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Division of Taxation

Sales Tax Transition from 6.875% to 6.625%

Sales Made Between January 1, 2017, and December 31, 2017, but Not Completed Until On or After January 1, 2018

The following chart shows the taxability of transactions of tangible personal property, specified digital property, or services that begin between January 1, 2017, and December 31, 2017, but are delivered or rendered on or after January 1, 2018.

Type of Sale
Sales Tax Rate for Delivery of Product or Service Which Occurred between January 1, 2017, and December 31, 2017
Sales Tax Rate for Delivery of Product or Service Which Occurs on or After January 1, 2018
Notes
Leases and Rentals of Tangible Personal Property: Agreements longer than six months 6.875% Extensions or renewals of such agreements that occur on or after January 1, 2018, are subject to tax at the rate of 6.625%.
Leases and Rentals of Tangible Personal Property: Agreements less than six months 6.875% 6.625%
Boats and Other Vessels 3.3125% The Sales and Use Tax Act provides a 50 percent exemption on the sale of new and used boats or other vessels (including motorboats, sailboats, yachts, and cruisers) and caps the amount of Sales and Use Tax due from a purchaser at $20,000.
Service/ Maintenance Contracts: Lump sum payment 6.875%, regardless of whether or not the agreement covers periods after January 1, 2018 6.625%, Only if the bill for such service or maintenance agreement is issued on or after January 1, 2018
Service/ Maintenance Contracts: Periodic payment - rate applicable when the bill is issued 6.875% 6.625%
Sales of Services 6.875% 6.625% If services were completed between January 1, 2017 and December 31, 2017, but the bill is rendered (e.g. dated) on or after January 1, 2018, the tax rate is 6.625%.
Admission Charges 6.875% 6.625% If the tickets were actually sold and delivered on or before December 31, 2017, but after January 1, 2017, the seller must collect tax at the rate of 6.875%.
Membership Fees 6.875% 6.625% A customer may request a refund of Sales Tax, if he or she paid 6.875% Sales Tax for membership fees or dues between January 1, 2017, and December 31, 2017, and the fees or dues cover periods beginning on or after January 1, 2018.
Taxable Occupancies 6.875% 6.625% A customer may apply for a refund of Sales Tax, if he or she paid Sales Tax at 6.875% for an occupancy which extends past January 1, 2018.

Last Updated: Thursday, 03/19/20