N.J. Admin. Code § 18:24-4.5

Current through Register Vol. 56, No. 8, April 15, 2024

Section 18:24-4.5 - Purchase or use of components and catalysts exempt from tax

(a) The purchase or use of tangible personal property is exempt from tax when it is intended that the property be resold either:

1. In the same form as when purchased or used;

2. As a component of a product produced for sale by the purchaser; or

3. For use by the purchaser in performing taxable services, where the property so sold becomes a physical component of the property upon which the services are performed; or where the property so sold is later actually transferred to the purchaser of the service in conjunction with the performance of the taxable service.

(b) The purchase or use of materials such as chemicals and catalysts which are used to induce or cause a refining or chemical process, where such materials are an integral or essential part of the processing operation, but do not become a component of the finished product is exempt from tax.

N.J. Admin. Code § 18:24-4.5

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