The New Jersey Sales and Use Tax will be reduced in two phases between 2017 and 2018. The first phase went into effect on January 1, 2017 and small businesses should adjust accordingly. The Sales and Use Tax is now 6.875%, which is a decrease from 7%.
The New Jersey Division of Taxation created the following guide. Click here for more information – Sales Tax – or here to contact the Division: Tax Questions
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. All tax calculations should be rounded accordingly. For guidance see the “How to Calculate the Sales Tax” on the New Jersey Division of Taxation website. 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%.
