N.J. Admin. Code § 18:18A-1.2
The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise. Additional words and terms are also set forth in the statute at 54:15B-2.
"Act" means the "Petroleum Products Gross Receipts Tax Act," as set forth at 54:15B-1et seq., and any subsequent amendments.
"Blending" means combining, compounding, or mixing one or more petroleum products with additives or other substances resulting in a new or enhanced petroleum product.
"Book transfer" means:
1. An accounting procedure for simultaneously settling multiple petroleum delivery obligations in which all of the following occurs:
i. Three or more petroleum companies have sequential product supply obligations to each other for the same volume of product;
ii. Each customer of its supplier in the sequence agrees to release its supplier from its delivery obligation in consideration for that customer's supplier causing (directly or indirectly) its customer to be released from its delivery obligation to the next party in the sequence;
iii. The sequential releases continue down the chain until the first party in the delivery chain, which has been released from its delivery obligation, becomes the last party in the chain by releasing the penultimate party from its delivery obligation;
iv. No physical volume of product is ever transferred; and
v. All parties book identical volumes from beginning to end.
2. In addition, and for purposes of this chapter only, a book transfer may also mean and include a sale from a direct payment permit holder to another direct payment permit holder.
"Co-generation facility" means a facility the primary purpose of which is the sequential production of electricity and steam or other forms of useful energy that are used for industrial or commercial heating or cooling purposes and which is designated by the Federal Energy Regulatory Commission, or its successor, as a "qualifying facility" pursuant to the provisions of the Public Utility Regulatory Policies Act of 1978, Pub. L. 95-617.
"Commercial consumers" means those companies that produce, consume, blend or distribute substantial quantities of petroleum products in the state, companies making sales pursuant to a written contract extending one year or longer to nonprofit entities qualifying under 54:32b-9(b) as evidenced by an invoice prescribed by 18:18A-1.2, and companies making sales to governmental entities qualifying under 54:32B-9(a), or such other company as may be licensed by the Director.
"Company" means a corporation, partnership, limited partnership association, individual, or any fiduciary or other person or entity engaged in activities subject to the Petroleum Products Gross Receipts Tax Act.
"Director" means the Director of the Division of Taxation in the Department of Treasury.
"Direct payment permit holder" means a company licensed by the Director pursuant to 54:15B-12and other registered vendors, including purchasers of dyed fuel. Direct payment permit holders are authorized to file reports and remit applicable tax directly to the Director.
"Exchange agreement" means the loaning of a petroleum product by one company to another company to facilitate supply needs at a particular location. An exchange balance settlement is a common method used to balance out the product receivable at a specified time. An exchange balance settlement is an economic value established for the volumes involved and booked accordingly by each party to the exchange.
"Exempt organization" means an organization authorized as an exempt organization with the Division of Taxation for sales and use tax purposes.
"Exportation" or "export" means the conveyance of petroleum products from New Jersey to a location outside New Jersey for the purpose of sale or use outside the State.
"First sale of petroleum products within this State" means the initial sale of petroleum products delivered to a location in New Jersey and sold to a purchaser which is not the holder of a direct payment permit. A "first sale of petroleum products within this State" does not include a book or exchange transfer of petroleum products, if such products are intended to be sold in the ordinary course of business.
"Gross receipts" means all consideration derived from first sales of petroleum products within this State. In addition to the exclusions set forth at 54:15B-2.1and 2.2, Gross receipts do not include:
1. Consideration derived from sales to a company that has been issued an ST-5 exemption certificate by the Division of Taxation pursuant to the Sales and Use Tax Act, has a written contract with its vendor extending one year or longer, and has a written invoice to evidence the transaction;
2. Consideration derived from sales of petroleum products sold to the State of New Jersey, or any of its agencies, instrumentalities, public authorities, public corporations, political subdivisions, or school boards;
3. Consideration derived from the first sale of petroleum products to the United States Government, or to any of its departments, agencies, or instrumentalities for use in a Federal government function or operation;
4. Consideration derived from sales of petroleum products sold to the United Nations or any international organization of which the United States of America is a member;
5. The tax imposed under 54:15B-3; and
6. Sales of petroleum products used by a utility, a co-generation facility, or a wholesale generation facility to generate electricity for resale or to an end user, except if the end user is the facility used to generate the electricity or the end user is the owner of the property in which the co-generation facility is located or connected to.
"Invoice" means a document related to a sale showing:
1. The name and address of the person from whom the petroleum products were purchased;
2. The name and address of the purchaser;
3. The date of purchase;
4. The type and quantity of the product purchased;
5. The price paid for the purchase of the product and the amount of tax may be separately stated if that amount is known, or the amount of tax may be included in the receipt with a statement that the receipt includes New Jersey Petroleum Products Gross Receipt Tax; and
6. An acknowledgment by the seller that payment of the cost of the product to the seller has been made.
"Petroleum products" means products that are specified as petroleum products under 54:15B-2and may also include certain finished manufactured products. The definition does not include certain finished manufactured products that may contain petroleum as an ingredient but are not themselves deemed petroleum products.
"Residential building" means a single or multi-family dwelling, nursing home, trailer, condominium, boarding house, apartment house or other structure designed primarily for use as a dwelling including a hospital, barracks, dormitory, or prison but not including a hotel, motel or like establishment offering shelter on a transient basis of less than 90 days.
"Residential use" includes the use of No. 2, No. 4, or No. 6 fuel oil, kerosene, and propane in a residential building.
"Sale for exportation" means a sale of petroleum products to a purchaser who exports the product.
"Use" means the exercise of any rights or power over a petroleum product by a purchaser or importer thereof including, but not limited to, the receiving, storage or any keeping or retention for any length of time, withdrawal from storage, any installation or affixation to real or personal property, combustion or incorporation into a product for sale which product is not an identifiable petroleum product. The term "use" does not include blending, compounding, or packaging where the resulting product is also a petroleum product. The term "use" does not include storage or keeping of petroleum products held in inventory by a merchant that are exported from the State for sale or use outside the State.
"Wholesale generation facility" means a facility the primary purpose of which is the sequential production of electricity to be sold exclusively at wholesale as determined by the Federal Energy Regulatory Commission, or its successor, as an "exempt wholesale generator" pursuant to the provisions of section 32 of the 'Public Utility Holding Company Act of 1935,' 15 U.S.C. § 79z-5a.
N.J. Admin. Code § 18:18A-1.2