N.J. Admin. Code § 18:24-16.6
Current through Register Vol. 56, No. 24, December 18, 2024
Section 18:24-16.6 - Tax on gross receipts(a) Sellers operating vending machines that dispense tangible personal property, other than food and drink, must report and pay to the State the tax upon the gross receipts from all sales of such items made through such machines, subject to the exemptions set forth in the Sales and Use Tax Act, such as items sold through vending machines for $ 0.25 or less (exempt under N.J.S.A. 54:32B-8.9).(b) Sellers operating vending machines that dispense food and beverages must report and pay to the State the tax upon vending machine sales as defined in (c) below from all sales of such items made through such machines subject to the exemptions set forth in N.J.A.C. 18:24-16.7(b) and (c).(c) For purposes of subsection (b) above, taxable vending machine sales means the wholesale price of food and beverage which is 70 percent of the retail vending machine selling price of such food and beverage.(d) Sellers must report total receipts from all vending machine sales and deductions of all non-taxable items including 30 percent of sales of food and drink.(e) Example: | Receipts from sales of taxable tangible personal property | $ 1,000 |
| Receipts from sales of milk | 1,000 |
| Receipts from sales of food and beverages (other than |
| milk) | 8,000 |
| Total receipts from all vending machine sales | $ 10,000 |
| Less deductions: |
| Milk | $ 1,000 |
| 30 percent of receipts from food and beverage sales |
| (30 percent x $ 8,000) | 2,400 |
| Total deductions | 3,400 |
| Receipts subject to tax | $ 6,600 |
| Tax due (at 7 percent) | $ 462 |
N.J. Admin. Code § 18:24-16.6
Amended by 48 N.J.R. 824(a), effective 5/16/2016