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New Hampshire, New Jersey, New Mexico Sales And Use Tax Exemptions



Aaron Giles

New Hampshire State Sales And Use Tax

The state of New Hampshire is one of five states in the U.S. that does not charge a state sales tax.

New Jersey State Sales And Use Tax

The state of New Jersey’s sales tax rate was reduced effective January 1, 2017. The sales tax rate was reduced from 7% to 6.85% and will be reduced again as of January 1, 2018 to a 6.625% rate. New Jersey applies sales tax on the retail sale, lease or rental of most goods and some services. There are no additional local sales taxes in the state of New Jersey. More information is provided below about reduced sales tax rates and major New Jersey sales tax exemptions.

In Salem County, the sales tax rate is 3.5% and the 7% state sales tax rate does not apply. This 3.5% Salem County rate only applies to retail sales of tangible personal property made in person at a place of business located within Salem County.

Use tax is also collected on the consumption, use or storage of goods in New Jersey if sales tax was not paid on the purchase of the goods. The use tax rate is the same as the sales tax rate. Returns are to be filed on or before the 20th day of the month following the month in which the purchases were made. For example, purchases made in the month of January should be reported to the state of New Jersey on or before February 20th.

 New Jersey Sales Tax Exemptions For Manufacturers

Manufacturers enjoy New Jersey sales tax exemptions for purchases including, but not limited to: new manufacturing machinery, material handling equipment, repair parts to those pieces of machinery or equipment, and items that become component parts of the final product such as raw materials and packaging.

New Jersey Sales Tax Exemptions For Trucking

The trucking industry may purchase repair and replacement parts, including those for the engine and drive train, exempt from New Jersey sales and use tax. Tires purchases are also exempt. Motor oil, lubricants and other consumable items will not qualify as exempt repair or replacement parts. Repair labor or service charges are subject to New Jersey sales and use tax.  Agile Consulting Group’s sales tax consultants have secured New Jersey sales tax refunds for a number of common carriers.

For more information on New Jersey sales tax exemptions please visit the sites below.

State of New Jersey Department Of the Treasury

New Jersey Sales And use Tax Forms

 New Mexico State Sales And Use Tax

In lieu of a sales tax, the state of New Mexico collects a 5.125% gross receipts tax. Generally most businesses pass along this tax to the consumer, so the gross receipts tax resembles a sales tax. Local jurisdictions impose additional gross receipt taxes up to 7.125%. The range of combined gross receipts tax rates within the state of New Mexico is between 5.125% and 12.25%.

Gross receipts tax returns are to be filed on or before the 25th day of the month following the month in which the purchases were made. For example, purchases made in the month of January should be reported to the state of Nevada on or before the 25th day of February.

Taxation Revenue New Mexico

New Mexico Statues

New Mexico Tax Forms

Have sales and use tax questions? Contact Aaron Giles

 

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Aaron C. Giles is the Founder and President of Agile Consulting Group. Aaron spent five years working within the specialty niche of Sales & Use Tax at Brown & Associates before forming his own firm in 2005. He has worked hundreds of audits in states all across the U.S. during that time and has delivered savings of over $75M in the form of refunds and credits to his clients. Today, he leads a group of talented, detail-oriented colleagues who focus exclusively on Sales & Use Tax.

Some of our firms’ greatest achievements have come in successfully arguing new and unique perspectives to existing tax law in various states enabling our clients to claim exemptions on categories of purchases previously held to be taxable. Included in these victories are: communication services taxes for religious nonprofit hospitals in FL, bulk purchases of drugs in VA, specific surgical tools and instruments for healthcare providers in TX, printing plates in GA, railroad utilities in KY, and most recently software in AL.

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