This is a continuation of last year’s multipronged tax package which saw New Jersey’s sales tax rate decline originally from 7.0 percent in exchange for last year’s gas tax increase from 14.5 to 37.1 cents per gallon.
According to the NJ Division of Taxation, the new tax rates will be:
- New Jersey Sales and Use Tax – 6.625%;
- New Jersey Gas Tax will be reduced to 6.625% (down from 6.875% – $.23/gallon and State’s 7% sales tax which was previously passed in October 2016);
- Boat and Other Vessels Sales Tax – 3.3125% (50% reduced rate);
- Cape May County Tourism Tax – 8.625% (6.625% New Jersey Sales and Use Tax and 2% Tourism Tax for Wildwood, Wildwood Crest, and North Wildwood). This rate is in addition to the 1.85% Tourism Assessment and the 3.15% State Occupancy Fee on hotel occupancies;
- Salem County Sales Tax – 3.3125% (50% reduced rate);
- Urban Enterprise Zone Sales Tax – 3.3125% (50% reduced rate);
- Atlantic City Luxury Tax:
- 625% (9% Atlantic City Luxury Tax and 3.625% New Jersey Sales and Use Tax for sales subject to both taxes – other than alcoholic beverages by the drink);
- 625% (3% Atlantic City Luxury Tax and 6.625% New Jersey Sales and Use Tax for alcoholic beverages that are sold by the drink in Atlantic City).
Organizations will want to make sure that their computers and systems have been programmed to begin charging the lower Sales Tax rate on January 1, 2018. Should you need further clarification or have any questions, please contact our State and Local Tax team:
How Can We Help?
For questions or to speak with a member of Withum’s State and Local Tax team, please contact us by filling out the form below.
