N.J. Admin. Code § 18:24-7.12

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

Section 18:24-7.12 - Taxable and exempt services

(a) The following services, except as provided in this subsection, sold or purchased by a dealer of motor vehicles, are subject to tax; provided, however, that where the following services are performed on tangible personal property held for sale by the purchaser of such services, the performance of such services is not subject to tax:

1. Installing, maintaining, servicing, or repairing tangible personal property, where such services are sold by a dealer of motor vehicles, or any other person engaged in the performance of such services. Examples include, but are not limited to:

i. Detailing;

ii. Washing;

iii. Waxing;

iv. Installing electronic equipment; and

v. Repairing transmissions;

2. Storage of tangible personal property, including motor vehicles; and

3. Printing or imprinting tangible personal property, including motor vehicles. For example, etching of vehicle identification number.

(b) None of the services in (a) above are subject to tax when rendered with respect to trucks, tractors, trailers, or semi-trailers by a person who is not engaged, directly or indirectly through subsidiaries, parents, affiliates, or otherwise, in a regular trade or business offering such services to the public.

(c) Purchases of tangible personal property by any person engaged in the sale of the services in (a) above for use by that person in the performance of such services are not subject to tax where the property so purchased becomes a physical component part of the property upon which the services are performed or where the property so sold is later actually transferred to the purchaser of the service in conjunction with the performance of the service. For example, the purchase of parts, lubricants, brake and transmission fluids, and similar items is not subject to tax if such items will be transferred in the performance of the services enumerated in (a) above. The purchaser of such items should issue a fully completed Resale Certificate (Form ST-3) or other approved form to his or her supplier.

(d) The purchase or use by any person engaged in the sale of the services in (a) above of machinery, apparatus, equipment, tools, or supplies (not otherwise exempted by the Sales and Use Tax Act) is subject to tax.

(e) A separately stated and identified charge for a motor vehicle inspection by an official inspection station to obtain an approval sticker as provided under N.J.S.A. 39:8-1 et seq., is exempt from tax. The charge for any repairs or adjustments required to obtain an approval sticker for a motor vehicle as a result of an inspection failure is subject to tax as provided in (a) above.

(f) A separately stated and identified charge for towing a disabled or illegally parked motor vehicle by a wrecker truck or tow truck is exempt from tax. The term "towing" includes the use of special transportation equipment, such as a dolly or tilt bed truck.

N.J. Admin. Code § 18:24-7.12

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