N.J. Admin. Code § 18:24-7.18

Current through Register Vol. 56, No. 21, November 4, 2024

Section 18:24-7.18 - Exemption for sale, lease, or rental of certain commercial trucks and vehicles used in combination therewith

(a) Receipts from sales of the following are exempt from the tax imposed under the Sales and Use Tax Act:

1. Sales, rentals, or leases of commercial trucks, truck tractors, tractors, trailers, semi-trailers, and vehicles used in combination therewith, as defined in 39:1-1, which are properly registered as defined in 39:3-6.1, and:

i. Have a gross vehicle weight rating in excess of 26,000 pounds;

ii. Are operated actively and exclusively for the carriage of interstate freight; or

iii. Are registered pursuant to 39:3-24 or 39:3-25 and have a gross vehicle weight rating in excess of 18,000 pounds; and

2. Repair parts and replacement parts for such vehicles. Parts shall not include lubricants, motor oil, or antifreeze.

(b) For the purposes of motor vehicle dealer records indicating why sales tax has not been collected on sales of motor vehicles exempt from tax under this section or repair parts and replacement parts therefor, the dealer is required to obtain a fully completed Exempt Use Certificate (Form ST-4) or other approved form from the purchaser whether such purchaser is or is not registered with the Division of Taxation. When the purchaser is not registered with the Division of Taxation, a Certificate of Authority number is not required. However, an identification number or New Jersey registration plate number must be shown on Form ST-4 or other approved form.

(c) Nonconventional motor vehicles not designated or used primarily for the transportation of property and only incidentally operated or moved over a highway are not included within this exemption. Examples include, but are not limited to:

1. Ditch digging apparatus;

2. Well-boring apparatus;

3. Road and general purpose construction and maintenance machinery;

4. Asphalt spreaders;

5. Bituminous mixers;

6. Bucket loaders;

7. Ditchers;

8. Leveling graders;

9. Road rollers;

10. Earth-moving carryalls;

11. Self-propelled cranes;

12. Earth-moving equipment;

13. Bulldozers;

14. Road building machinery; and

15. Vehicles that operate on general registration plates transferable from vehicle to vehicle and that identify the owner rather than the vehicle.

(d) Equipment mounted on vehicles exempt from tax under this section is eligible for exemption only if it is an integral part of the basic vehicle, and the basic vehicle would lose its identity should the equipment be removed. If the equipment is not an integral part of the vehicle and can be severed from the vehicle, the equipment is not exempt from tax.

Example 1: Motor vehicle bodies or bodies on vehicles used in combination with exempt vehicles, such as trailers or semitrailers, permanently mounted so that they effectuate the purpose for which the vehicle is intended are exempt from tax.

Example 2: Devices used in or on vehicles for effectuating business purposes, such as shortwave receiving and transmitting of messages, are not considered an integral part of such vehicle and are not exempt from tax.

N.J. Admin. Code § 18:24-7.18

Amended by 48 N.J.R. 824(a), effective 5/16/2016