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.
N.J. Admin. Code § 18:40-1.7