N.J. Admin. Code § 18:24B-1.9

Current through Register Vol. 56, No. 24, December 18, 2024

Section 18:24B-1.9 - Relief from certain liability for purchasers

(a) The Division will relieve a purchaser from liability for penalties, but not the tax or interest associated therein, for having failed to pay the correct amount of sales or use tax in the following circumstances:

1. A purchaser's seller or CSP relied on erroneous data provided by the Division on tax rates, boundaries, taxing jurisdiction assignments, or in the taxability matrix completed by the Division;

2. A purchaser holding a direct pay permit relied on erroneous data provided by the Division on tax rates, boundaries, taxing jurisdiction assignments, or in the taxability matrix completed by the Division;

3. A purchaser relied on erroneous data provided by the Division in the taxability matrix completed by the Division; or

4. A purchaser using databases pursuant to subsections (F), (G), and (H) of Section 305 of the SSUTA (Local Rate and Boundary Changes) relied on erroneous data provided by the Division on tax rates, boundaries, or taxing jurisdiction assignments. After providing adequate notice as determined by the Governing Board, the Division may provide an address-based database for assigning taxing jurisdictions pursuant to Section 305 of the SSUTA, subsection (G) or (H) and may cease providing liability relief for errors resulting from the reliance on the database provided by the Division.

(b) Except where prohibited by the New Jersey Constitution, the Division will also relieve a purchaser from liability for tax and interest for having failed to pay the correct amount of sales or use tax in the circumstances described in (a) above, provided that, with respect to reliance on the taxability matrix completed by the Division, such relief is limited to the Division's erroneous classification in the taxability matrix of terms included in the Library of Definitions as "taxable" or "exempt," "included in sales price" or "excluded from sales price," or "included in the definition" or "excluded from the definition."

(c) For purposes of this section, the term "penalty" means an amount imposed for noncompliance that is not fraudulent, willful, or intentional, which is in addition to the correct amount of sales or use tax and interest.

(d) The Division may allow relief on terms and conditions more favorable to a purchaser than the terms required by this section.

N.J. Admin. Code § 18:24B-1.9

Amended by 49 N.J.R. 338(a), effective 2/21/2017