N.J. Admin. Code § 18:24-7.4

Current through Register Vol. 56, No. 23, December 2, 2024

Section 18:24-7.4 - Computation of tax on purchase price; trade-in

(a) Where any person engaged in the business of selling motor vehicles at retail completes a sale of a motor vehicle, he or she shall collect the sales or use tax, as may be the case.

(b) The tax shall be computed upon the full amount of the purchase price of a motor vehicle less any deduction for the trade-in of property of a like kind, if any.

(c) A deduction from the purchase price, equal to the amount of a trade-in actually allowed on the purchase, will be permitted, provided that:

1. The purchase and trade-in occur at the same time. A separate or independent sale of a motor vehicle is not considered a trade-in even if the proceeds of the sale are immediately applied by the seller to a purchase of a motor vehicle from the buyer;

2. The trade-in consists of property of the same kind as that purchased and that is accepted as partial payment. "Property of the same kind" means any other motor vehicle;

3. The trade-in is acquired by a dealer of motor vehicles who is registered as such with the Motor Vehicle Commission and the New Jersey Division of Taxation; and

4. The dealer obtains the certificate of title of the traded in vehicle and retains a copy of it as part of the record of the sale transaction.

(d) Dealers are required to separately state New Jersey sales tax on any sales slip, invoice, receipt, or other statement of the price that is provided to the customer in connection with the sale.

N.J. Admin. Code § 18:24-7.4

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

Amended by 50 N.J.R. 907(a), effective 2/20/2018