The combined rate for sales subject to both Sales and Use Tax and the Atlantic City Luxury Tax is reduced from 13% to 12.875% (9% Atlantic City Luxury Tax and 3.875% Sales and Use Tax). The following rules apply to all sales made in Atlantic City on and after January 1, 2017, but prior to January 1, 2018:
Sales that are subject to both taxes – other than alcoholic beverages sold by the drink, including bottles of beer, wine, etc. opened and consumed on the premises – continue to be subject to the Atlantic City Luxury Tax at 9%. However, these sales are now subject to Sales and Use Tax at the rate of 3.875%.
Alcoholic beverages that are sold by the drink in Atlantic City are taxable at the combined rate of 9.875% (3% Atlantic City Luxury Tax and 6.875% Sales and Use Tax).
Sales of packaged goods are subject to Sales and Use Tax at the rate of 6.875%.