N.J. Admin. Code § 18:24-31.3

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

Section 18:24-31.3 - Exemption for retail sales to a qualified business

(a) Retail sales, rentals, and leases of tangible personal property (except motor vehicles and energy) to a qualified business and sales of services (except telecommunications and utility services) to a qualified business, for the exclusive use or consumption of such business within an enterprise zone are exempt from the sales and use taxes imposed by 54:32B-1 et seq. Sales of specified digital products, as defined by 54:32B-2(zz) are not eligible for exemption.

1. Examples of tangible personal property that qualify for exemption when used or consumed exclusively within the enterprise zone include, but are not limited to:

i. Office supplies and stationery;

ii. Office or business equipment;

iii. Office and store furnishings;

iv. Trade fixtures; and

v. Cash registers.

2. Examples of services that qualify for exemption when used or consumed exclusively within the enterprise zone include, but are not limited to:

i. Installing, maintaining, or repairing tangible personal property used in business (other than a motor vehicle);

ii. Maintaining, servicing, or repairing real property used in business, including janitorial, landscaping, and security guard services; and

iii. Information services.

3. A qualified business purchasing, renting, or leasing tangible personal property (except motor vehicles and energy) or services (except telecommunications and utility services) to be used or consumed exclusively within the enterprise zone shall issue a fully completed Urban Enterprise Exempt Purchase Certificate, (Form UZ-5), to the seller, lessor, or supplier.

(b) The benefits set forth in this section are not available for qualified businesses within a UEZ-impacted business district.

(c) Notwithstanding (a) above, and in accordance with the provisions in 52:27H-87.1, a qualified business may receive exemption from sales and use tax on charges for energy and utility service purchases. A qualified business meeting certain eligibility requirements must apply for the exemption by submitting an application to the New Jersey Economic Development Authority (EDA) as set forth in N.J.A.C. 19:31-13.

N.J. Admin. Code § 18:24-31.3

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