N.J. Admin. Code § 18:24-7.8

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

Section 18:24-7.8 - Sales of motor vehicles specifically exempted

(a) Any sale of a motor vehicle to any of the following shall not be subject to the sales and use tax:

1. The State of New Jersey, or any of its agencies, instrumentalities, public authorities, public corporations, or political subdivisions;

2. The United States of America, and any of its agencies and instrumentalities, insofar as it is immune from taxation;

3. The United Nations or any international organization of which the United States of America is a member;

4. Those organizations described in 54:32B-9(b)(1) that have obtained and hold an Exempt Organization Certificate as provided in 54:32B-9; provided, however, that such vehicle is used directly in pursuit of the purposes of the exempt organization.

(b) Any sale of a motor vehicle to a nonresident of this State is not subject to tax, provided such nonresident, at the time of delivery, has no permanent place of abode in this State, is not engaged in carrying on in this State any employment, trade, business, or profession in which the motor vehicle will be used in this State, and furnishes to the seller, prior to delivery, proof supporting his or her claim from exemption. For the purposes of this section:

1. Any person who maintains a place of abode in New Jersey is a resident individual.

2. Any corporation incorporated under the laws of New Jersey, and any corporation, association, partnership, or other entity doing business in New Jersey, or maintaining a place of business in the State, or operating a hotel, motel, place of amusement, or social or athletic club in the State is a resident.

3. Any person, corporation, or other entity engaged in carrying on in New Jersey any employment, trade, business, or profession is deemed a resident of New Jersey with respect to the use of a motor vehicle in such employment, trade, business, or profession in the State.

4. (Reserved)

5. Any person serving in the Armed Forces of the United States whose home of record is a state other than the State of New Jersey is a resident of this State if he or she is living in this State, regardless of whether his or her place of abode is located on or off a military reservation, provided that it is within the territorial limits of New Jersey.

6. Any person serving in the Armed Forces of the United States whose home of record is the State of New Jersey is a resident of this State whether his or her place of abode is located on or off a military reservation situated in New Jersey or another state of the United States or a foreign nation.

(c) Any sale of a motor vehicle to be used exclusively for lease or rental is purchased for resale and is not subject to tax at the time of purchase.

(d) The renting, leasing, licensing, or interchanging of trucks, tractors, trailers, or semitrailers by persons not engaged in a regular trade or business offering such renting, leasing, licensing, or interchanging to the public is not subject to tax, so long as such renting, leasing, licensing, or interchanging is carried on with persons engaged in a regular trade or business involving carriage of freight by such vehicles.

1. As used in this subsection, "carriage of freight" means property transported by a common or public carrier, such as regular trucking companies, and does not include the type of business utilizing rented or leased vehicles to transport its own goods. For example: A seller of welding supplies leases trucks from a person not engaged in the regular trade or business of leasing such vehicles to the public. The trucks are used to transport the seller's own goods to its customers. The exemption from tax does not apply since the seller is not engaged in the carriage of freight, unless the trucks qualify for exemption under 54:32B-8.4 3. (See 18:24-7.18 )

N.J. Admin. Code § 18:24-7.8

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

Amended by 50 N.J.R. 907(a), effective 2/20/2018