Notice to Businesses "We Pay the Tax" Days Authorized
(May 5, 2003)
Recently enacted legislation ( P.L. 2003, c. 42) authorizes most New Jersey retail vendors to advertise that the vendor will pay the 6% New Jersey sales tax for the customer in particular transactions. This is a change from the prior law, which prohibited vendors from advertising in this way. Sellers of natural gas, electricity, and utility services are NOT authorized to advertise in such a manner.
In order to take advantage of the new law, the vendor must meet the following conditions:
In order to take advantage of the new law, the vendor must meet the following conditions:
- The advertisement must indicate that the vendor is paying the tax for the customer and cannot imply that the sale is not subject to tax;
- If the customer receives a sales receipt, invoice or other written statement of the transaction, it must indicate that the 6% New Jersey sales tax is being paid by the vendor;
- The vendor must pay the tax as trustee for the State and is liable for the tax in the same manner as if it were collected from the customer.