State Sales Tax Rates

State Sales Tax Rates New Jersey State Sales Tax 2014

New Jersey Sales Tax 2014
New Jersey State Sales Tax for 2014 Maximum Municipal Sales Tax

7.00%

0.00%

What is the New Jersey Sales Tax?

The New Jersey state sales tax is 7%, with a maximum possible sales tax (including local and municipal sales taxes) of 7%.

Unlike some other states, New Jersey does not allow local and municipal governments to impose their own sales taxes. The maximum sales tax that can be collected anywhere in New Jersey is 7% of the qualifying purchase price.

New Jersey has a special program of reduced sales tax rates in Urban Enterprise Zones, where the sales tax can be lowered by as much as 50% to encourage consumer spending. Exemptions to the general sales tax include household paper products (which are completely exempt), gasoline (which is instead subject to an excise tax of $0.145 per gallon) and animal fur products valued more then $500 (which are taxed at a rate of 6%).

What sales are exempt from the New Jersey Sales Tax?

New Jersey Sales and Use Tax Rates

Many states set special sales tax rates for certain types of goods like groceries or clothes, and may completely exempt certain transactions from state and local sales taxes. New Jersey completely exempts unprepared food and groceries, prescription drugs, and clothing from the New Jersey state sales tax.

New Jersey does not have special sales tax rates for certain types of purchase, a common practice in many states for goods such as food and clothing.While many other states also collect a special (and often higher) sales tax on prepared and restaraunt food, New Jersey does not have a specific restaraunt sales tax.

Generally, the New Jersey sales tax is collected only from the end consumer, or the end user of the product. Customers buying products in bulk, as a business-to-business transaction, or buying with the intent to resell do not have to pay the New Jersey sales tax if they provide the seller with a New Jersey Sales Tax Exemption Certificate at the time of purchase. Most states will accept the Uniform Sales and Use Tax Certificate for this purpose, which is available from the Multistate Tax Commission here.

Internet Sales Tax, or tax on purchases made over the internet, is currently a gray area in many states' tax codes. While most states can collect sales tax on internet purchases made within the state (the vendor and consumer are both located in New Jersey), taxation of interstate internet transactions is much more complicated.

Currently New York, Rhode Island, North Carolina, Colorado, and Illinois have some form of online sales tax that also handles interstate transactions. For details on how New Jersey handles taxation of online sales, read more about online sales taxes in the United States.

Resources:

[1] Table of state sales taxes on Wikipedia
http://en.wikipedia.org/wiki/Sales_taxes_in_the_United_States#By_jurisdiction

[2] New Jersey sales tax information on Tax-Rates.org
http://www.tax-rates.org/New Jersey/sales-tax

[3] Table of state sales, use, and excise taxes by The Tax Foundation
http://www.taxfoundation.org/taxdata/show/245.html

[4] State level taxation resources on IRS.gov
http://www.irs.gov/businesses/small/article/0,,id=99021,00.html