N.J. Admin. Code § 18:24-7.10

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

Section 18:24-7.10 - Procedures for motor vehicle dealers; forms and certificates

(a) New Jersey motor vehicle dealers are required to execute and retain as a part of their records a Motor Vehicle Sales and Use Tax Exemption Report (Form ST-10) if a purchaser of a motor vehicle:

1. Is a nonresident of New Jersey;

2. Has no permanent place of abode in New Jersey; and

3. Is not engaged in carrying on in New Jersey any employment, trade, business, or profession in which the motor vehicle will be used in New Jersey or certifies that the motor vehicle has been contracted for delivery out-of-State (the state must be designated) and the dealer affirms that the vehicle has been delivered to the purchaser in such state. In all cases of sales to nonresidents, New Jersey motor vehicle dealers are required to forward a completed copy of Form ST-10 to the New Jersey Division of Taxation.

(b) The rules regarding the status of the purchaser of a motor vehicle as a resident of this State are set forth in N.J.A.C. 18:24-7.8(b).

(c) The sale of a warranty in conjunction with the sale of a motor vehicle which qualifies for exemption under this subsection is not subject to sales tax.

(d) A resale certificate may be accepted by a dealer or lessor of motor vehicles in cases of transactions with other licensed dealers, where the vehicle is purchased for resale or is being acquired for rental or leasing purposes. In all such cases, the purchaser's Certificate of Authority number, name, and address must be shown on each sales invoice, and each invoice must include the date of the transaction. The certificate itself must be retained in the dealer's files.

(e) An Exempt Organization Certificate may be accepted by a motor vehicle dealer where a vehicle is being acquired by an organization qualified pursuant to N.J.S.A. 54:32B-9(b)(1). A statement should be made on the invoice to the effect that the sale was made to an exempt organization. The Exempt Organization's Tax Identification Number must be shown on each such sales invoice. The certificate furnished by the organization must be retained in the dealer's files.

(f) Purchases of vehicles by the Federal Government or one of its agencies, or by the State of New Jersey or one of its agencies or political subdivisions, or by the United Nations or any international organization of which the United States is a member, are not subject to tax pursuant to N.J.S.A. 54:32B-9(a). A statement must be made on the invoice identifying the governmental agency to which the sale was made.

(g) Prior to titling a motor vehicle, it is required that motor vehicle dealers indicate on both the new car Manufacturer's Certificate of Origin and the used car Dealer's Certificate of Ownership the fact that the sales tax has been satisfied. In order to evidence this fact, the New Jersey sales tax satisfied stamp shall be used.

N.J. Admin. Code § 18:24-7.10

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