N.J. Admin. Code § 18:24-32.4

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

Section 18:24-32.4 - Payments, collection, and remittance of tax

(a) The legal incidence of the sales tax on leases and rentals falls upon the lessee.

1. The lessee pays the tax to the lessor on short-term and long-term rentals and leases.

(b) The lessor's collection and remittance obligations are as follows:

1. The lessor must collect the sales tax from the lessee on both short-term and long-term rentals and leases;

2. The lessor must separately state the sales tax on invoices, billing slips, and similar documents given to the lessee;

3. When the lease agreement is for a term of more than six months, the lessor must remit the full amount of tax due on the lease at the time of filing the monthly or quarterly sales and use tax return for the period when the leased property was delivered to the lessee in New Jersey, regardless of whether the tax is calculated on the lessor's original purchase price of the property or on the total of the periodic payments required under the lease agreement;

4. When the lease is for a term of six months or less, the lessor must charge the lessee sales tax at the time of each periodic payment and must remit the tax at the time of filing the monthly or quarterly sales and use tax returns for the periods when the periodic payments are charged to the lessee; and

5. The lessor may be held personally liable for unremitted tax.

N.J. Admin. Code § 18:24-32.4

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