Prior Year Sales and Use Tax Publications

Prior Year Sales and Use Tax Publications
S&U-6, Sales Tax Exemption Certificates
Introduction
The New Jersey Sales and Use Tax Act imposes
a tax of 6% on the receipts from every retail sale
of tangible personal property and some services.
Under certain conditions, exemptions are
provided for otherwise taxable items. This
bulletin explains the proper use and completion
of New Jersey exemption certificates when
making qualified exempt purchases.
NJ Exemption Certificates
Under New Jersey law, some items are exempt from
tax regardless of who buys them or how they are
used. Examples of exempt items include most
clothing, most items of food and drink (except when
sold in or by restaurants or similar establishments)
and prescription drugs. There are however, items
which are exempt from tax only under certain conditions. The New Jersey Division of Taxation issues
several exemption certificates which allow qualified
persons and businesses to purchase taxable merchandise and services tax free. Each exemption
certificate has its own specific use.
Agencies of the Federal government and the United
Nations as well as the State of New Jersey and its
political subdivisions are exempt from paying sales
tax. Sales tax is not charged if they provide the
vendor with a copy of a valid purchase order or
contract signed by an authorized official. See Note
on page 8 for further information.
Registration
All businesses must register with New Jersey for tax
purposes at least 15 business days before starting
business in this State. To register, a business registration application, Form NJ-REG, must be filed
with the State. You will receive a New Jersey Certificate of Authority, Form CA-1, for sales tax if you
have indicated on your application that you will
collect sales tax or purchase materials for resale.
This certificate is your authorization from the State
of New Jersey to collect sales tax and issue or accept
exemption certificates.
The Certificate of Authority will be printed with
your assigned identification number, which is usually based on your Federal identification number or
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Bulletin S&U-6
your social security number. This identification
number will appear on any other pre-printed forms
you receive from this Division. You must include
your identification number on all exemption certificates you issue.
Issuing and Accepting
Exemption Certificates
In general, both the purchaser who issues an exemption certificate and the seller who accepts it must
be registered with New Jersey.
The buyer issuing the exemption certificate must fill
it out completely, providing his New Jersey tax
registration number, the name and address of the
vendor, the merchandise or service being purchased
and any other information specified on the form.
Eligible nonregistered purchasers issuing exemption
certificates must provide one of the following:
1. Federal employer identification number of the
business; or
2. Out-of-State registration number; or
3. I.C.C. permit number; or
4. Social security number.
Nonregistered purchasers may issue the following
exemption certificates (under certain circumstances):
ST-3NR Resale Certificate for Non-New
Jersey Vendors
ST-4
Exempt Use Certificate
ST-7
Farmer’s Exemption Certificate
ST-8
Certificate of Capital Improvement
ST-16
Exemption Certificate for Student
Textbooks
However, the New Jersey seller accepting an exemption certificate must always be registered with
New Jersey.
Additional purchases by the same customer may be
covered by one exemption certificate provided the
merchandise purchased is of the same general type
or will be used for the same purpose.
Generally, out-of-State businesses wishing to make
exempt purchases in this State must register with
New Jersey. However, exceptions exist for drop
shipments and for “qualified out-of-State vendors”
making purchases in this State for resale. A drop
shipment occurs when an out-of-State purchaser who
is not registered with New Jersey instructs the New
Jersey vendor to deliver the merchandise to the
purchaser’s customer in New Jersey. The acceptable
resale certificates for a qualified out-of-State vendor
to use for a drop shipment are:
1. Purchaser’s out-of-State resale certificate; or
2. Multijurisdiction Uniform Sales & Use Tax
Certificate published by the Multi-State Tax
Commission; or
3. New Jersey Form ST-3NR.
See Resale Certificate for Non-New Jersey Vendors
(Form ST-3NR) on page 6 for information on
purchases for resale by “qualified out-of-State
vendors.”
Good Faith
To act in good faith means to act in accordance with
standards of honesty. In general, registered vendors
who accept exemption certificates in good faith are
relieved of liability for the collection and payment of
sales tax on the transaction covered by the exemption certificate. The business owner is presumed
to be familiar with the law and the regulations pertaining to his business, and to know when he can
issue or accept exemption certificates.
In order for good faith to be established, the following conditions must be met:
• Certificate must be an official form or a proper
and substantive reproduction;
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Sales Tax Exemption Certificates
• Certificate must be filled out completely and
correctly;
• Certificate must be dated and include the purchaser’s New Jersey tax registration number or,
for a qualified nonregistered purchaser, the
Federal employer identification number, out-ofState registration number, I.C.C. permit number
or social security number;
• Property purchased is of a type ordinarily used
in the purchaser’s business (in the case of a
business); and
• Seller has no reason to doubt that the purchaser
has the right, under the Sales and Use Tax Act,
to make an exempt purchase.
Example
Joe, of J and J’s Pharmacy, may issue a New Jersey
Resale Certificate, Form ST-3, to buy cosmetics for
resale. However, he may not use a resale certificate
to purchase tires for his delivery truck. The vendor
can determine from the information listed on the
ST-3 that Joe is clearly not in the business of selling
tires and the vendor may not accept an ST-3 for this
purchase.
Improper Certificates
Unless all the good faith conditions are met, the
seller may not accept the exemption certificate, and
must collect sales tax from the purchaser instead.
Sales transactions which are not supported by properly executed exemption certificates are considered
taxable sales. The burden of proof that the tax was
not required to be collected is on the seller.
Correcting Certificates
Businesses have up to sixty (60) days after the sale
is completed to obtain a corrected certificate if the
original exemption certificate lacked some necessary
information, or if the information was incorrectly
stated.
Rev. 12/98
Retaining Certificates
Certificates must be retained by the vendor for at
least four (4) years from the date of the last transaction covered by the certificate. Certificates must
be in the physical possession of the seller and available for inspection by the Division of Taxation.
Out-of-State Sales
If you sell taxable items to customers in another state
and the items sold are delivered out-of-State to the
purchaser, do not collect New Jersey sales tax. Your
records should show the out-of-State destination
point and you should keep evidence of the method of
delivery to that location such as parcel post receipts,
bills of lading, etc. For more information on out-ofState sales, request ANJ-10, Out-of-State Sales &
New Jersey Sales Tax.
Sales are subject to New Jersey sales tax if the out-ofState customer takes delivery or possession of the
items sold in this State at the time of purchase.
However, if it is a purchase for resale, an out-ofState purchaser who is registered with New Jersey,
may issue a New Jersey Resale Certificate (Form
ST-3) and not pay sales tax. A qualified out-of-State
vendor may also make tax exempt purchases in New
Jersey of goods and services purchased for resale.
See Resale Certificate (Form ST-3) on page 3 and
Resale Certificate for Non-New Jersey Vendors
(Form ST-3NR) on page 6.
Using Exemption Certificates
Resale Certificate (Form ST-3)
Form ST-3, Resale Certificate, is used by registered
vendors to purchase tangible personal property either
for resale in its present form or for incorporation into
other property held for sale. When purchasing goods
or services, a retailer or wholesaler issues Form ST-3
to the wholesaler or manufacturer. This exempts the
retailer or wholesaler from the sales tax on the purchase. Sales tax is collected when these items are
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Bulletin S&U-6
sold at retail. You may issue the New Jersey Resale
Certificate, Form ST-3, when you purchase the
following:
• Inventory which you intend to resell, rent or
lease
Example
Ron, of Ron’s Toy Store, purchases an inventory of
dolls to sell on a retail basis. Ron issues the doll
manufacturer a Resale Certificate instead of paying
sales tax.
Ron also needs display cases for the dolls. He may
not use a Resale Certificate when purchasing the
display cases because they are not intended for resale. He must pay sales tax on the display cases.
Example
Allen, of Appliance Rentals, Inc., purchases inventory from his supplier to rent on a retail basis. Allen
issues Form ST-3 instead of paying sales tax on
these purchases. Allen will collect sales tax from his
customers each time they rent an appliance from
him.
If you take items out of inventory for your own
personal use, you must pay New Jersey use tax at the
current sales tax rate on the purchase price of the
items you do not resell. For more information on
when you may incur a use tax liability, request our
publication ANJ-7, Use Tax in New Jersey.
Inventory for resale does not include supplies and
materials purchased by contractors. A contractor is
someone who works on the land and/or buildings of
another. Builders and landscapers are contractors
and contractors always pay sales tax on the supplies
and materials they purchase unless they are doing
work for a qualified exempt organization. Additional
information for contractors is contained in Tax
Topic Bulletin S&U-3, Contractors and New Jersey
Taxes. Landscapers may also request publication
ANJ-4, Landscapers & New Jersey Sales Tax.
4
• Raw Materials which will become component
parts of the finished product
Example
Midge, a silversmith, purchases silver to make jewelry. She may issue her supplier Form ST-3 and pay
no sales tax. The silver becomes part of the jewelry
she is producing for resale.
When Midge purchases tools for her business, she
may not use a Resale Certificate since the tools do
not become a component part of her finished product. She must pay sales tax on the tools.
• Services for resale
Example
Tom’s Gas Station is unable to complete all the
repairs to a customer’s car. Tom sends the car to a
transmission specialist (Ace Transmission Repairs)
who completes the work and returns the car to
Tom’s Gas Station. Tom may issue a Resale Certificate to the transmission specialist and pay no sales
tax when he pays for the parts and services. When
Tom bills his customer, he must charge sales tax on
the total bill (parts and labor).
If Tom has the garage’s hydraulic lifts repaired, he
may not issue a Resale Certificate to the repairman.
This repair is not a service which will be resold.
Tom must pay sales tax on the price of the repair.
See page 5 for an example of how Tom will complete Form ST-3 for the repair services he purchases
from Ace Transmission Repairs.
Rev. 12/98
Sales Tax Exemption Certificates
ST-3 (9-97, R-9)
State of New Jersey
DIVISION OF TAXATION
The seller must collect the tax on a
sale of taxable property or services
unless the purchaser gives him a
properly completed New Jersey
exemption certificate.
SALES TAX
PURCHASER'S NEW JERSEY
CERTIFICATE OF AUTHORITY NUMBER
FORM ST-3
RESALE CERTIFICATE
222-678-901/000
To be completed by purchaser and given to and retained by seller. See instructions on back.
Seller should read and comply with the instructions given on both sides of an exemption certificate.
TO
Ace Transmission Repairs
Date
3/21/98
(Name of Seller)
163 Holland Ave.
Budd Lake
Address
City
NJ
07828
State
Zip
The undersigned certifies that:
(1)
He holds a valid Certificate of Authority (number shown above) to collect State of New Jersey Sales and Use Tax.
(2)
He is principally engaged in the sale of (indicate nature of merchandise or service sold):
Motor fuels, supplies and auto repairs
(3)
The merchandise or services being herein purchased are described as follows:
Transmission repairs
(4)
(5)
The merchandise described in (3) above is being purchased: (check one or more of the blocks which apply)
(a)
! For resale in its present form.
(b)
! For resale as converted into or as a component part of a product produced by the undersigned.
(c)
! For use in the performance of a taxable service on personal property, where the property which is the
subject of this Certificate becomes part of the property being serviced or is later transferred to the
purchaser of the service in conjunction with the performance of the service.
The services described in (3) above are being purchased: (check the block which applies)
(a)
⌧ By a vendor who will either collect the tax or will resell the services.
(b)
! To be performed on personal property held for sale.
I, the undersigned purchaser, have read and complied with the instructions and rules promulgated pursuant to the New
Jersey Sales and Use Tax Act with respect to the use of the Resale Certificate, and it is my belief that the seller
named herein is not required to collect the sales or use tax on the transaction or transactions covered by this
Certificate. The undersigned purchaser hereby swears (under the penalties for perjury and false swearing) that all of
the information shown in this Certificate is true.
Tom’s Gas Station, Inc.
NAME OF PURCHASER
(as registered with the New Jersey Division of Taxation)
16 Beverly Dr., Budd Lake, NJ 07828
(Address of Purchaser)
By
Thomas Abbott
(Signature of owner, partner, officer of corporation, etc.)
Rev. 12/98
President
(Title)
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Bulletin S&U-6
Resale Certificate for Non-New Jersey
Vendors (Form ST-3NR)
Form ST-3NR is used by qualified out-of-State
vendors to make tax exempt purchases in New
Jersey of goods or services purchased for resale.
“Qualified out-of-State vendors” are vendors that
(1) are not registered with New Jersey (2) are not
required to be registered with New Jersey and (3) are
registered with another state.
When the qualified out-of-State vendor carries the
goods away with him from the point of sale, or sends
his own vehicle or messenger to pick them up in
New Jersey, the only acceptable resale certificate for
a qualified out-of-State vendor to use is the Resale
Certificate for Non-New Jersey Vendors (Form
ST-3NR). The ST-3NR requires the person picking
up the merchandise to provide acceptable
identification (i.e., driver’s license of any state in the
United States, major credit card including photograph, or any identification card which includes a
number and a photograph and the bearer’s address).
Qualified out-of-State vendors may also use Form
ST-3NR for drop shipment sales in New Jersey. See
Issuing and Accepting Exemption Certificates on
page 2.
Exempt Use Certificate
(Form ST-4)
The Exempt Use Certificate, Form ST-4, makes it
possible for businesses to purchase production
machinery, packaging supplies and other items
without paying sales tax if the way they intend to
use these items has been specifically exempted by
New Jersey law. The exemption does not apply to
services performed on the property, except as otherwise noted. Qualified purchases include:
• Advertising for Use Out-of-State: Advertising
or promotional materials which are prepared
within or outside of New Jersey by a New Jersey
direct-mail advertising or promotional firm for
distribution out-of-State. The exemption applies
6
to charges for printing or production of advertising and promotional materials whether prepared
in New Jersey, or shipped into this State after
preparation and stored for subsequent shipment to
out-of-State customers. The exemption also applies to direct-mail processing services, including
but not limited to preparing and maintaining
mailing lists, addressing, separating, folding, inserting, sorting and packaging advertising or
promotional materials.
• Certain Aircraft: The purchase of aircraft,
equipment to be installed on the aircraft and repair or replacement parts, as well as labor, used
by an air carrier as defined by the Civil Aeronautics Board or the Code of Federal Regulations and
engaging in interstate, foreign or intrastate air
commerce.
• Certain Broadcasting Equipment: Machinery,
apparatus or equipment used directly and primarily in the production or transmission of radio or
television broadcasts by commercial broadcasters
operating under a broadcasting license issued by
the Federal Communications Commission. The
exemption also applies to parts with a useful life
of one year or more. Equipment used in the construction or operation of towers does not qualify
for the exemption.
• Certain Buses: Bus companies whose rates are
regulated by the Interstate Commerce Commission or the Department of Transportation may
purchase buses for public passenger transportation with Form ST-4. This exemption also applies
to buses purchased by common or contract carriers who transport children to and from school.
Repair parts, replacement parts and labor charges
for qualified buses are also entitled to exemption.
• Certain Chemicals and Catalysts: The purchase
of materials used to induce chemical or refining
processes in which the materials are an essential
part of the process but do not become part of the
finished product.
Rev. 12/98
Sales Tax Exemption Certificates
• Commercial Fishing Boats: The purchase of
certain boats, including commercial party boats
(headboats) engaged in sport fishing and subject
to annual inspection by the U.S. Coast Guard, and
vessels primarily engaged in commercial fishing
or shellfishing. Also exempt are charges for repairs, alterations, reoutfitting of boats, fuel, maintenance and charges for supplies (other than articles purchased for the original equipping of a
new ship). Equipment necessary for harvesting
fish and shellfish may also be purchased with
Form ST-4.
• Commercial Motor Vehicles: The purchase,
rental or lease of commercial trucks, tractors,
trailers and vehicles used in combination with
such, which are registered as provided by New
Jersey law and have a gross vehicle weight rating
of more than 26,000 pounds or are operated exclusively for the carriage of interstate freight pursuant to Federal law are exempt from tax. Repair
parts and replacement parts are also exempt. An
exemption exists for trucks, trailers and truck
trailer combinations that are used directly and exclusively in the production for sale of tangible
personal property on farms when the vehicles
have a gross vehicle weight rating in excess of
18,000 pounds and are registered with the New
Jersey Division of Motor Vehicles for farm use. A
New Jersey Exempt Use Certificate, Form ST-4,
should be issued to the vendor at the time of
purchase. The purchaser is not required to be
registered with the State to issue Form ST-4 for
the purchase of commercial motor vehicles.
Example
Fred is a commercial trucker. He operates a vehicle
which is registered in Pennsylvania and has a gross
vehicle weight rating in excess of 26,000 pounds.
When Fred has repairs made in New Jersey, he may
give his mechanic an Exempt Use Certificate instead
of paying sales tax on the parts. Sales tax must be
paid on the charges for labor. As a qualified
nonregistered user, Fred will enter his social security
number on Form ST-4. When Fred buys motor
Rev. 12/98
oil for his truck, he may not issue an Exempt Use
Certificate. Motor oil is a supply, and sales tax must
be paid at the time of purchase.
• Commercial Printing: Machinery and equipment
used by businesses engaged in commercial
printing, publishing of periodicals, books, business forms, greeting cards, or miscellaneous publishing, typesetting, photoengraving, electrotyping, stereotyping and lithographic platemaking,
including supplies.
• Communications: Telephones, telephone lines,
cables, central office equipment or station
apparatus, or other machinery or equipment, including comparable telegraph equipment sold to a
service provider subject to the jurisdiction of the
Board of Public Utilities or the Federal Communications Commission, for use directly and primarily in receiving at destination or initiating,
transmitting and switching telephone, telegraph,
or interactive telecommunications service for sale
to the general public.
• Newspaper Advertising: Advertising materials
to be published in a newspaper, such as display or
classified ads.
• Newspaper Production Machinery: Machinery
and equipment used directly and primarily in the
production of newspapers, including supplies.
This machinery and equipment must be located in
the production department of a newspaper plant.
• Packaging Materials: Including such items as
wrapping paper, bags, cartons, rope, twine, labels,
non-returnable containers and all other packaging
supplies when the use of the supplies is incidental
to the delivery of merchandise. Storage containers
are not considered to be packaging materials.
Example
Henry Johnson owns a company (Crest Manufacturing, Inc.) that manufactures television sets. In order
to deliver the sets to wholesalers, he must package
them in cardboard boxes and seal the boxes with
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Bulletin S&U-6
tape. When Henry purchases the boxes and rolls of
tape, he may issue his supplier an Exempt Use Certificate. However, he may not purchase the tape dispensers with Form ST-4 as these items are not part
of the packaging used to deliver the television sets.
See page 9 for an example of how Henry will complete Form ST-4 when purchasing the packaging
materials necessary to deliver his television sets.
• Production Machinery: Machinery and equip-
ment used directly and primarily in the production
of merchandise by manufacturing, assembling,
processing and refining. The exemption also
applies to parts with a useful life of one year or
more. The exemption does not apply to tools,
which are simple, hand held, and manually operated instruments.
Example
Jim purchases a turret lathe for use in his machine
business. He may issue his supplier an Exempt Use
Certificate instead of paying sales tax because the
lathe will be used directly in the production of merchandise for sale. However, Jim may not use Form
ST-4 to purchase a forklift used exclusively to
transport his final product from the warehouse to the
loading dock.
• Recycling Equipment: Equipment which is used
exclusively to sort and prepare solid waste for recycling or in the recycling of solid waste. Equipment used in the process after the first marketable
product is produced or equipment used to reduce
iron or steel waste to a molten state does not
qualify.
8
• Research and Development: Materials pur-
chased for use or consumption directly and exclusively in research and development in the experimental or laboratory sense.
• Solar Energy Devices: Devices or systems
specifically approved by the Board of Public
Utilities, Division of Energy, Planning and Conservation and designed to provide heating or
cooling or other energy by converting solar energy to some other usable energy source. The
purchaser is not required to be registered with
New Jersey to issue Form ST-4 to purchase solar
energy devices.
Example
Mary buys a solar energy collector to heat and cool
her home. She may issue the supplier an Exempt Use
Certificate instead of paying sales tax on the
collector. However, she may not use an Exempt Use
Certificate to purchase insulation used to reduce heat
loss through her walls, roof, slab or foundation.
Since insulation is not directly used in the gathering,
storing or conversion of solar energy, sales tax must
be paid when it is purchased.
NOTE: Form ST-4 may also be used by the Federal
government, the United Nations, the State
of New Jersey and any of their agencies
when making purchases of $150 or less and
no purchase order or contract is issued.
Rev. 12/98
Sales Tax Exemption Certificates
ST-4 (9-97, R-10)
State of New Jersey
DIVISION OF TAXATION
ELIGIBLE NONREGISTERED
PURCHASER: SEE INSTRUCTIONS**
PURCHASER'S NEW JERSEY
CERTIFICATE OF AUTHORITY NUMBER
SALES TAX
FORM ST-4
222-092-244/000
EXEMPT USE CERTIFICATE
To be completed by purchaser and given to and retained by seller.
Please read and comply with instructions on both sides of this Certificate.
West End Packaging
TO
1/19/98
Date
(Name of Seller)
1166 Homer St.
Hackettstown
Address
NJ
City
07840
State
Zip
The undersigned purchaser certifies that there is no requirement to pay the New Jersey Sales and/or Use Tax
on the purchase or purchases covered by this Certificate because the tangible personal property or services
purchased will be used for an exempt purpose under the Sales & Use Tax Act.
The tangible personal property or services will be used for the following exempt purpose:
Delivering television sets.
The exemption on the sale of the tangible personal property or services to be used for the above described
exempt purpose is provided in subsection N.J.S.A. 54:32B-
8.15
(See reverse side for listing for principal
exempt uses of tangible personal property or services and fill in the block with proper subsection citation).
I, the undersigned purchaser, have read and complied with the instructions and rules promulgated pursuant to
the New Jersey Sales and Use Tax Act with respect to the use of the Exempt Use Certificate and it is my belief
that the seller named herein is not required to collect the sales or use tax on the transaction or transactions covered
by this Certificate. The undersigned purchaser hereby swears under the penalties for perjury and false swearing that
all of the information shown in this Certificate is true.
Crest Manufacturing, Inc.
NAME OF PURCHASER (as registered with the New Jersey Division of Taxation)
26 Eleventh Ave.
Hackettstown
NJ
07840
(Address of Purchaser)
By
Henry Johnson
President
(Signature of Owner, Partner, Officer of Corporation, etc. or qualified officer of Agency)
MAY BE REPRODUCED
(Front and Back Required)
Rev. 12/98
9
Bulletin S&U-6
Exempt Organization Certificate
(Form ST-5)
An Exempt Organization Certificate, Form ST-5, is
used by a qualified registered non-profit organization to purchase goods and services for its exclusive
use without paying sales tax. When an organization
has been approved as tax exempt under Section
501(c)(3) of the Internal Revenue Code, the organization may complete an Application for Exempt
Organization Permit, Form REG-1E. After the
application is approved by the New Jersey Division
of Taxation, one original Exempt Organization Certificate, Form ST-5, is issued. When the organization
makes purchases, a photocopy of Form ST-5 is
given to the supplier and the organization does not
pay sales tax. For more information on Exempt
Organization Certificates, request brochure M-5014,
Exempt Organization Certificate Form ST-5.
Direct Payment Certificate
(Form ST-6A)
A Direct Payment Certificate, Form ST-6A, may be
issued at the time of purchase by the holder of a
valid Direct Payment Permit, Form ST-6, in those
cases where the taxable status of the purchase is not
known at the time of purchase. To obtain a Direct
Payment Permit, an Application for Direct Payment
Permit, Form ST-6B, must be completed and mailed
to:
NEW JERSEY DIVISION OF TAXATION
PO BOX 264
TRENTON NJ 08646-0264
An application may only be filed by registered businesses that:
• Acquire tangible personal property or services
under circumstances which make it impossible at
the time of purchase to determine the taxable
status of the property or services, or
10
• Derive 75% or more of their gross receipts from
erecting structures for others or building on or
otherwise improving, altering or repairing real
property of others.
NOTE: The holder of a Direct Payment Permit may
not use Form ST-6A to purchase goods that
are clearly taxable at the time of purchase,
such as office equipment and supplies, repair services, etc.
Farmer’s Exemption Certificate (Form
ST-7)
The Farmer’s Exemption Certificate, Form ST-7, is
used by farmers, nursery owners and greenhouse
owners to purchase items used directly and primarily
in producing agricultural or horticultural products for
sale. However, no exemption is provided for the purchase of taxable services. Likewise, farmers cannot
purchase materials tax free that will be used to build
or repair structures. Motor vehicles for highway use
are also taxable to the farmer. You do not need to be
registered with New Jersey to issue Form ST-7.
Certificate of Capital Improvement
(Form ST-8)
A Certificate of Capital Improvement, Form ST-8,
is issued by property owners to contractors when
work is done to real property which results in a
capital improvement. A capital improvement occurs
when real property (land or buildings) is improved
in a way that its value or useful life is increased. A
property owner issues Form ST-8 to the contractor
and does not pay sales tax on the labor costs. Sales
tax is paid on the materials at the time of purchase
by the contractor or by any other individual making
the purchase. A property owner does not need to
register with New Jersey to issue Form ST-8. For
more information on capital improvements, request
Tax Topic Bulletin S&U-2, Sales Tax and Home
Improvements.
Rev. 12/98
Sales Tax Exemption Certificates
Motor Vehicle Dealer Sales and Use
Tax Exemption Report (Form ST-10)
Form ST-10 is used by registered motor vehicle
dealers to report sales tax exemptions to the Division
for nonresidents who have purchased and taken
delivery of motor vehicles in this State.
NOTE: If a person has homes in both New
Jersey and another state (owns a house
in New Jersey, but spends the winters in
Florida), he is not entitled to the ST-10
exemption because he is not a
“nonresident.”
Aircraft Dealer Sales and Use Tax
Exemption Report (Form ST-10A)
Form ST-10A is used by registered aircraft dealers
to report exempt sales of airplanes. When a
nonresident comes into New Jersey and purchases
an airplane, no sales tax is due provided the purchaser will base the airplane in another state. If the
nonresident purchaser bases the airplane in New
Jersey within 12 months of the date of sale, the
exemption is voided and sales tax plus penalty and
interest charges are due on the purchase price of the
aircraft.
Vessel Dealer Sales and Use Tax
Exemption Report (Form ST-10V)
Form ST-10V is used by registered vessel dealers to
report exempt sales of boats. An exempt sale is one
made to a New Jersey resident who purchases the
boat in New Jersey for use outside New Jersey and,
as part of the sales contract, the dealer transports the
boat out of State or the dealer arranges to have the
boat transported out of State. Also exempt is a sale
made to a nonresident who purchases the boat in
New Jersey with the intention of basing it in his or
her state of residence. This exemption applies
whether the nonresident purchaser takes possession
of the boat in New Jersey or contracts with the
dealer to have it delivered out of State. If the
Rev. 12/98
nonresident purchaser bases the boat in New Jersey
within 12 months of the date of sale, the exemption
is voided and sales tax plus penalty and interest
charges are due on the purchase price of the boat.
Contractor’s Exempt Purchase
Certificate (Form ST-13)
Form ST-13 is used by registered contractors performing services for exempt organizations or for
Federal, State or municipal agencies. When a contractor purchases materials to do work for an exempt
organization (which holds an Exempt Organization
Certificate, Form ST-5, issued by New Jersey), he
provides Form ST-13 to his supplier and does not
pay sales tax. To qualify for the exemption, the
materials to be purchased must be entirely used or
consumed on the job contracted for by the exempt
organization. Form ST-13 must include the exempt
organization number shown on Form ST-5. If the
work is done for a Federal, State or municipal
agency, the contractor must record the agency’s
purchase order number on Form ST-13.
Form ST-13 may not be used to rent machinery or
equipment or to purchase tools or materials such as
hammers and tarpaulins (rain covers) which may be
used on other jobs. For more information on Contractor’s Exempt Purchase Certificates, request Tax
Topic Bulletin S&U-3, Contractors and New Jersey
Taxes.
Exemption Certificate for Student
Textbooks (Form ST-16)
The sale of textbooks for use by students in a school,
college, university or other educational institution,
approved as such by the Department of Education, is
exempt from sales tax. When the educational
institution declares that the books are required
reading for school purposes, the purchaser may issue
the vendor Form ST-16 instead of paying sales tax.
The purchaser is not required to be registered with
New Jersey to issue Form ST-16.
11
Bulletin S&U-6
Taxpayers’ Bill of Rights
The New Jersey Taxpayers’ Bill of Rights ensures that taxpayers are accorded
fair and equitable treatment and receive the information and assistance they need
to understand and meet their State tax responsibilities. To find out more, contact
the Division of Taxation.
For More Information
For more information on New Jersey exemption certificates, contact the Division’s
Tax Hotline at 609-292-6400, or write to:
NEW JERSEY DIVISION OF TAXATION
TECHNICAL SERVICES TSB/OCE
PO BOX 281
TRENTON NJ 08646-0281
Many State tax forms and publications are now available, both by fax and through
the World Wide Web. Call NJ TaxFax at 609-826-4500 from your fax machine’s
phone, or access the Division’s home page via your computer’s modem at:
http://www.state.nj.us/treasury/taxation/
12
Rev. 12/98
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