Notice to Motor Vehicle Rental Company Businesses
- New legislation (P.L. 2002, c. 34, § 54) adopted June 27, 2002, provides for the imposition on motor vehicle rental companies of a $2.00 per day fee for each day or part thereof that a motor vehicle is rented under rental agreements of not more than 28 days. The fee must be separately stated on the agreement and applies with respect to certain motor vehicle rental agreements in New Jersey entered into on or after August 1, 2002. The fee is separate from and in addition to any sales tax imposed on the cost of the rental transaction and is not to be included in the receipts subject to sales tax liability. The fee is to be paid to the Division of Taxation for deposit in the General Fund of the New Jersey Domestic Security Account.
- Guidelines and procedures for the implementation of the above legislation are in the process of being established. Forms and instructions will be available for rental companies in time for filing their first return. The fee will be paid on a quarterly basis due the last day of the month next following the close of the calendar quarter. Accordingly, the remittance for the third quarter 2002 will be due October 31, 2002.
We will post more information as it becomes available. All inquiries concerning the fee should be directed by e-mail