New Jersey Residents: Sales & Use Tax Changes

Gov. Jon S. Corzine signed last July a bill imposing major changes in New Jersey’s Sales & Use Tax law, effective October 1, 2006. The new law imposes tax on goods and services previously exempt; and raises the tax rate from six percent to seven percent.

• Space for Storage – furnishing of space for storage of tangible personal property.
• Tanning Services – including the application of a temporary tan provided by any means.
• Massage Services – massage, bodywork or somatic services, except such services provided pursuant to a doctor’s prescription.
• Tattooing – including all permanent body art and permanent cosmetic make-up applications.
• Investigation and Security Services – including detective agencies, private investigators, fingerprint and polygraph services, missing person tracing, and skip tracing services; bodyguard, personal protection, guard dog, guard, patrol, security services, and armored car services; security, burglar and fire alarm installation, repair and monitoring services.
• Information Services – furnishing of information of any kind provided through any means or method other than personal or individual use.
• Limousine Services – transportation services originating in the state of New Jersey, except in connection with funeral services.
• Membership Fees – initiation fees, membership fees or dues for access to or use of the property of a health and fitness, athletic, sporting or shopping club, except where membership is predominantly age 18 or under.
• Parking – excluding residential parking, employee parking (when provided by an employer or facility owned by the employer), municipal metered parking, and parking subject to tax imposed by any other law or ordinance.
• Magazine and Periodicals – subject to tax whether or not accessed by electronic means, excluding newspapers, and magazines or periodicals purchased through a subscription, or as part of a nonprofit organization membership.
• Digital Property – electronically delivered music, ringtones, movies, books, audio and video works and similar products.
• Prewritten Computer Software Delivered Electronically – electronically delivered software sold to individuals.
• Laundering – laundering, dry cleaning, tailoring, weaving and pressing on property other than clothing, including draperies, carpets, blankets, comforters, slipcovers, tablecloths, napkins, etc.
• Installing Floor Coverings – includes carpeting, linoleum, tile and padding; labor is now also taxable.
• Landscaping Services – services that result in a capital improvement to land; labor is now also taxable.
• Delivery Charges for Taxable Goods and Services – charges by the seller for preparation and delivery to a location designated by the purchaser of personal property or services; delivery charges on nontaxable items is exempt.

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