New Jersey Administrative Code
Title 18 - TREASURY - TAXATION
Chapter 40 - DOMESTIC SECURITY FEE
Subchapter 1 - PROVISIONS
Section 18:40-1.1 - Scope

This subchapter shall apply to the administration and implementation of P.L. 2002, c. 34, §54, signed into law July 1, 2002, as amended by P.L. 2006, c. 42, §1, effective July 8, 2006, which provides for a new statutory assessment of $ 5.00 per day to be paid to the Division of Taxation by businesses, which engage in motor vehicle rentals for each day or part thereof, not exceeding 28 days in length, that a motor vehicle is rented under a rental agreement. The initial $ 2.00 per day fee was applied to rental agreements in New Jersey entered into on or after August 1, 2002, and before July 8, 2006. The increased fee of $ 5.00 per day applies to rental agreements entered into on or after July 8, 2006. The statute authorizes the Director of the Division of Taxation to make rules, pursuant to the rulemaking authority granted pursuant to the Administrative Procedure Act, P.L. 1968, c. 410 (52:14B-1 et seq.) and P.L. 1966, c. 30 (54:32B-1 ), to implement the statute's provisions. The fee is separate from, and in addition to, any sales tax imposed on the cost of the rental transaction and is not to be included in the receipts subject to sales tax liability imposed pursuant to the Sales and Use Tax Act, P.L. 1966, c. 30 (54:32B-1 et seq.). The fee is to be designated as the "Domestic Security Fee" in the rental agreement and paid to the Division of Taxation for deposit in the General Fund of the New Jersey Domestic Security Account. A rental company may require reimbursement of the domestic security fee from a renter or a third party. However, the fee is due from the rental company whether or not the renter or a third party pays for the rental or reimburses the rental company for the fee.