Notice to All Natural Gas Vendors
The State's five-year Direct Payment Permit Program for qualified natural gas customers ends as of December 31, 2002, and the Permit (ST-6E) expires. All retail sales of natural gas (*) delivered in New Jersey to such customers on and after January 1, 2003 must include the 6% New Jersey sales tax. The law requires that the 6% sales tax be included in the customer's rate. It is not acceptable for the vendor to separately state the tax as a line item on the customer's bill.
Charges for utility service (**) provided and usually billed by New Jersey's public utility energy companies are also subject to the 6% New Jersey sales tax, and these charges have been fully subject to New Jersey sales tax since January 1, 1998. The law also requires that the 6%sales tax on these transportation charges be included in the customer's rate by the billing company. It is not acceptable for the vendor to separately state the tax as a line item on the customer's bill.
The exemption for purchases of natural gas and utility service by the following customer classes remains in effect:
Charges for utility service (**) provided and usually billed by New Jersey's public utility energy companies are also subject to the 6% New Jersey sales tax, and these charges have been fully subject to New Jersey sales tax since January 1, 1998. The law also requires that the 6%sales tax on these transportation charges be included in the customer's rate by the billing company. It is not acceptable for the vendor to separately state the tax as a line item on the customer's bill.
The exemption for purchases of natural gas and utility service by the following customer classes remains in effect:
- Utility corporations or persons that were subject to the provisions of P.L.1940, c. 4 (N.J.S.A. 54:30A-16 et seq.) as of April 1, 1997 or were formerly or are currently subject to the provisions of P.L.1940, c. 5 (N.J.S.A. 54:30A-49 et seq.). [Exempt Use Certificate (ST-4) must be provided to vendor]
- Cogenerators in operation, or which filed an application for an operating permit or a construction permit and a certificate of operation in order to comply with air quality standards under P.L.1954, c. 212 (C.26: 2C-1 et seq.) with the New Jersey Department of Environmental Protection, on or before March 10, 1997. [Exempt Use Certificate (ST-4) must be provided to vendor]
- Special contract customers for which a customer-specific tax classification was approved by a written Order of the New Jersey Board of Public Utilities prior to January 1, 1998.
- Agencies or instrumentalities of the federal government.
- International organizations of which the United States of America is a member.
- Cemetery companies, pursuant to N.J.S.A 8A: 5-10. [Exempt Use Certificate (ST-4) must be provided to vendor]
- Amtrak (National Railroad Passenger Corporation).
- Limited Dividend Housing Corporations organized under N.J.S.A. 55:16-1 et seq., for use at the qualified housing project. [Exempt Use Certificate (ST-4) must be provided to vendor]
If you have any questions, please contact Regulatory Services at (609) 292-5994.
(*) "Natural Gas" means any gaseous fuel distributed through a pipeline system.
(**) "Utility service" means the transportation or transmission of natural gas or electricity by means of mains, wires, lines or pipes, to users or customers.
(**) "Utility service" means the transportation or transmission of natural gas or electricity by means of mains, wires, lines or pipes, to users or customers.