Cliff's Notes

New Jersey Sales & Use Tax

New Jersey Division of Taxation ! Technical Services Activity About New Jersey Taxes
Technical
Services
Rev. 4/08
What is Use
Tax?
The New Jersey Sales and Use Tax Act (N.J.S.A. 54:32B-1 et seq.) provides for use tax to be imposed
when taxable goods and services are purchased for use in New Jersey but sales tax was not collected by the
retailer in the state of purchase or was collected at a rate less than the New Jersey sales tax rate.
When sales tax is not collected at the time of purchase or is collected at a rate less than the current New
Jersey sales tax rate of 7%, the purchaser is liable for use tax to New Jersey.
Examples of when use tax is due:
• Taxable goods and services are purchased out of State for use in New Jersey and no sales tax is
collected. The purchaser owes use tax.
• Taxable goods and services are purchased out of State for use in New Jersey and sales tax is collected at
a lower rate than New Jersey’s. The purchaser owes use tax. See Reciprocity below.
• Items of inventory that were purchased tax-free with a resale certificate are used by the purchaser (e.g.,
are given away as part of a promotion). The purchaser owes use tax.
Out-of-State Purchases Received Outside New Jersey. When taxable goods and services are purchased
and received in another state and sales tax is paid to that state, New Jersey will allow a credit against the
use tax due, provided that the other state allows a similar credit for sales tax paid to New Jersey. If the sales
tax rate in a reciprocating state is equal to, or greater than, New Jersey’s 7% tax rate, no use tax is due.
If the sales tax rate in the state where the purchase is made is less than New Jersey’s, use tax is due at the
rate of 7%. However, if the other state has sales tax reciprocity with New Jersey, a credit for the sales tax
paid there is allowed against the use tax due. For example, if the out-of-State purchase was for $100 and the
sales tax rate was 4%, the purchaser paid $4 in sales tax. The New Jersey use tax is $7 (7% × $100), less a
credit for the $4 already paid, for a use tax due of $3.
Out-of-State Purchases Delivered to New Jersey. When taxable goods and services are purchased in
another state and delivered to New Jersey for use in New Jersey, no credit is allowed for sales tax paid to
the other state. Use tax is due at the rate of 7% of the purchase price, including delivery charges.
Purchases Made in a Foreign Country. When taxable goods and services are purchased in a foreign
country, no credit is allowed for sales tax paid to the foreign country, regardless of whether the purchaser
takes possession of the items there or has them delivered to New Jersey. Use tax is due at the rate of 7% of
the purchase price, including delivery charges.
When taxable tangible personal property or digital property is purchased from an out-of-State business and
the buyer takes possession of it in New Jersey, the seller will collect New Jersey sales tax if registered to do
business in this State. In that case, no use tax is due. On the other hand, an out-of-State business that is not
registered in New Jersey cannot legally collect New Jersey sales tax. If taxable merchandise is purchased
from an out-of-State business that does not charge New Jersey sales tax, it does not mean that tax isn’t due,
but rather that the seller is not authorized to collect it. In such instances, the purchaser is required to remit
use tax directly to New Jersey.
Reciprocity
Imposition of
Use Tax
Registered
Businesses

November 10, 2009 Posted by Cliff's Notes Blog | 1 | Leave a comment

Contact Perfect Matrix, NJ Tax Man, The Dentist Song

Cliff’s Notes for November 8, 2009

…..E-Blast…..

Cliff Marsh, Henry Schein ……Cell: 201-321-7494……Fax: 201-262-2210…..E-mail cliff.marsh@henryschein.com

http://www.cliffsnotesblog.wordpress.com

“A tree’s a tree, how many more do you need to look at?”

Ronald Reagan

In This Weeks Issue

* Must See Product – Contact Perfect Matrix.

* Everyone Needs a Steiglitz.

* DemandForce puts Patients Back in the Chair.

* Beware of the NJ Tax Man! – See Attachment

* Attachment – Amalgam Separator State Registration Form

* The Dentist Song by Steve Martin

Contact Perfect Matrix………………………………………………………….

The Contact Perfect Matrix was developed several years ago and was just redesigned. At the Greater NY Dental Show it will be demonstrated at the Shofu exhibit (booth #2006) and Tokuyama (booth #2103). The design is universal and utilizes removable interproxmal windows. Once opened, resin is allowed to expansively flow and conform through the open window for predictable and amazing contacts.

http://www.contactperfect.com

Everyone Needs a Steiglitz………………………………………………………

The Steiglitz Forceps is one of those neat little instruments that will sit in the draw and collect dust until you need it, and then it is priceless! The narrow beak is designed to retrieve posts, points and separated files. At $30.99 it will pay for it’s self the first time you use it. They are available in 45 or 90 degree angles.

45║ Steiglitz Post and Point Removal Forceps

Product Code:

45 degree angle #101-4772

90 degree angle #101-5107

Steiglitz Root Forceps – 45 degree shown

DemandForce Works! It puts Patients Back in the Chair………………………

DemandForce works! I have seen this program function in over a dozen offices and every one of them can measure the difference. Most offices were disappointed at first but that quickly changed. You need to understand that it take 90 days before you can notice results. On line demos are available upon request.

http://www.demandforce.com

Beware of the NJ Tax Man!!…………………………………………………………………..

Here we go again. The NY Dental Meeting is coming in a few weeks and a lot of companies will say, and I quote “WE DON”T CHARGE NJ SALES TAX”. Wrong, wrong, wrong!!! No one charges sale tax, sales tax is collected. It is supposed to be collected by the seller and transferred to the state where the buyer takes possession. Out of state companies are not mandated to collect state sales tax unless they have a physical presence in the state. Also, in the State of New Jersey, 40% of your everyday purchases are non taxable.

If sales tax is not collected, it is your responsibility to complete a Use Tax Form and submit the tax payment. This is something you want to consult with your accountant about. Sales tax is the law and the penalties and fines can be devastating. As the economy tightens, the state will be looking for everything.

For more information on the topic, please refer to the attachment “NJStateSalesTax.pdf.”

Attachment – State of New Jersey Amalgam Separator Registration Form…

Let’s understand exactly what an amalgam separator is. It is a solids collector. It is similar to the collection filter on your vacuum pump, but much finer. It actually takes the place of the pump filter. However, installing it is not the only thing required by law. You have to register it. Attached you will find registration information

The Dentist Song by Steve Martin……………………………………………….

Today is Sunday, November 8th. I know that just about everyone has heard this before, but it is always worth another listen. Turn up the volume, enjoy and have a great day.

Cliff Marsh

Henry Schein Dental

P.O. Box 663, 45 Rt. 46 East, Suite 605

Pine Brook, NJ 07058

tel. 201-321-7494

fax.201-262-2210

e-mail. cliff.marsh@henryschein.com

November 10, 2009 Posted by Cliff's Notes Blog | 1 | Leave a comment