N.J. Admin. Code § 18:40-1.7

Current through Register Vol. 56, No. 24, December 18, 2024
Section 18:40-1.7 - Transportation of commercial freight; organized commuter vanpools
(a) Commercial freight rentals are not subject to the Domestic Security fee.

Example 1: Rental company A rents a motor vehicle to company B for the transportation by company B of tangible personal property sold by company B. Company A does not pay any rental fee because the rental is for the transportation of commercial freight by its vendor.

Example 2: Rental company A rents a motor vehicle to company B for the transportation by company B of tangible personal property owned by others. Company B is in the business of transporting such property. Company A does not pay any rental fee because the rental is for the transportation of commercial freight as a carrier for hire.

Example 3: Rental company A rents a motor vehicle to a non-business entity for the transportation of tangible personal property. Company A pays a rental fee because the rental is not for the transportation of commercial freight.

Example 4: Rental company A rents a motor vehicle to a business entity to be used to carry tangible personal property to be sold directly out of the vehicle. Company A pays a rental fee because the rental is not for the transportation of commercial freight but for the purpose of using the vehicle as a platform for the sale of tangible personal property.

Example 5: A company rents a truck from a truck rental company to back-haul, that is, move a third party's commercial goods on the return trip. The renter would be considered taking freight transported for others in the carrier's regular course of business. In that situation, if the rental was exclusively for back-hauling, no Domestic Security fee would be due.

(b) Vanpool rentals are not subject to the Domestic Security fee.
1. A vanpool rental is not a rental of a motor vehicle for the purposes of the Domestic Security Fee law if:
i. It is part of a voluntary commuter ride-sharing arrangement;
ii. It involves the use of a van, for a term of any duration, with a seating capacity of between seven and 15 adults, including the driver;
iii. It involves serving a group of members, one of whom is the driver, that are definite at any point in time;
iv. It is solely for the purpose of single daily round trips for transportation of members of that group between:
(1) Places of employment of members of the group (or other group-designated drop-off or pick-up locations); and
(2) The group-members' residences (or other group-designated drop-off or pick-up locations);
v. It does not involve compensating the driver or drivers of the van beyond reimbursement for his or her share of the fee for the vanpool arrangement.

N.J. Admin. Code § 18:40-1.7