New Jersey Administrative Code
Title 18 - TREASURY - TAXATION
Chapter 25 - LUXURY TAX
Subchapter 1 - GENERAL PROVISIONS
Section 18:25-1.5 - Tax rates
Current through Register Vol. 56, No. 6, March 18, 2024
(a) Luxury tax is imposed at a rate of nine percent except for sales of alcoholic beverages which are taxed at a rate of three percent.
(b) From July 15, 2006 through December 31, 2016, the combined rate for sales subject to both the Atlantic City luxury tax and New Jersey sales and use tax is 13 percent (luxury tax at nine percent and sales and use tax at four percent). From January 1, 2017 through December 31, 2017, the combined rate for sales subject to both the Atlantic City luxury tax and New Jersey sales and use tax is 12.875 percent (luxury tax at nine percent and sales and use tax at 3.875 percent). Beginning January 1, 2018, the combined rate for sales subject to both the Atlantic City luxury tax and New Jersey sales and use tax is 12.625 percent (luxury tax at nine percent and sales and use tax at 3.625 percent).
(c) Sales subject only to New Jersey sales and use tax are taxable at the applicable rate as set forth in the Sales and Use Tax Act.
(d) From July 15, 2006 through December 31, 2016, sales of alcoholic beverages by the drink in Atlantic City are taxable at the combined rate of 10 percent (luxury tax at three percent and sales and use tax at seven percent). From January 1, 2017 through December 31, 2017, the combined rate is 9.875 percent (luxury tax at three percent and sales and use tax at 6.875 percent). Beginning January 1, 2018, the combined rate is 9.625 percent (luxury tax at three percent and sales and use tax at 6.625 percent). Sales of package goods are subject only to New Jersey sales and use tax at the applicable rate as set forth in the Sales and Use Tax Act.
