New Jersey Administrative Code
Title 18 - TREASURY - TAXATION
Chapter 24 - SALES AND USE TAX ACT
Subchapter 7 - MOTOR VEHICLES
Section 18:24-7.4 - Computation of tax on purchase price; trade-in

Universal Citation: NJ Admin Code 18:24-7.4

Current through Register Vol. 56, No. 18, September 16, 2024

(a) Where any person engaged in the business of selling motor vehicles at retail completes a sale of a motor vehicle, he or she shall collect the sales or use tax, as may be the case.

(b) The tax shall be computed upon the full amount of the purchase price of a motor vehicle less any deduction for the trade-in of property of a like kind, if any.

(c) A deduction from the purchase price, equal to the amount of a trade-in actually allowed on the purchase, will be permitted, provided that:

1. The purchase and trade-in occur at the same time. A separate or independent sale of a motor vehicle is not considered a trade-in even if the proceeds of the sale are immediately applied by the seller to a purchase of a motor vehicle from the buyer;

2. The trade-in consists of property of the same kind as that purchased and that is accepted as partial payment. "Property of the same kind" means any other motor vehicle;

3. The trade-in is acquired by a dealer of motor vehicles who is registered as such with the Motor Vehicle Commission and the New Jersey Division of Taxation; and

4. The dealer obtains the certificate of title of the traded in vehicle and retains a copy of it as part of the record of the sale transaction.

(d) Dealers are required to separately state New Jersey sales tax on any sales slip, invoice, receipt, or other statement of the price that is provided to the customer in connection with the sale.

Disclaimer: These regulations may not be the most recent version. New Jersey may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.