Current through Register Vol. 56, No. 18, September 16, 2024
(a) Any sale of a motor
vehicle to any of the following shall not be subject to the sales and use tax:
1. The State of New Jersey, or any of its
agencies, instrumentalities, public authorities, public corporations, or political
subdivisions;
2. The United States of
America, and any of its agencies and instrumentalities, insofar as it is immune from
taxation;
3. The United Nations or any
international organization of which the United States of America is a
member;
4. Those organizations described
in 54:32B-9(b)(1) that
have obtained and hold an Exempt Organization Certificate as provided in
54:32B-9; provided, however, that such
vehicle is used directly in pursuit of the purposes of the exempt
organization.
(b) Any sale of
a motor vehicle to a nonresident of this State is not subject to tax, provided such
nonresident, at the time of delivery, has no permanent place of abode in this State,
is not engaged in carrying on in this State any employment, trade, business, or
profession in which the motor vehicle will be used in this State, and furnishes to
the seller, prior to delivery, proof supporting his or her claim from exemption. For
the purposes of this section:
1. Any person who
maintains a place of abode in New Jersey is a resident individual.
2. Any corporation incorporated under the laws of
New Jersey, and any corporation, association, partnership, or other entity doing
business in New Jersey, or maintaining a place of business in the State, or
operating a hotel, motel, place of amusement, or social or athletic club in the
State is a resident.
3. Any person,
corporation, or other entity engaged in carrying on in New Jersey any employment,
trade, business, or profession is deemed a resident of New Jersey with respect to
the use of a motor vehicle in such employment, trade, business, or profession in the
State.
4. (Reserved)
5. Any person serving in the Armed Forces of the
United States whose home of record is a state other than the State of New Jersey is
a resident of this State if he or she is living in this State, regardless of whether
his or her place of abode is located on or off a military reservation, provided that
it is within the territorial limits of New Jersey.
6. Any person serving in the Armed Forces of the
United States whose home of record is the State of New Jersey is a resident of this
State whether his or her place of abode is located on or off a military reservation
situated in New Jersey or another state of the United States or a foreign
nation.
(c) Any sale of a
motor vehicle to be used exclusively for lease or rental is purchased for resale and
is not subject to tax at the time of purchase.
(d) The renting, leasing, licensing, or
interchanging of trucks, tractors, trailers, or semitrailers by persons not engaged
in a regular trade or business offering such renting, leasing, licensing, or
interchanging to the public is not subject to tax, so long as such renting, leasing,
licensing, or interchanging is carried on with persons engaged in a regular trade or
business involving carriage of freight by such vehicles.
1. As used in this subsection, "carriage of
freight" means property transported by a common or public carrier, such as regular
trucking companies, and does not include the type of business utilizing rented or
leased vehicles to transport its own goods. For example: A seller of welding
supplies leases trucks from a person not engaged in the regular trade or business of
leasing such vehicles to the public. The trucks are used to transport the seller's
own goods to its customers. The exemption from tax does not apply since the seller
is not engaged in the carriage of freight, unless the trucks qualify for exemption
under 54:32B-8.4 3. (See
18:24-7.18)
