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Frequently Asked Questions
Personal Income Tax
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Sales and Use Tax
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Personal Income Tax
Have the New Jersey income tax rates changed this year?
No, the New Jersey income tax rates for 2015 remain the same as the rates that were in effect for 2010.
For further information view
How do I check the status of my New Jersey income tax refund?
- New Jersey tax table and tax rate schedules used to calculate the amount of income tax due on returns for tax year 2015.
- New Jersey withholding tables.
You can get information on the status of your New Jersey income tax refund either online or by phone.
- Online Inquiry
- Phone Inquiry: 1-800-323-4400 (toll-free within NJ, NY, PA, DE, and MD) or
609-826-4400 (anywhere). This service is available 7 days a week (hours may vary). You will need the social security number that was listed first on your return and the amount of the refund requested when you call.
The automated systems can tell you if and when your refund was mailed or the date it was deposited into the bank account you designated when filing. (Direct deposit is only available on resident income tax returns filed electronically or filed on forms that were prepared and printed using approved tax software). The systems also allow you to begin the procedure to trace a lost refund check.
If you filed a paper return, information on the status of your refund will not be available for a minimum of 12 weeks from the time the return was mailed. Paper returns are not logged in as they are received. Division of Taxation personnel cannot verify receipt of your return until processing has begun, and the return appears in our computer system.
You can also perform an online search to determine if your refund check was returned to the Division of Taxation by the U.S. Postal Service because of an invalid mailing address. If you discover that your check was returned, you can submit a claim form online to have it reissued.
If you do not have access to a Touch-tone phone, or if you need information about the status of a prior-year refund, call the Customer Service Center at 609-292-6400 during normal business hours to speak to a Division of Taxation representative.
How do I know if my New Jersey tax return was received?
Electronic (Paperless) Returns: If you used NJ WebFile or NJ Fill’nFile, you will receive a confirmation number that serves as proof that your return was successfully filed. Note: Your return is not filed until you receive your confirmation number. If you filed your return using approved commercial software such as TurboTax, the software company will notify you about the receipt of your return. If you had a tax practitioner file your return electronically, the practitioner should notify you as to whether your return was accepted for filing.
Paper Returns: Paper returns and payments are not logged in as they are received. Division personnel cannot verify receipt of your return until processing has begun, and the return or payment appears in our computer system.
I received only one “State” copy of my W-2, and I have more than one state return to file. What should I do?
New Jersey will accept a photocopy of your W-2 form(s), provided that the copy is legible.
I used one of the electronic filing methods. Do I have to send you my W-2 form(s)?
When you file your return electronically it is not necessary to submit paper copies of any supporting documents unless you are specifically requested to do so by the Division of Taxation. This includes your W-2s, 1099s, tax statements, or documents that establish the income, exemption(s), or deduction(s) you reported on your return. However, you should keep these documents for your records, as you may be asked to submit them at a later date. And, if you file an amended return, you must submit all supporting schedules, forms, or documents you would have enclosed if you had filed your original return on paper.
I filed my return using commercial software, and I have questions. Who can help?
The New Jersey Division of Revenue’s Alternative Filing Branch is responsible for returns that are electronically filed using commercial software such as TurboTax. For answers to questions concerning the e-file program, including questions on document control numbers (DCNs), contact the Division of Revenue's E-File Hotline at 609-292-9292.
I lived in New Jersey for only part of the year. Which return do I file, resident or nonresident?
If you became a resident of New Jersey or moved out of the State during the year and your income from all sources for the entire year is more than $20,000 ($10,000 if filing status is single or married/CU partner, filing separate return), you must file a New Jersey resident income tax return (Form NJ-1040) and report any income you received while a resident of New Jersey. If you had any income from New Jersey sources while you were a nonresident, you may also need to file a New Jersey nonresident return (Form NJ-1040NR). View additional information on filing a part-year return.
Are Social Security benefits taxable for New Jersey income tax purposes?
No. Federal Social Security benefits are not subject to New Jersey income tax and should not be included on the New Jersey income tax return. Likewise, Social Security should not be reported on the property tax credit application, Form NJ-1040-H.
Are unemployment, disability payments, or family leave insurance taxable for New Jersey income tax purposes?
Unemployment compensation is not subject to New Jersey income tax and should not be included on the New Jersey income tax return. Likewise, temporary disability (including family leave insurance benefits) received from the State of New Jersey or as third party sick pay is not subject to New Jersey income tax and should not be included on the New Jersey income tax return.
Is the Federal deduction for general sales taxes paid applicable for New Jersey income tax purposes?
No, New Jersey law does not allow a deduction from income for sales taxes paid.
On the Federal return I am claiming a deduction for amounts paid for health insurance for my child who was age 26 at the end of 2015. Can I claim this deduction on my New Jersey income tax return?
For Federal purposes you may be able to deduct amounts paid for health insurance for any child of yours who was under age 27 at the end of 2015. However, for New Jersey purposes you may deduct such amounts as medical expenses only if the child was your dependent. For more information see Technical Advisory Memorandum TAM 2011-14.
Are property tax relief benefits such as the homestead benefit or property tax reimbursement (Senior Freeze) taxable?
For New Jersey income tax purposes, the homestead benefit and property tax reimbursement (Senior Freeze) payments are not taxable and should not be reported on the New Jersey income tax return.
Information on the Federal income tax treatment of these payments, called "recoveries" by the IRS, can be found in the Federal Form 1040 instructions and IRS Publication 525, Taxable and Nontaxable Income, which are available on the IRS website.
I made a mistake when I filed my New Jersey return. How do I correct it?
To amend your New Jersey resident income tax, file Form NJ-1040X for the appropriate year. You must file a paper Form NJ-1040X whether you filed your original return electronically or on paper.
New Jersey does not have a special form for amending nonresident returns. To amend a nonresident return, you must file a paper Form NJ-1040NR for the appropriate year. Write the word "Amended" in bold letters in the upper right-hand corner of the return.
What are the mailing addresses for the income tax returns?
The mailing address for your New Jersey return and/or payment depends on the form you are filing and whether you are due a refund or making a payment. View the list of mailing addresses.
Why did (didn’t) I receive a Form 1099 from New Jersey?
Forms 1099-G and 1099-INT are reports of income you received from the Division of Taxation during the tax year. The IRS requires government agencies to report certain payments made during the year because those payments are considered taxable income for the recipients. The Division of Taxation must report any refund or overpayment credit amount issued during the tax year to individuals who claimed itemized deductions on their income tax returns for the year. We must also report any interest paid on refunds. The IRS requires that refund and interest amounts be reported on two separate forms: Form 1099-G and Form 1099-INT. The State of New Jersey does not mail Form 1099-G, Certain Government Payments, to report the amount of a State tax refund a taxpayer received. State income tax refunds may be taxable income for Federal purposes for individuals who itemized their deductions on their Federal tax return in the previous year. Taxpayers who need this information to complete their Federal return can view or print their 1099-G information online. For more information see Frequently Asked Questions Form 1099-G and Form 1099-INT
Note: Form 1099-G statements for unemployment insurance benefits are not issued by the Division of Taxation, but by the Division of Unemployment Insurance within the Department of Labor and Workforce Development. For more information, visit their website.
How can I get New Jersey tax forms?
New Jersey income tax forms are available on our website.
How do I get a copy of a New Jersey income tax return that I filed?
You can get a copy of a previously filed New Jersey income tax return by completing Form DCC-1. There is a fee of $1.00 per side of the return. Mail the completed form, with payment, to: New Jersey Division of Taxation, Document Control Center, PO Box 269, Trenton, NJ 08695-0269.
You can also get copies of previously filed New Jersey income tax returns (Form NJ-1040, NJ-1040NR, or NJ-1041) by delivering a completed Form DCC-1 with the appropriate payment to a Division of Taxation Regional Office. Regional Offices can provide copies of such returns only to the person(s) who signed the requested tax return or to the authorized representative of the taxpayer(s) who provides a Form M-5008-R, Appointment of Taxpayer Representative, that covers the requested return(s). A photo ID of the taxpayer (or the taxpayer’s authorized representative) is required.
Payment for copies of tax returns can only be made by check or money order; payment cannot
be made in cash or by credit card.
How do I get a replacement for an old (stale-dated) check or a check that was lost, stolen, or destroyed?
Old (stale-dated) Checks.
If you have the old (stale-dated) check in your possession, return the original check to the New Jersey Division of Taxation with a letter requesting a replacement check to the address below. Be sure to keep a photocopy of the check for your records.
NJ Division of Taxation
Taxpayer Accounting Branch
PO Box 266
Trenton NJ 08695-0266
Lost, Stolen, or Destroyed Checks.
If you do not receive your check within 30 days of the date the check was issued, or if you received a check that was subsequently lost, stolen, or destroyed, you can request a replacement check. Call the Customer Service Center at 609-292-6400 and speak to a Division Representative. The Division will file a check tracer on your behalf.
Due to the volume of claims, please allow up to 30 days for a replacement check to be issued.
You can also request a check tracer for your New Jersey income tax refund check for the current year by calling the Division’s Automated Refund Inquiry System at 1-800-323-4400 (Touch-tone phones within NJ, NY, PA, DE and MD) or 609-826-4400 (Touch-tone phones anywhere).
I live in New Jersey but work in Pennsylvania. My employer withheld Pennsylvania income tax from my wages. What do I do?
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As a result of the Reciprocal Personal Income Tax Agreement between the State of New Jersey and the Commonwealth of Pennsylvania, New Jersey residents who receive compensation from Pennsylvania sources are not subject to Pennsylvania income tax on those earnings. If you are a New Jersey resident and Pennsylvania income tax was withheld from wages you earned there, you must file a Pennsylvania return to get a refund. To stop the withholding of Pennsylvania income tax, complete Form REV-419 EX, Employee’s Nonwithholding Application Certificate, and give it to your employer. More information is available on the Pennsylvania Department of Revenue website or by calling 1-717-787-8210.
In addition, if your Pennsylvania employer did not withhold New Jersey income tax, you must pay the amount due to New Jersey and may be required to make estimated tax payments.
More information about the Reciprocal Personal Income Tax Agreement between New Jersey and Pennsylvania.
Am I eligible for the 2014 homestead benefit?
The amount appropriated in the State Budget for property tax relief programs affected homestead benefits for 2014. Only homeowners who meet the eligibility requirements, including the income requirements, can receive homestead benefits for 2014.
- I received a 2014 Homestead Benefit Application Packet for a vacation home that I own at the New Jersey shore. Am I eligible for a homestead benefit?
No. You are not eligible for a homestead benefit and you should not file an application. One of the eligibility requirements is that you must occupy the property as your principal residence on October 1, 2014. A principal residence is the home that you actually and continually occupy as your permanent residence. You are not eligible for a benefit for your vacation home, your “second” home, or a property you owned and rented to someone else.
- I am delinquent in paying my property taxes. May I still file for a homestead benefit?
- My husband and I file our homestead benefit jointly. He is over 65 and I am under. Do we go by the eligibility requirements for over 65 because he is over 65 or the requirements for under 65 because I am under 65?
Since you and your husband file jointly, as long as one of you is 65 or older (or blind or disabled), you meet the eligibility requirements for age 65 or older or blind or disabled.
- My spouse and I file our homestead benefit using filing status 3, Married/CU Partner, filing separately. We each maintain a separate residence. My spouse is disabled and I am not. What eligibility guidelines should I follow? What if we file using filing status 6, Married/CU partner, filing separate, both maintaining the same residence?
When filing using filing status 3 and maintaining separate residences, you each file a separate application. Only the individual who is age 65 or older or blind or disabled should answer “Yes” to the age and/or disability question on the application.
When filing using filing status 6, Married/CU partner, filing separate, both maintaining the same residence, you file one application for both of you. As long as one of you is 65 or older (or blind or disabled), you meet the eligibility requirements for age 65 or older or blind or disabled.
- My spouse and I each earned income that is below the income limit, but our combined income is higher than the limit. Do we qualify? We maintain the same principal residence.
No. The income limits apply to a single individual, a married/civil union couple living in the same residence, and a married/civil union partner maintaining a residence separate from their spouse/civil union partner.
When and how can I file my homestead benefit application?
Can I check the status (amount) of my 2013 homestead benefit?
Most homeowners will file their applications either online or by phone.
You can get information on the status (amount) of your homestead benefit
either online or by phone.
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- How will I know if I am getting a credit from my 2014 homestead benefit and how much it will be?
Most homeowners get a credit. Your tax collector will issue you a property tax bill or advice copy reflecting the amount of your benefit. View more information on the benefit payment.
- The Division applied my 2013 homestead benefit to my 2016 property taxes. Since my mortgage company pays my property taxes from an escrow account, how will this affect the amount of my mortgage payments?
Your mortgage payments will likely not change as a result of your homestead credit until your mortgage company conducts your annual escrow account analysis. Please contact your mortgagor with additional questions.
- I owned a home in New Jersey on October 1, 2014, but have since sold it and moved. How will I get my 2014 benefit?
If you sell your home before filing your homestead benefit application (or you plan to close on the sale before November 30, 2016), you should answer “No” to the question asking whether you still own the property when you file your homestead benefit application. In this case, the Division will issue your homestead benefit by check (or direct deposit). See Homestead Benefit Information for Homeowners Who Sold or Plan to Sell Their Homes for more information.
- I live in a co-op and do not receive a property tax bill from my municipality. How will I get my 2014 benefit?
If your principal residence was a unit in a co-op or continuing care retirement community, we will issue any homestead benefit you are eligible to receive by check (or direct deposit).
How do I register for a New Jersey tax identification number? How do I register a business?
A business must complete and file Form NJ-REG (Business Registration Application) to register with the State to collect/remit New Jersey taxes such as sales tax or employee withholdings, and to obtain a New Jersey tax identification number. You can register a business online or file a paper application. For additional information on registering your business visit the Division of Revenue website
I have a business in another state and am coming to New Jersey for a trade/craft show. Do I have to register?
Anyone who makes retail sales in this State, including sales at flea markets, craft shows, or trade shows, is doing business in New Jersey and must comply with the State’s tax laws. New Jersey law requires all vendors, even seasonal businesses and “one-time” vendors, to register with the State for tax purposes at least 15 business days before starting business, and to collect New Jersey sales tax on all sales of taxable tangible personal property or services. There are no special provisions for temporary vendors. Once registered, you must file all required returns until you properly end your tax registration with New Jersey.
File Form NJ-REG (Business Registration Application) to register with the State to collect/remit New Jersey taxes such as sales tax or employee withholdings, and to obtain a New Jersey tax identification number. You can register online or file a paper application. For additional information on registering your business visit the Division of Revenue website
Also see publications ANJ-11, Arts & Crafts Businesses and New Jersey Sales Tax,
ANJ-15, Flea Markets & New Jersey Sales Tax,
and ANJ-13, Ending Your Tax Registration in New Jersey,
available at the Division's Sales and Use Tax Publication page
How do I add (end) a specific tax eligibility once my business is registered?
You can add or end eligibility for specific taxes either online or by filing a paper Form REG-C-L, Request for Change of Registration Information. Visit the Division of Revenue's site for more information
The procedures to be followed to end your business depend upon the type of business entity you have (sole proprietorship, partnership, corporation, etc.) and the taxes for which you are registered. For details, please see publication ANJ-13, Ending Your Tax Registration in New Jersey
New Jersey’s procedures for corporate dissolution require that all documents for dissolution or withdrawal, including the request for the tax clearance, be submitted together as a package to the Division of Revenue. For additional information, including the necessary forms and instructions, go to the Division of Revenue’s website
How can a business change its address?
You can change the address for a business account either online or by filing a paper Form REG-C-L, Request for Change of Registration Information. Change an address online or to obtain a copy of Form REG-C-L
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Sales and Use Tax
Why can’t I submit Form ST-51 showing $0.00 due?
"Zero" monthly returns cannot be filed. When the amount due for any monthly period covered by Form ST-51 is $500 or less, you do not need to file a monthly return. Payment for that month must be made with the next quarterly return, Form ST-50.
You are only required to file a monthly sales tax return (Form ST-51) if:
- the amount of tax due is more than $500 and
- you collected more than $30,000 in sales and use tax in New Jersey during the preceding calendar year (January 1 – December 31)
NOTE: If you collected $30,000 or less in New Jersey sales and use tax in the prior calendar year, do not file Form ST-51 for the first or second month of any quarter. Visit the Division's website for more information.
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When I try to file online and make my quarterly sales tax payment by e-check, the system will not let me enter today’s date as the settlement date. Today is the due date. What should I do so that my payment is not late?
When you file online or by phone and make your payment by electronic check (e-check), the earliest settlement date (date the payment will be debited from your account) you can select is the next business day. No matter which payment method you select, if your payment transaction is initiated by 11:59 p.m. on the due date, your payment will be considered timely even if the settlement date is after the due date.
What is the New Jersey sales tax rate?
The State of New Jersey’s sales and use tax rate is seven percent (7%). However, there are exceptions to this statewide rate. In Urban Enterprise Zones, UEZ-impacted business districts, and in Salem County, sales tax may be charged at 3.5% (50% of the regular rate) on certain items. In addition, local sales taxes are imposed on sales of certain items sold in Atlantic City and Cape May County. For additional information, see Tax Topic Bulletin S&U-4, New Jersey Sales Tax Guide.
View a sales tax collection schedule (ST-75) for the Statewide 7% sales and use tax.
Are shipping and handling subject to sales tax?
Effective October 1, 2005, the law provides for a new definition of "delivery charges." For transactions occurring on or after October 1, 2005, handling charges are included within the definition of delivery charges, and are therefore exempt from tax whether or not they are separately stated to the purchaser.
Prior to October 1, 2005, a separately stated charge for the transportation (shipping) of tangible personal property from the vendor to the customer was not subject to New Jersey sales tax. Depending on the circumstances, a separately stated “handling” charge could be considered part of the taxable receipt (amount on which sales tax is due) because it occurs prior to actual shipment. However, when “shipping and handling” charges were billed together, both amounts were considered exempt transportation charges for New Jersey sales tax purposes.
As of October 1, 2006, the exemption for delivery charges imposed by the seller is repealed for taxable goods and services. For deliveries on and after October 1, 2006, if a shipment includes both taxable and exempt property, the seller should allocate the delivery charge based on either the total sales price or the total weight, and collect tax on the portion of the delivery charge allocated to the taxable goods. In such mixed transactions, if the seller does not allocate the delivery charge, the entire delivery charge is taxable.
Why can't I submit ACH Credit payments when I submit the tax return on your Website?
There is no provision for ACH Credit payers to initiate the payment through the online filing system. Only ACH Debit registrants can complete the EFT transaction online. If you are registered for ACH Credit, please use your regular EFT method of payment (outside the online filing system) to initiate your payment transaction
I recently switched banks. How do I update my bank account information for making ACH debit payments?
ACH debit customers can update their bank account information as follows:
- Online. Log on using your New Jersey ID Number and the PIN you received when you enrolled in the EFT program and then choose “Maintain Enrollments.” Your account information will be updated immediately.
- Fax or mail a completed Revision Request for Automated Clearing House (ACH) Debit Account Payments, which is available on the Division of Revenue’s website. Allow 15-20 business days from the beginning date for the new account for the revision request to be to be processed.
If the due date for your payment is imminent, you may need to select another payment method until your bank information is updated. View information on electronic payment options. Back To Top
I need my PIN to file my business tax return. How can I get my PIN?
To use the online filing and payment services for business taxes, you must enter your 12-digit Federal or New Jersey Taxpayer Identification Number and either the first four characters (letters or numbers) of your registered business name or the 4-digit Personal Identification Number (PIN) assigned to the business. However, if you login using the business name, you will not be able to view any returns or payments previously submitted or to select the Electronic Funds Transfer (EFT) payment option. A PIN is required for full access to all options.
If you need to obtain your PIN, you can submit a request to have it sent to you by e-mail. Request PIN.
For immediate assistance with filing your return or making a payment, call the Division of Taxation’s Customer Service Center at 609-292-6400, or visit one of the Taxation Regional Offices.
Motor Vehicle Casual Sales Notices
What does N.A.D.A. stand for?
National Automobile Dealers Association.
Why did I receive this notice? I already gave the information to the Division of Motor Vehicles.
By law, the Director of the NJ Division of Taxation must certify that the correct amount of sales tax has been paid on the actual purchase price of the vehicle. If a sales tax exemption was claimed, the Director must certify that no sales tax was due.
What will happen if I do not respond to the notice?
Failure to respond to the notice may result in an assessment of the tax due based on the vehicle’s N.A.D.A value.
How do I check the status of the paperwork I mailed in response to the notice?
To check on the status of paperwork previously submitted, contact the Division of Taxation Casual Sales Unit at 609-984-6206 or by email at firstname.lastname@example.org.
Please Note: Emails sent to the above-referenced address are not secure. No confidential information, such as Social Security or Federal Tax Identification numbers, dates of birth or bank account numbers should be included in your email. Please make sure that this information is not included in any attachments you provide.
Why have I received a second notice?
A Second Notice is sent when no response is received from the first inquiry. If you have received a second notice for the same transaction, and you previously sent in correspondence, contact the Division of Taxation Casual Sales Unit by email at email@example.com or by phone 609-984-6206.
Please Note: Emails sent to the above-referenced address are not secure. No confidential information, such as Social Security or Federal Tax Identification numbers, dates of birth or bank account numbers should be included in your email. Please make sure that this information is not included in any attachments you provide.
Will I be notified that the documents I mailed were sufficient and no further sales tax is due?
If the Division determines additional documentation is necessary to complete a review of the account, a follow-up notice will be mailed to you. If the documentation is complete a closed inquiry letter may be issued upon request.
Do I have to complete the Affidavit at the bottom of the Questionnaire?
Yes. When completing the Questionnaire, it is required that the Purchaser’s Affidavit be completed. Based on the type of vehicle transfer the Seller’s Affidavit may also need to be completed.
The vehicle was a gift. How do I show proof of that?
If the vehicle was free and clear of any lien, check the appropriate box on the Questionnaire and complete the Buyer’s and Seller’s Affidavit.
If the vehicle was transferred with a lien, were you a co-owner on the original loan agreement or Title?
If you were a co-owner on the original loan agreement or Title, there is no tax due. Check the appropriate Verification of Exemption box on the Questionnaire and submit a copy of the original loan agreement or Title.
If you were not a co-owner on the original loan agreement or Title, tax is due on the principal loan amount assumed.
Example : You transferred the vehicle and assumed a $5,000 loan amount that was still remaining. You must pay 7% sales tax on the $5,000. Total sales tax due = $350. You must remit the sales tax due along with a copy of the Transfer of Equity paperwork to document the loan amount you assumed.
If you have questions pertaining to GIFT TAX, contact the IRS at 1-800-829-1040. This is a federal tax.
The vehicle was a gift however the donor is now deceased. What documentation should I submit?
You should check the appropriate box on the Questionnaire and complete the Purchaser’s Affidavit. The executor (trix) should complete the Seller’s Affidavit on behalf of the deceased donor and provide a copy of their surrogate certificate and the donor’s death certificate.
This vehicle was left to me in a will. What do I need to send in?
You should check the appropriate box on the Questionnaire (Gift), complete the Purchaser’s Affidavit, and enclose a copy of the will. If there is a lien on the vehicle then tax is due on the principal loan amount assumed.
The vehicle was in poor condition when I bought it. How do I prove that?
You may submit copies of major repair bills, estimates for repairs, accident reports, photographs, and complete the Questionnaire and Purchaser’s Affidavit. You may also have the seller complete the Seller’s Affidavit confirming the purchase price.
The vehicle was in poor condition and I made the repairs myself.
What type of documentation can I submit?
If you are unable to contact the seller to complete the Seller’s Affidavit, you should complete the Questionnaire and Purchaser’s Affidavit. In addition, you should prepare a statement indicating the purchase price and condition of the vehicle. You should also indicate what repairs you made and why there are no receipts for the repairs. You can include receipts for parts you may have purchased as well as photographs you may have of the vehicle before and after the repairs.
I did not report the correct purchase price when I registered the vehicle, however, I paid less than the N.A.D.A. value listed on the notice. What should I do?
You should have the seller complete the Seller’s Affidavit. If the seller is not available, you should submit a letter stating the correct purchase price and provide any information that will verify the purchase price along with the completed Questionnaire and Purchaser’s Affidavit. Your information will be reviewed and if additional tax is determined to be due a Notice of Adjustment will be mailed to you.
I paid cash for the vehicle and do not have a receipt. How can I prove the purchase price?
If you can produce a bank statement that documents the withdrawal, you can attach a copy to your completed Questionnaire and Affidavit. Your information will be reviewed. However, without proper proof of the vehicle purchase price, you may be assessed sales tax based on the N.A.D.A. value.
I cannot locate the seller to have them fill out the Seller's Affidavit. What should I do?
You should enclose a copy of the cash receipt, cancelled check or money order. You should provide a detailed letter regarding the transaction and provide the sellerís name and contact information, if available. Your information will be reviewed. However, if you cannot provide acceptable proof of the vehicle purchase price, you may be assessed sales tax based on the N.A.D.A. value.
Can I fax the completed Questionnaire and/or the sellerís Affidavit to the Division?
Yes. The fax number is (609) 292-9266.
I am a sole proprietor and I transferred this vehicle from my name to my business name. Is tax due on that transfer?
As a sole proprietor you would not have to pay any additional tax on that transfer. Complete the Questionnaire and Affidavit along with attaching any supporting documentation of the transfer.
The vehicle was purchased from a leasing company at the end of the lease period. What documents should I submit?
You should submit a copy of the lease purchase agreement which indicates the buyout figure and the amount of tax paid by the lessee.
I swapped vehicles with my friend. Is this taxable?
Yes. Swapping vehicles between two private parties is taxable. The tax is based on the Fair Market Value of the vehicle. Trading anything of value for a car is taxable.
Example #1: A person swaps a $5,000 boat for a 1991 Ford Escort. This is a taxable transfer. The tax is based on the Fair Market Value of the Ford Escort, which is the same value as the boat ($5,000 x 7% = $350 sales tax due).
I transferred the vehicle from my corporation to myself. Is this taxable?
Example #2: A person swaps a 1990 Ford Escort for a 1991 Ford Probe. In order to obtain the 1991 Ford Probe, the taxpayer gave $1,000 cash in addition to the 1990 Ford Escort. Tax is based on the Fair Market Value of the 1990 Ford Escort and the $1,000 cash.
Yes, unless the corporation was dissolved prior to the transfer and the vehicle was transferred to a stockholder as a liquidating dividend. If that is the case, submit a copy of the tax clearance certificate.
How can I obtain proof of sales tax paid to the dealer when the vehicle was purchased?Back To Top
This information can be found on the documents you received from the dealer when you purchased the vehicle. If you are unable to locate these documents, you may complete a Title Search (Form DO-22A) with the Motor Vehicle Commission. There is a $15 fee for this search which will provide you with proof of sales tax paid along with other information regarding the vehicle. You can request Form DO-22A by calling 1-888-486-3339 (within New Jersey) or 1-609-292-6500 (out of State).
Aircraft Purchases and Casual Sales
The following are only general guidelines. For questions about whether a specific purchase of an aircraft is taxable, you may contact the New Jersey Division of Taxation at 609-292-6400 or NJ.Taxation@Treas.NJ.Gov
I am buying an airplane; do I have to pay tax?
The purchase of an airplane is subject to tax under the New Jersey Sales and Use Tax Act. N.J.S.A. 54:32B-3(a). However, the Sales and Use Tax Act exempts receipts from the casual sales of aircraft. N.J.S.A. 54:32B-8.6. The Sales and Use Tax Act defines a casual sale as one which is “… an isolated or occasional sale of an item of tangible personal property… by a person who is not regularly engaged in the business of making retail sales of such property… where the item of tangible personal property… was obtained by the person making the sale, through purchase or otherwise, for his or her own use.” N.J.S.A. 54:32B-2(u). Thus, if the previous owner was using the airplane for his own personal use, then the subsequent sale qualifies as a casual sale under the law and sales tax is not due. On the other hand, if your purchase was from an aircraft dealer or the previous owner used the aircraft for rent or lease, then tax is due.
I am not a resident of New Jersey and want to store my airplane in New Jersey. Do I owe tax?
If you are not a resident of New Jersey, you do not owe sales and use tax. However, even if you are a resident of another state, you may still be considered a resident of New Jersey for sales and use tax purposes.
How can I determine if I’m considered a resident of New Jersey for sales and use tax purposes?
Please be aware that the issue of residency for sales and use tax purposes is fact specific. If you answer yes to any one of the following questions, you have established residency with the State of New Jersey for sales and use tax purposes:
- Are you a resident of New Jersey?
- Do you maintain a permanent place of abode in New Jersey? (A place of abode is a dwelling place maintained by a person, or by another for them, whether or not owned by such person, on other than a temporary or transient basis. The dwelling may be a house, apartment or flat; a room including a room at a hotel, motel, boarding house or club, or at a residence hall operated by an educational or charitable or other institution, or a trailer, mobile home, houseboat or any other premises).
- Are you engaged in trade, business or profession in New Jersey?
I want to purchase an airplane and use it for rental/lease. Do I have to pay sales tax on the purchase?
No, the purchase qualifies as a sale for resale as long as your business is registered with New Jersey to collect and remit sales tax on the rental/lease of the airplane. In order to document the exemption on the purchase of the aircraft, you should issue the seller a fully completed resale certificate.
I am going to purchase an airplane from the operator of an airfield who rents and leases airplanes. Is this taxable?
Yes, this is a taxable transaction. Please see question 1.
I am going to purchase an airplane from someone who runs a flight school. This person purchased the plane for resale and charges students for the rental of the plane. Is this taxable?
Yes, this is a taxable transaction.
I am going to purchase an airplane out-of-state. If I bring the airplane back to New Jersey is this taxable?
If the previous owner was using the airplane for his own personal use, then the subsequent sale qualifies as a casual sale and sales tax is not due. On the other hand, if your purchase was from an aircraft dealer or the previous owner held the aircraft out for rental or leasing purposes, then tax is due.
I am a New Jersey resident and purchased an airplane that I will keep in Delaware. Do I owe tax?
If you are hangering the airplane in Delaware then tax is not due to New Jersey since this is not a New Jersey transaction. However, if you bring this airplane into New Jersey, you would owe use tax based on the value of the airplane at the time you brought it into this State, unless a valid exemption applies.
If I trade airplanes with someone, is this taxable?
Subsequent transfers qualify as casual sales under the law and sales tax is not due so long as both owners used the airplanes for their own personal use.
I purchased an airplane through a broker(s). Do I owe sales tax?
The casual sales exemption is unavailable and tax is due if the broker runs the funds through his books/account. In other words, if the money is deposited in a broker's account for later disbursement, this will render the broker a dealer because the broker will then be acting as a reseller. If the broker simply connects the buyer and the seller for a fee, the buyer pays the seller directly and the airplane had been purchased for the seller’s own use, this is a casual sales transaction and no tax is due.
I purchased an airplane out-of-State and I had to make payment through an escrow agent. Is this taxable?
No, this is not a taxable transaction. Escrow agents are not considered brokers, because the only involvement they have with the transaction is to hold the funds for the two interested parties (e.g., the funds are not run through the escrow agent’s books/account).
If I build a homebuilt aircraft from a kit, is the kit taxable?
Yes, sales or use tax would be due on the purchase of the kit and all accessories.
Can I contact someone in the Division if I have additional questions?
The Casual Sales Unit handles all aircraft transactions. You can contact the Casual Sales Unit at 609-984-6206
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Boats and Other Vessels
- Partial Sales Tax Exemption (3.5% Sales Tax rate); $20,000 Sales Tax Cap
- What is the definition of “boat or other vessel”?
Based on legislative intent, a “boat or other vessel” is a means of conveyance for travel on water and propelled otherwise than by muscular power, such as a motorboat, sailboat, yacht, and cruiser.
- Does the new law apply to leases and rentals of boats or other vessels?
Yes. The statutory definition of “sale” includes leases and rentals, so the partial Sales Tax exemption (3.5% Sales Tax rate) and the $20,000 Sales Tax cap (maximum amount of Sales and Use Tax the State can collect on an eligible sale) also apply to leases and rentals of boats or other vessels.
- Does the new law apply only to noncommercial boats or other vessels?
No. The new law does not distinguish between commercial and noncommercial boats or other vessels, so the partial Sales Tax exemption (3.5% Sales Tax rate) and the $20,000 Sales Tax cap apply to both commercial and noncommercial boats or other vessels. (NOTE: Several types of commercial boats and vessels are currently exempt from Sales Tax in full.)
- Do the partial Sales Tax exemption (3.5% Sales Tax rate) and the $20,000 Sales Tax cap apply to sales, leases, and rentals of personal watercraft?
Yes. The partial Sales Tax exemption (3.5% Sales Tax rate) and the $20,000 Sales Tax cap apply to sales, leases, and rentals of personal watercraft.
“Personal watercraft” means a power vessel defined as a Class “A” vessel by the United States Coast Guard, and which:
a. Is designed to be operated from a sitting, standing or kneeling position;
b. Is equipped with an internal combustion engine which powers a water jet pump; and
c. Cannot be operated in a manner so as to disengage the pump so as to prevent the vessel from making headway.
- Do the partial Sales Tax exemption (3.5% Sales Tax rate) and the $20,000 Sales Tax cap apply to sales, leases, and rentals of canoes and kayaks?
No. Based on the definition above, the Division has determined that canoes and kayaks are not entitled to the partial Sales Tax exemption (3.5% Sales Tax rate) or the $20,000 Sales Tax cap. Thus, sales, rentals, and leases of canoes and kayaks are subject to the full Sales Tax rate of 7% unless another exemption provision applies (e.g., sales of tangible property made by qualified sellers in Salem County or in an Urban Enterprise Zone).
- Do the partial Sales Tax exemption (3.5% Sales Tax rate) and the $20,000 Sales Tax cap apply to used and brokered boats or other vessels?
Yes. The new law does not distinguish between new and used boats or other vessels, so brokered sales (in which a dealer acts as a go-between for the seller and the purchaser) and casual sales (sales between individuals with no broker) are eligible for the partial Sales Tax exemption (3.5% Sales Tax rate) and the $20,000 Sales Tax cap.
- Does the partial Sales Tax exemption (3.5% Sales Tax rate) apply to services, parts, and labor?
No. The new law only applies to sales, rentals, and leases of boats or other vessels. Therefore, charges for all services (repairs, maintenance, etc.), parts, and supplies are subject to the full Sales Tax rate of 7% unless another exemption provision applies (e.g. sales of tangible property made by qualified sellers in Salem County or in an Urban Enterprise Zone).
- What are examples of items that ARE NOT entitled to the partial Sales Tax exemption (3.5% Sales Tax rate) and the $20,000 Sales Tax cap?
The partial Sales Tax exemption (3.5% Sales Tax rate) and the $20,000 Sales Tax cap do not apply to sales, rentals, and leases of canoes, kayaks, paddleboards, paddleboats (other than mechanically powered), row boats, rafts, surfboards, and inflatable rafts with oars. Thus, sales, rentals, and leases of these items are subject to the full Sales Tax rate of 7% unless another exemption provision applies (e.g., sales of tangible property made by qualified sellers in Salem County or in an Urban Enterprise Zone).
- Do the partial Sales Tax exemption (3.5% Sales Tax rate) and $20,000 Sales Tax cap apply to new boats or other vessels sold as packages with trailers, motors, and accessories?
Trailers are separate and distinct from the boat or other vessel and are not eligible for the partial Sales Tax exemption (3.5% Sales Tax rate) or the $20,000 Sales Tax cap; therefore, the price for the trailer must be separately stated on the invoice for the boat or other vessel or the entire sales price will be subject to the full Sales Tax rate of 7%.
If the accessories and motors are included in the sales price of the boat or other vessel and are affixed thereto at the time of purchase, the partial Sales Tax exemption (3.5% Sales Tax rate) and the $20,000 Sales Tax cap apply.
- Are delivery charges imposed in connection with the sale of a boat or other vessel eligible for the partial sales tax exemption (3.5% sales tax rate) and the $20,000 sales tax cap?
The Sales and Use Tax Act defines “delivery charges” as charges by the seller for preparation and delivery to a location designated by the purchaser of personal property or services including, but not limited to, transportation, shipping, postage, handling, crating, and packing. N.J.S.A. 54:32B-2(rr). Delivery charges are part of the sales price of tangible personal property under the Sales and Use Tax Act. N.J.S.A. 54:32B-2(oo)(1)(D). Therefore, delivery charges charged by a seller in connection with the sale, lease, or rental of a boat or other vessel are eligible for the partial sales tax exemption (3.5% sales tax rate) and the $20,000 sales tax cap because the taxability of the delivery charges follows the taxability of the underlying boat or other vessel.
- What is the tax treatment of sales of boats and other vessels that occurred prior to the February 1, 2016, effective date of the new law?
The statutory definition of “sale” is any transfer of title or possession, for consideration. If the boat or other vessel is sold and physical delivery or transfer of title took place before February 1, 2016, the Sales Tax rate is 7%. If the boat or other vessel is sold but physical delivery or transfer of title takes place on or after February 1, 2016, the Sales Tax rate is 3.5%. This applies whether or not payment has been made in whole or in part prior to delivery.
- What is the tax treatment if the sale of the boat or other vessel occurs in Salem County or an Urban Enterprise Zone?
Qualified sales of boats and other vessels in Salem County or in an Urban Enterprise Zone are already entitled to a partial Sales Tax exemption (3.5% Sales Tax rate). The new law does not allow a further reduction of this already reduced rate. However, sales of boats and other vessels in Salem County or in an Urban Enterprise Zone are entitled to the $20,000 Sales Tax cap.
- Can a purchaser obtain a refund of Sales Tax if the purchaser was incorrectly charged more than the 3.5% Sales Tax rate or an amount that exceeded the $20,000 Sales Tax cap on an eligible purchase of a boat or other vessel?
Yes. If a purchaser was charged more than the 3.5% Sales Tax rate or an amount that exceeded the $20,000 Sales Tax cap on an eligible purchase of a boat or other vessel, the purchaser may apply for a refund of tax paid to either the seller or the State of New Jersey. The Division of Taxation will refund the tax so long as the tax was “erroneously, illegally or unconstitutionally collected or paid”. To request a refund from the Division, the purchaser must file a Claim for Refund (Form A-3730) within four years from the date of payment of the Sales Tax. The purchaser must enclose all supporting documentation of the Sales Tax paid in order to substantiate the claim.
Notice – Sales and Use Tax Partial Exemption and Maximum Sales and Use Tax Imposition Amount for Sales and Uses of Boats and Vessels; Establishes Grace Period for Use Tax Imposition on Certain Boats and Vessels used by Resident Purchasers
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Bulk Sale; Law and Procedures for the Filing of the C-9600 Form
Frequently Asked Questions – Bulk Sales
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