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Division of Taxation

NOTICE Outdoor Advertising Fee (P.L. 2003, c.124) Effective July 1, 2003

Recently enacted legislation imposes a fee of 6% on the gross amounts collected by a retail seller for billboard advertising space. The fee is imposed directly on the retail seller (the person contracting with the customer) of the advertising space. This Act took effect on July 1, 2003 and applies to gross receipts collected through June 30, 2004.

This Act defines "billboard" as any outdoor advertising sign permitted pursuant to the "Roadside Sign Control and Outdoor Advertising Act," P.L.1991, c.413 (C.27:5-5 et seq.). The Roadside Sign Control and Outdoor Advertising Act defines "sign" as any outdoor display or advertising on real property within public view which is intended to attract, or which does attract, the attention of pedestrians or the operators, attendants, or passengers of motor vehicles using the roads, highways and other public thoroughfares and places, and shall include any writing, printing, painting, display, emblem, drawing, sign, or other device whether placed on the ground, rock, trees, tree stumps or other natural structures, or on a building, structure, signboard, billboard, wallboard, roofboard, frame, support, fence, or elsewhere, and any lighting or other accessories used in conjunction therewith. N.J.S.A. 27:5-7.

This legislation defines "gross amounts collected by a retail seller for billboard advertising space" to include amounts collected from contracts that involve placing advertising on billboards located in this State regardless of the location of the advertiser. However, such gross amounts do not include fees received by an advertising agency that is not a related party of the retail seller and that are not received by the retail seller.

The fees will be reported and paid on a quarterly basis and the first return will be due October 15, 2003, for the period of July 1 to September 30. Information on the method and manner of remittance will be supplied as soon as it becomes available.

Last Updated: Monday, 04/27/20