N.J. Admin. Code § 18:24-28.2

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

Section 18:24-28.2 - Purchase of race horses

(a) The purchase of a race horse (tangible personal property) delivered to a person within New Jersey is subject to sales tax.

(b) The amount of the sales tax due is computed by multiplying the purchase price of the race horse by seven percent.

(c) The residency of the purchaser is not considered for purposes of imposing the tax where delivery is made to the purchaser in this State.

Example 1: A person purchases a race horse at an auction sale in Colts Neck. The purchase price of the horse is $ 15,000. The purchaser or his agent takes delivery of the horse at the sale in Colts Neck. The sales tax due on the transaction is $ 1,050.

Example 2: The facts are the same as in Example 1, except the horse is shipped by the auctioneer by a common carrier to the purchaser's farm in Kentucky. There is no New Jersey sales or use tax due on the transaction. However, if the horse is returned to New Jersey, it may be subject to a compensating use tax.

N.J. Admin. Code § 18:24-28.2

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