N.J. Admin. Code § 18:24-5.9

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

Section 18:24-5.9 - Fabricator/contractor's purchase of materials

(a) Where any person is engaged in the business of fabrication of items of tangible personal property produced for incorporation into real property as component parts thereof, as well as the business of installing such property, the person may purchase all component materials as purchases for resale.

(b) A fabricator/contractor is not required to pay tax on materials at the time of purchase. However, the fabricator/contractor does have the option to pay sales tax at the time of purchase. The fabricator/contractor should issue a fully completed Resale Certificate (Form ST-3) or other approved form when claiming a resale exemption at the time of purchase.

(c) A fabricator/contractor who claimed a resale exemption when purchasing materials that become physical components of the items fabricated must self-assess and pay use tax if the fabricator/contractor later installs the completed product on real property. A fabricator/contractor who paid sales tax when purchasing such component materials may seek a refund of the tax paid if he or she sells the completed product to a contractor, property owner, or other customer, but does not install the completed product.

N.J. Admin. Code § 18:24-5.9

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