New Jersey Administrative Code
Title 18 - TREASURY - TAXATION
Chapter 40 - DOMESTIC SECURITY FEE
Subchapter 1 - PROVISIONS
Section 18:40-1.8 - Inter-company rentals
The company from which the motor vehicle is rented owes a Domestic Security fee for the term of that rental agreement. Any subsequent rental of the same motor vehicle by the renter to another renter imposes an obligation on the first renter to pay the rental fee for the subsequent transaction as well.
Example 1: Company B rents a motor vehicle from company A for 10 days. Company B then rents the same vehicle to a third party renter for 10 days. Regardless of whether the two time periods overlap, 10 days' of fees are owed each from company A and company B (as long as the rentals are not for commercial freight). Any subsequent rental of the same motor vehicle by the second party renter/rental company B to another renter imposes an obligation to pay the rental fee on that company B for the subsequent transaction as well as on company A for the original A/B transaction.