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Sales Tax Transition from 7% to 6.875%


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NOTICE SALES AND USE TAX RATE CHANGE 6.875% SALES AND USE TAX RATE (P.L. 2016, c. 57) AMENDMENTS TO THE SALES AND USE TAX ACT, EFFECTIVE JANUARY 1, 2017

The New Jersey Sales and Use Tax will be reduced in two phases between 2017 and 2018. P.L. 2016, c. 57 decreases the Sales and Use Tax rate from 7% to 6.875% on and after January 1, 2017. The tax rate will decrease to 6.625% on and after January 1, 2018. This Notice discusses the transition of the Sales and Use Tax to the lower rates.

Changes 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 Tax Collection Schedule, which is effective January 1, 2017. Schedule ST-75 rounds the amount of taxes owed to the nearest full cent. All tax calculations should be rounded accordingly. (See, “How to Calculate the Sales Tax” at left.) The tax rate (6.875%) is not rounded when calculating taxes owed.

Taxable Transactions

The following rules apply to taxable transactions that begin before January 1, 2017, and are completed on or after January 1, 2017, but before January 1, 2018.

Sales Made Before January 1, 2017; Delivery on and After January 1, 2017:

If the tangible personal property or specified digital products are sold and delivered or services are rendered before January 1, 2017, the seller must collect tax at the rate of 7%. If the tangible personal property, specified digital products, or services are 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%.

 








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Fair Lawn Regional Office
NJ Division of Taxation
2208 Route 208
Fair Lawn, NJ 07410
Hours: 8:30am - 4:30pm
Somerville Regional Office
NJ Division of Taxation
75 Veterans Memorial Drive East
Suite 103
Somerville, NJ 08876
Hours: 8:30am - 4:30pm
Camden Regional Office
NJ Division of Taxation
2 Riverside Drive
Camden, NJ 08103
Hours: 8:30am - 4:30pm
Trenton Taxation Building
NJ Division of Taxation
50 Barrack Street, 1st Floor Lobby
Trenton, NJ 08695
Hours: 8:30am - 4:30pm
Northfield Regional Office
NJ Division of Taxation
1915-A New Road, Route 9
Northfield, NJ 08225
Hours: 8:30am - 4:30pm
Neptune Regional Office
NJ Division of Taxation
1828 West Lake Avenue
3rd Floor 
Neptune, NJ 07753
Hours: 8:30am - 4:30pm
Newark Regional Office
NJ Division of Taxation
124 Halsey Street, 2nd Floor
Newark, NJ 07102
Hours: 8:30am - 4:30pm