.6(b)1 and 5.16(a)6vi.

N.J. Admin. Code § 18:24-22.3

Amended by 48 N.J.R. 824(a), effective 5/16/2016