New Jersey Administrative Code
Title 18 - TREASURY - TAXATION
Chapter 24 - SALES AND USE TAX ACT
Subchapter 7 - MOTOR VEHICLES
Section 18:24-7.14 - Taxability of motor vehicles withdrawn from inventory of motor vehicle dealer; computation
Current through Register Vol. 56, No. 18, September 16, 2024
(a) Vehicles actually sold to a salesperson, partner, or other official of the dealer's company are subject to sales tax on the purchase price, or, if there is a trade-in, on the purchase price less the trade-in allowance.
(b) Retail dealers of motor vehicles who withdraw such vehicles from inventory or stock prior to the sale thereof, shall be required to pay a compensating use tax on such uses unless the vehicle is assigned to and used by a full-time motor vehicle salesperson employed by the dealership.
(c) There shall be no compensating use tax imposed on the use of a motor vehicle by a retail dealer during a period when the motor vehicle is assigned to and used by a full-time motor vehicle salesperson employed by the dealership.
(d) In order to be entitled to the exemption provided in (c) above, a dealer shall file together with the quarterly return, a certification wherein the dealer certifies the type, assignment, and usage of all company-owned motor vehicles withdrawn from inventory or stock, on a form prescribed by the Director of the Division of Taxation.