The sales tax rate was reduced from 6.85% to 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 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 Exemption For Manufacturers
Manufacturers enjoy 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. Contact Agile Consulting Group’s sales tax consultants for more details.
New Jersey Sales Tax Exemption 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 sales tax exemptions in New Jersey please visit the sites below.
Additional Sales Tax Exemption Information
- New Jersey Main Sales and Use Tax Page
- New Jersey Sales and Use Tax Statutes
- New Jersey Sales and Use Tax Rules
- New Jersey Sales and Use Tax Forms
New Jersey Tax Research Bulletins
Have a question about State Exemptions? Contact Aaron Giles.
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