New Jersey Sales and Use Tax Rate Reduction

April 22, 2017

The New Jersey Sales and Use Tax will be reduced in two phases between 2017 and 2018. As of January 1, 2017 the Sales and Use Tax rate has been reduced from 7% to 6.875% (P.L. 2016, c. 57). The tax rate will decrease to 6.625% on and after January 1, 2018.

What does this mean for sellers?

Sellers must collect and remit the tax at the rate of 6.875% on all taxable sales of tangible personal property, specified digital products, and enumerated services that occur on and after January 1, 2017. This rate will remain in effect until December 31, 2017. The Division of Taxation has updated ST-75, Sales and Tax Collection Schedule. Schedule ST-75 rounds the amount of taxes owed to the nearest full cent. All tax calculations should be rounded accordingly. The tax rate (6.875%) is not rounded when calculating taxes owed.

What about taxable transactions that began before January 1, 2017, but are completed after January 1, 2017 (but before January 1, 2018)?

If the tangible personal property or specified digital products were sold and delivered, or services were rendered before January 1, 2017, the seller must collect tax https://www.cialissansordonnancefr24.com/cialis-5-mg/ at the rate of 7%. If the tangible personal property, specified digital products or services were sold before January 1, 2017, but the tangible personal property or specified digital products are delivered or the services rendered on or after January 1, 2017 (but before January 1, 2018), the seller must collect tax at the rate of 6.875%.