N.J. Admin. Code § 18:24-31.4

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

Section 18:24-31.4 - Partial sales tax exemption for retail sales of tangible personal property by a certified seller

(a) A certified seller may impose sales tax at 50 percent of the statutory rate on receipts from retail sales, subject to the exceptions stated in (b) and (c) below.

(b) This partial sales tax exemption does not apply to retail sales of motor vehicles, cigarettes, alcoholic beverages, or energy.

(c) The partial sales tax exemption does not apply to retail sales, rentals, or leases of manufacturing machinery, apparatus, or equipment. Such sales may be exempt from sales tax under the provisions of N.J.S.A. 54:32B-8.1 3. (see N.J.A.C. 18:24-4.1 through 4.8)

(d) In addition to being a qualified business, a certified seller must regularly operate a place of business for the purpose of making retail sales. Items of tangible personal property must be regularly exhibited and offered for retail sale at this location, and the place of business may not be utilized primarily for the purpose of online, catalog, or mail order sales.

(e) Only sales transactions that originate or are completed by the purchaser, in person at a certified seller's place of business within an enterprise zone or district qualify for the partial sales tax exemption. Either the purchaser must accept delivery at the seller's place of business within an enterprise zone or district, or the seller must deliver the tangible personal property directly from the seller's place of business within an enterprise zone or district. After a sale has been completed within an enterprise zone or district, the seller may deliver the tangible personal property to the purchaser at a location outside an enterprise zone or district.

1. Receipts from mail order, telephone, online, fax, and similar sales transactions are subject to sales tax at the regular rate when a certified seller delivers the order directly from the seller's place of business in the zone or district, to a location within this State.

N.J. Admin. Code § 18:24-31.4

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