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Division of Taxation

Natural Gas Sales & Use Tax Exemption

In accordance with P.L. 1997, c. 162 (the "energy tax reform statute") and other laws, as noted, the following entities are exempt from the New Jersey Sales and Use Tax on purchases of natural gas and related transportation.

  1. Utility corporations or persons that were subject to the provisions of N.J.S.A. 54:30A-16 as of 4-1-97 or were formerly or are currently subject to the provisions of N.J.S.A. 54:30A-49 et seq.(Exempt Use Certificate (ST-4) must be provided to seller);
  2. Cogenerators in operation, or which have filed an application for an operating permit or a construction permit and a certificate of operation in order to comply with air quality standards under PL 1954, c.212 (C.26:2C-1 et seq.) with the New Jersey Department of Environmental Protection, on or before March 10, 1997. (must provide an Exempt Use Certificate (ST-4 ) to seller)
  3. Special contract customers for which a customer-specific tax classification was approved by a written Order of the New Jersey Board of Public Utilities prior to January 1, 1998.
  4. Agencies or instrumentalities of the federal government.
  5. International organizations of which the United States of America is a member
  6. Cemetery companies, pursuant to N.J.S.A 8A:5-10. (must provide an Exempt Use Certificate (ST-4 ) to seller)
  7. Amtrak (National Railroad Passenger Corporation)
  8. Limited Dividend Housing Corporations organized under N.J.S.A. 55:16-1 seq., for use at the qualified housing project. (must provide an Exempt Use Certificate (ST-4 ) to seller)
  9. Delaware River Port Authority (N.J.S.A. 32:3-13.54)
  10. Urban Enterprise Zone businesses which have been qualified by the New Jersey Department of Commerce, pursuant to N.J.S.A. 52:27H-60 (must provide UEZ Energy Sales Tax Exemption Certificate (UZ-6) to seller)
  11. Salem County manufacturing businesses which have been qualified by the New Jersey Department of Commerce, pursuant to N.J.S.A. 52:27H-87.1 (must provide Salem County Energy Sales Tax Exemption Certificate (SC-6) to seller)

* NOTE - State and local government entities and qualified exempt organizations such as schools, churches, nursing homes etc. are not exempt from sales tax on purchases of natural gas, electricity and utility service. Urban Enterprise Zone businesses are also not exempt, except as noted in #10 above.


Last Updated: Thursday, 02/20/20