INDIVIDUAL NEW JERSEY INCOME TAXES
SALES AND USE TAX
Sales and Use Tax applies to receipts from retail sale, rental, or use of
tangible personal property or digital property; retail sale of producing, fabricating,
processing, installing, maintaining, repairing, and servicing tangible personal
property or digital property; maintaining, servicing, or repairing real property;
certain direct-mail services; tattooing, tanning, and massage services;
investigation and security services; information services; limousine services; sales
of restaurant meals and prepared food; rental of hotel and motel rooms; certain
admission charges; certain membership fees; parking charges; storage services;
sales of magazines and periodicals; delivery charges; and telecommunications
services, except as otherwise provided in the Sale and Use Tax Act.
A compensating use tax is also imposed when taxable goods and services are purchased and New Jersey sales tax is either not collected or is collected at a rate less than New Jersey’s sales tax rate. The use tax is due when such goods, or the goods on which taxable services are performed, come into New Jersey. If sales tax was paid to another state, the use tax is only due if the tax was paid at a rate less than New Jersey’s rate.
Individual taxpayers may report and remit use tax by either completing and filing the Use Tax Return, Form ST-18 within 20 days after property is brough into New Jersey or by reporting any use tax due on Line 44 of their resident income tax return, Form NJ-1040.