New Jersey Administrative Code
Title 18 - TREASURY - TAXATION
Chapter 18A - PETROLEUM GROSS RECEIPTS TAX
Subchapter 3 - DIRECT PAYMENT TO PERMIT HOLDERS; CERTAIN EXEMPT SALES
Section 18:18A-3.1 - Direct payment authority

A direct payment permit holder may elect not to avail itself of its direct pay privilege. However, if it elects not to pay such tax directly to the Director such election is binding on all its transactions. It may not choose to be a direct payer for certain vendors. A vendor shall retain a copy of its direct payment permit on file for the inspection of the Director. A direct payment permit, properly executed by the purchaser, once issued, shall remain valid unless voided by the Director. A company, which receives a copy of a direct payment permit from the purchaser shall maintain records in computerized format, or such other format as the Director shall authorize, identifying all sales to the purchaser providing the permit and attributable to the permit. Such records must include date of sale, price, location of the transfer of the product, quantity of product, and type of product sold. Such supporting documentation must be made available to the Director upon request. A properly documented sale to the holder of a valid direct payment permit is not a first sale of petroleum products within this State. When the purchaser who holds a direct payment permit in turn makes a sale of petroleum products delivered to a location in New Jersey and sells to a purchaser which is not the holder of a direct payment permit, the consideration from such sale results in gross receipts subject to tax, unless the sale otherwise qualifies for exemption, exclusion, or deduction (as a sale for exportation, for example). Such vendor must report and remit the tax to the Director in accordance with this chapter.