New Jersey imposes a Recycling Tax on solid waste facilities and solid waste collectors based on the amount of solid waste transported or accepted for disposal. The Recycling Tax is levied at a rate of $3.00 per ton of solid waste in transactions involving certain individuals or entities.
The Recycling Tax applies to the following individuals or entities:
Owners or operators of railroad transfer stations or other facilities designed exclusively to transport waste on railroads are not subject to the Recycling Tax.
All solid waste facility owners, operators, and solid waste collectors must register for the Recycling Tax. If you need to register your business or need to add the Recycling Tax eligibility to your account, you can do so online with the Division of Revenue and Enterprise Services.
Taxpayers should file and pay the Recycling Tax electronically, on a quarterly basis, by the 20th day of the month following the end of each quarter.
For the purposes of this tax, solid waste is limited to:
For the purposes of the Recycling Tax, Type 12 Dry Sewage Sludge is not solid waste. Regulated medical waste is also not subject to the Recycling Tax.
Details on the solid waste types listed above are available from the New Jersey Department of Environmental Protection.
Recycling Centers—The definition for a recycling center, whether Class A, B, C, or D, specifically excludes it from being considered a solid waste facility. In general, a recycling center is a facility designed and operated solely for receiving, storing, processing or transferring source separated recyclable materials (Class A, B, C, or D, recyclable material). Recycling centers do not include recycling depots, manufacturers, or scrap processing facilities.
While owners and operators of solid waste facilities and solid waste collectors are ordinarily subject to the tax, special rules providing a Recycling Tax exemption are available for the disposal of:
Is a Materials Recovery Facility or a Resource Recovery Facility a Solid Waste Facility?
A materials recovery and a resource recovery facility are types of solid waste facilities.
The Recycling Tax on solid waste generally applies to all types of solid waste facilities.
Must a Second Solid Waste Facility Pay the Tax When a Transfer Station Accepts Solid Waste, Pays the Recycling Tax, and Forwards the Waste to a Subsequent Facility?
New Jersey does not impose additional tax on solid waste transported from a New Jersey transfer station when the owner or operator of the transfer station is subject to the tax and the collector transports the solid waste to a New Jersey solid waste facility for disposal.
Does the Tax Apply if a Solid Waste Collector or Hauler Only Takes Waste to a New Jersey Facility or Recycling Center?
The tax applies when a collector or hauler takes the solid waste to a New Jersey rail yard facility or directly out of New Jersey for disposal. Companies located or operating in New Jersey still have an obligation to register their business. Solid waste collectors also register with the New Jersey Department of Environmental Protection.
Can a Subject Solid Waste Facility or Solid Waste Collector Pass-Through Costs of the Tax to Customers?
The law allows for the pass-through of the tax obligation from subject taxpayers to their customers in amounts equal to the tax obligation. The pass-through is available from solid waste facilities to solid waste collector customers at the time of the solid waste transfer. A pass-through is also available from solid waste collectors to solid waste generator customers.
Subject taxpayers may represent the pass-through of the obligation on their invoices or statement by electing any of the following methods authorized by the Act:
If you have additional questions, contact the following resources for assistance:
Business or tax registration issues: The Division of Revenue and Enterprise Services at 609-292-9292.
Solid waste or recycling concerns and authorizations, recycling extraction-rate questions: The New Jersey Department of Environmental Protection at 609-292-7081.
Tax questions: Email BusinessAssistanceTC.Taxation@treas.nj.gov.
Applicable Laws and Rules
N.J.A.C. 7:26-1 et seq., N.J.A.C. 7:26A-1 et seq. N.J.S.A. 13:1E-96.2-96.7, N.J.S.A. 13:1E-1 et seq., N.J.S.A. 40:66-1-12. N.J.S.A. 40A:11-1 et seq., N.J.A.C. 5:34-1 et seq., N.J.A.C. 5:30-5.1 et seq., N.J.A.C. 5:30-11.1 et seq.