Sales Tax
Back to General Info Home
NEW JERSEY SALES TAX                            
Under the New Jersey Sales and Use Tax Act, we are required to collect 7% tax on all nursery stock sold, unless we have proper documentation that the sale is exempt.

As Of 10/1/06, The Law Changes The Taxability Of The Following:

Landscaping Services (N.J.S.A. 54:32B-3(b)(2))

The law defines “Landscaping Services” as services that result in a capital improvement to land, other than structures of any kind whatsoever, such as: seeding, sodding or grass plugging of new lawns; planting trees, shrubs, hedges, plants; and clearing and filling land. (N.J.S.A. 54:32B-2(ww)). Previously, certain landscaping services that resulted in a capital improvement were exempt. The law eliminates the capital improvement exemption for landscaping services, so now the labor is taxable. Businesses that provide landscaping services are still treated as contractors under the law.

Delivery Charges for Taxable Goods and Services (N.J.S.A. 54:32B-8.11)

The law modifies the exemption for delivery charges that are separately stated from the purchase price of an item on the invoice, bill or similar document given to the purchaser. The law provides for the taxation of delivery charges on taxable items and retains the exemption for delivery charges on nontaxable items like clothing.

The law defines “Delivery Charges” as charges by the seller for preparation and delivery to a location designated by the purchaser of personal property or services including, but not limited to, transportation, shipping, postage, handling, crating, and packing. If a shipment includes both exempt and taxable property, the seller should allocate the delivery charge by using: (1) a percentage based on the total sales price of the taxable property compared to the total sales price of all property in the shipment; or (2) a percentage based on the total weight of the taxable property compared to the total weight of all property in the shipment. N.J.S.A. 54:32B-2(rr). Thus, only the portion of the delivery charge that relates to the taxable property or services is subject to tax.

THE FOLLOWING SALES ARE EXEMPT:
Customer Located in New Jersey:
  1. Stock is exempt which will be resold with appropriate N.J. Sales Tax collected.  We must be provided with a properly executed Resale Exemption Certificate, (Form ST-3), prior to stock being invoiced.
  2. Stock purchased from us and used for Federal, State of New Jersey, or New Jersey municipal projects is non-taxable, provided we have received, prior to stock being invoiced, a Contractor's Exempt Purchase Certificate, (Form ST-13), for each individual order.
  3. Stock which will be planted on our customer's nursery for growing on to a larger size is exempt if we have a properly executed Farmer's Exemption Certificate, (Form ST-7), prior to stock being invoiced.

Please note:  Sales to landscape contractors are not tax exempt, and the 7% New Jersey Sales tax must be added by us to the invoice unless they qualify under #2 shown above.

Out of State Customers (Except Connecticut)
Sales to out of state customers which are delivered by us or a carrier hired by us are exempt from New Jersey Sales Tax, if delivered to the out of state location.*

Sales made by us to an out of state customer, in which the customer picks up the stock in New Jersey, are taxable, and subject to the New Jersey 7% Sales Tax unless the goods are intended to be resold at retail and the out of state customer has properly registered with the New Jersey Division of Taxation and has issued to us a properly executed Resale Exemption Certificate, (Form ST-3).  Please note that Form ST-3 is valid only when completed by a customer registered with the New Jersey Division of Taxation.

Please ask us to send you the sales tax information sheet for landscapers and nurserymen if you are unfamiliar with the New Jersey law.  Out of state purchasers can register with the New Jersey Sales Tax Bureau.  If we can help in any way to clarify the New Jersey Sales Tax Requirements, please let us know.

*Customers in Connecticut should contact our Credit Manager for information regarding sales tax collections for that state.

Email Credit Manager - trichardson@princetonnurseries.com