New Jersey Administrative Code
Title 18 - TREASURY - TAXATION
Chapter 18A - PETROLEUM GROSS RECEIPTS TAX
Subchapter 5 - FUEL OIL AND PROPANE DEALERS
Section 18:18A-5.1 - Fuel oil dealers

(a) Companies in the business of selling No. 2, No. 4, or No. 6 fuel oil or kerosene for exempt use (such as residential use, nonprofit, or governmental use) shall apply to the Director for a direct payment permit, in accordance with 18:18A-3.4 . Upon issuance of a direct payment permit from the Director, such dealers shall report and pay directly to the Director the tax applicable on their gross receipts from taxable sales of such fuel oil or kerosene. Such companies would qualify to purchase such fuel oil or kerosene in nontaxable transactions from registered sellers.

(b) Gross receipts from sales of No. 2, No. 4, or No. 6 fuel oil and kerosene for residential use are not subject to tax. If a company sells and dispenses fuel into a single tank that operates a heating system of a building containing residential and commercial units, the entire sale shall result in gross receipts subject to tax unless the purchaser furnishes a certification, under oath, that a portion of the fuels purchased shall be used for nontaxable purposes. The taxable portion of the sale shall be computed by multiplying the total number of gallons sold of the petroleum product by a fraction, the numerator of which shall be the number of square feet in the building which are devoted to office, retail, or other nonresidential use including stairwells and halls and denominator of which shall be the total number of square feet in the building.