N.J. Admin. Code § 18:24-32.5

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

Section 18:24-32.5 - Treatment of leases when property is relocated to or from New Jersey before expiration of the lease

(a) The general rule, for leases or rentals of tangible personal property other than motor vehicles, trailers, or aircraft, or transportation equipment is as follows:

(b) If property originally leased in New Jersey is permanently relocated to another state before the expiration of the lease, the lessee is entitled to a partial refund of the amount of sales tax paid allocable to the portion of the lease or rental that remains in effect after the property is removed from New Jersey, if the following conditions are met:

1. The state to which the property has been relocated does not provide a credit against its own sales or use tax for the tax paid on a lease that began in this State; and

2. If the state to which the property is relocated taxes leases or rentals on a lump-sum basis, it allows a corresponding partial refund when property originally leased there is subsequently relocated to New Jersey before the lease expires.

N.J. Admin. Code § 18:24-32.5

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