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Division of Taxation

Atlantic City Luxury Tax Overview

Description

The Atlantic City Luxury Sales Tax applies to receipts from specified retail sales within Atlantic City, including sales of alcoholic beverages for on-premises consumption; cover, minimum, or entertainment charges; room rental in hotels, inns, rooming, or boarding houses; hiring of rolling chairs, beach chairs, and cabanas; and tickets of admission within Atlantic City.

The tax is not levied on casual sales, sales to New Jersey or its political subdivisions, sales exempt by federal law, and sales by a church or nonprofit charitable organization.

Rate

As of January 1, 2018, Atlantic City businesses collect a combined tax rate of 12.625% on the specified retail sales. (Atlantic City Luxury Tax of 9% and New Jersey Sales and Use Tax of 3.625%.) The following rules applied at the time of this notice's posting:

  • Sales – 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 New Jersey Sales and Use Tax at the reduced rate of 3.625%.
  • Alcoholic beverages that are sold by the drink in Atlantic City are taxable at the combined rate of 9.625% (3% Atlantic City Luxury Tax and 6.625% New Jersey Sales and Use Tax).
  • Sales of packaged goods are subject only to New Jersey Sales and Use Tax at the rate of 6.625%.

An update to ST-275, Combined Atlantic City Luxury Tax and State Sales Tax Collection Schedule , is available.

Disposition of Revenues

Revenues are forwarded to the Sports and Exposition Authority for funding and operating Atlantic City Convention facilities.


Last Updated: Tuesday, 03/31/20