N.J. Admin. Code § 18:24-4.6

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

Section 18:24-4.6 - Services subject to tax

(a) The following enumerated services, purchased or sold by any person engaged in manufacturing, processing, assembling, or refining, not purchased for resale, that is, not performed on property offered for sale by the purchaser, are subject to sales and use tax:

1. Producing, fabricating, processing, printing, or imprinting tangible personal property (with the exception of imprinting services performed upon machinery, apparatus, or equipment used directly and primarily in manufacturing, processing, assembling, or refining), performed for a person who directly or indirectly furnishes the tangible personal property, not purchased by him or her for resale, upon which such services are performed.

2. Installing tangible personal property, except where such installation results in an exempt capital improvement to real property. In determining whether an installation of tangible personal property results in a capital improvement to real property, the following factors should be considered:

i. Whether the improvement results in an increase in the capital value of the real property;

ii. Whether the improvement results in a significant increase in the useful life of the property; and

iii. The treatment, for accounting purposes, of such improvements for Federal Internal Revenue purposes.

3. Maintaining, servicing, or repairing real or tangible personal property, regardless of how such services are performed, and whether or not any tangible personal property is transferred in conjunction with the performance of such services.

N.J. Admin. Code § 18:24-4.6

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