N.J. Admin. Code § 18:24-22.2

Current through Register Vol. 56, No. 11, June 3, 2024

Section 18:24-22.2 - Floor covering dealer transactions

(a) "Floor covering dealer" means a person who makes retail sales of floor coverings.

(b) When an installation service is rendered in conjunction with the sale of floor coverings by a floor covering dealer, the agreement for such service is treated as a transaction separate and distinct from the sale of the floor covering. Sales of floor coverings are, therefore, subject to New Jersey sales and use tax regardless of whether the floor covering dealer also agrees to install the floor covering. The floor covering dealer must collect the sales tax from his or her customer on the sales price of the floor covering.

(c) The sales tax collection obligations of a floor covering dealer/installer, who is both a seller of tangible personal property and a contractor are as follows:

1. A floor covering dealer in New Jersey is required to be registered as a seller with the New Jersey Division of Taxation and to collect tax from customers to whom it makes retail sales of floor coverings in New Jersey.

2. A floor covering dealer who installs the floor coverings that he or she sells, or who arranges for subcontractors to install the floor coverings for him or her, is both a retail seller of floor coverings and a contractor with respect to the installation services. The dealer/contractor must collect sales tax from customers on both the sale of floor coverings and the sale of installation services.

N.J. Admin. Code § 18:24-22.2

Amended by 48 N.J.R. 824(a), effective 5/16/2016