N.J. Admin. Code § 18:24-5.8

Current through Register Vol. 56, No. 9, May 6, 2024

Section 18:24-5.8 - Contractor services maintaining, servicing, or repairing real property

(a) Services rendered by a contractor in maintaining, servicing, or repairing real property, except as hereinafter provided, are subject to tax. When charging the tax on maintaining, servicing, and repairing real property, a contractor must charge the sales tax on only that portion of his or her bill attributable to services. The tax on materials used in performance of such services is the responsibility of the contractor. Examples of taxable maintenance or repair services include, but are not limited to:

1. Mowing lawns;

2. Applying lawn chemicals;

3. Spraying trees;

4. Weeding;

5. Repainting the interior or exterior of a building;

6. Patching a roof;

7. Cleaning up oil spills;

8. Snow plowing;

9. Power-washing a building; and

10. Removal of contained garbage (including hazardous wastes), except as provided in (b)2 below.

(b) The following maintenance, service, and repair operations are not subject to tax:

1. Services performed on a residential heating system unit serving not more than three families living independently of each other and doing their cooking on the premises. (In cases where the heating system is also used for cooling purposes, it shall be presumed, in the absence of evidence to the contrary, that the system is primarily used for heating purposes, except where the system is known to be in use for only the months during which a cooling system might be in use.); or

2. Services involving only removal of contained garbage, performed on a regular contractual basis for a term of not less than 30 days, or sewer services, performed on a regular contractual basis for a term of not less than 30 days.

(c) In all instances, sales or use taxes on materials used in maintaining, servicing, or repairing real property where such materials are provided by the contractor as part of his or her services, are the responsibility of the contractor rather than of the contractor's customer. The contractor should charge tax only on the separately stated service portion of his or her bill.

N.J. Admin. Code § 18:24-5.8

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