Effective Use Tax Rates
Effective Use Tax Rate Agreements (EUTRA), also known as Sales and Use Tax Compliance Agreements are formal individualized agreements between the Division of Taxation and the Taxpayer. EUTRAs allow the use of an "effective tax rate" to calculate sales and use taxes owed. EUTRAs generally have a term of three years or less. Conditions under which the agreement may require modification or termination are agreed upon by both parties. Upon request to enter the program, the Division will determine if the Taxpayer is qualified to participate and then conduct an audit to establish the "effective tax rate." A Taxpayer is eligible if they:
For further information please contact:
Lawrence F. Gauges
Phone: (609) 292-7152
Fax: (609) 633-6201 or
E-mail us
- Are required to file and remit any New Jersey sales and use tax returns and payments; Demonstrate a willingness and ability to understand and comply with tax laws; Maintain an acceptable system of internal controls and business records; and
- Has maintained a good filing record for all taxes and is currently in good standing.
- Eliminates the need to pay the sales tax at the time of purchase or compute and remit the use tax on a transaction-by-transaction basis. Predictability and consistency of approach in tax reporting; Decisions regarding tax compliance is made by in-house and/or outside tax experts as opposed to non-tax personnel; Increased accuracy in sales and use tax budgeting and more certainty and consistency of sales and use tax expenses; Development of cooperative relationship with Division of Taxation; Reduced audit costs; Increased confidence in reported taxes; Redirection of staff to other audit candidates; and
- Timely receipt of sales and use taxes.
- Have failed to correct improper reporting methods; Filed for bankruptcy or are controlled by a company that has filed for bankruptcy; Maintain inadequate books and records and have poor internal controls; or
- Are involved in or have been involved in an ongoing criminal investigation.
- Resale and inventory purchases; Utility and Telecommunications services; Meals and lodging; Motor vehicles, vessels, and aircraft;
- Items which the Division and the Taxpayer do not agree.
- Merger or acquisition; Significant start up or closing costs of facilities; Significant changes involving business activities; Adoption of cost containment programs; or
- Significant financial or accounting changes.
For further information please contact:
Lawrence F. Gauges
Phone: (609) 292-7152
Fax: (609) 633-6201 or
E-mail us