New Jersey Administrative Code
Title 18 - TREASURY - TAXATION
Chapter 7 - CORPORATION BUSINESS TAX ACT
Subchapter 18 - ALTERNATIVE MINIMUM ASSESSMENT
Section 18:7-18.1 - Definitions

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.

"Affiliated group" means a group of corporations defined as an affiliated group by I.R.C. § 1504, or any successor Federal law, that files a consolidated Federal income tax return for the privilege period pursuant to I.R.C. §§ 1501 through 1504.

"Cost of goods sold" means the cost of goods sold calculated pursuant to the same method used by the taxpayer for the purpose of computing its Federal income tax (including, for example, and without limitation, I.R.C. § 263A) multiplied at the taxpayer's election by (1) either the allocation factor computed pursuant to N.J.S.A. 54:10A-6; or (2) the receipts fraction of the allocation factor (N.J.A.C. 18:7-10.1 regarding discretionary adjustments of the allocation factor by the Director). In a particular case, the Director may use another input or expenditure that is necessary to measure fairly and reasonably the business activity of the taxpayer.

"Key corporation" means a single member within an affiliated group designated by the group to act as a "clearinghouse" for adjustments made by or to members of the group. For privilege periods commencing after June 30, 2006, key corporations are not permitted for reporting for any other tax purposes in New Jersey.

"Member of an affiliated group" means a taxpayer that is part of an affiliated group.

"New Jersey gross profits" means New Jersey gross receipts reduced by returns and allowances attributable to New Jersey gross receipts, less the cost of goods sold. See N.J.S.A. 54:10A-5a.

"New Jersey gross receipts" means the receipts of the taxpayer for the privilege period, computed on the cash or accrual basis according to the method of accounting used in the computation of its net income for Federal tax purposes arising during the privilege period from:

1. Sales of its tangible personal property located within this State at the time of the receipt of or appropriation to the orders where shipments are made to points within this State;

2. Sales of tangible personal property located outside the State at the time of the receipt of or appropriation to the order where shipment is made to points within the State;

3. Services performed within the State;

4. Rentals from property situated, and royalties from the use of patents or copyrights, within the State; and

5. All other business receipts earned within the State.

Dividends are included in New Jersey gross receipts when the recipient's commercial domicile is in New Jersey.