The Atlantic City Luxury Tax applies to receipts from specified retail sales within Atlantic City. These include:
The Atlantic City Luxury Tax rate is 9% on sales – other than alcoholic beverages sold by the drink (beer, wine, etc.) and consumed on premises. (The Sales and Use Tax rate is charged at the reduced amount of 3.625%.) Atlantic City businesses collect a combined tax rate of 12.625% on the specified retail sales.
Alcoholic beverages that are sold by the drink in Atlantic City are taxable at the combined rate of 9.625% (3% Atlantic City Luxury Tax and 6.625% New Jersey Sales and Use Tax).
Sales of packaged goods are subject only to New Jersey Sales and Use Tax at the rate of 6.625%.
The tax is not levied on casual sales, sales to New Jersey or its political subdivisions, sales exempt by federal law, and sales by a church or nonprofit charitable organization.
Applicable Laws and Rules