Sales tax is a very common way to raise government revenue. New Jersey is no exception. Nonetheless, some businesses may obtain a blanket New Jersey tax exemption. Others, such as resellers, may receive a sales tax exemption on certain kinds of purchases. A business seeking to take advantage of these New Jersey exemptions should first complete a business registration with the New Jersey Division of Revenue. They can then use tax exempt forms to obtain New Jersey sales tax exemptions.
File any necessary formation documents with the New Jersey Business Services Unit. You can file online with the New Jersey Online Business Filing and Registration Service at Https://www.state.nj.us/treasury/revenue/dcr/filing/leadpg.htm. This step is required for new New Jersey businesses that are filing as a corporation, limited partnership or limited liability company. Businesses should do this step first because they can then use the filed business entity’s name to register for New Jersey sales tax and get the desired tax exemptions available to New Jersey businesses.
See if you need an FEIN, which is a federal employer identification number. Go to the IRS.gov website and run a search for “EIN registration requirements” to see if you need to get an FEIN and how to register. Generally speaking, you must get a federal tax ID number if you are registering any nonprofit corporation or have any business with employees that earn a wage.
Fill out and submit a New Jersey “Business Registration Application,” which is accessible at state.nj.us/treasury/revenue/forms/njreg.pdf. You may also file online at NJ.gov/njbgs. By submitting this document, you may register for New Jersey sales taxes. Although there may be some exceptions, it is best to register to collect sales taxes if you intend on getting New Jersey tax exemptions from sales tax.
Send the form to the following address to get a New Jersey sales tax license:
P.O. Box 252
Trenton, NJ 08646-0252
If you are in a hurry to get started, you can send it overnight to the following address:
33 W. State. St.
Trenton, NJ 08608
Find out what New Jersey tax exemptions apply to your business or its purchase transactions. It is advisable at this point to seek the advice of a New Jersey business attorney to make sure you claim all of your sales tax exemptions. You can do your own homework here but may miss things if you are not experienced with legal research. You may also call (609) 292-6400 to ask a question, but that Division of Taxation Customer Service Center will generally not give legal advice.
One of the ways to check for New Jersey tax exemptions is to access the “New Jersey Exempt Use Certificate”(sometimes called a resale certificate because resale is one exemption on this New Jersey tax exempt form). Access the form at state.nj.us/treasury/taxation/pdf/other_forms/sales/st4.pdf. Give this tax exempt certificate to the seller when you buy goods that are exempt from sales tax.
The other common New Jersey tax exemption is for nonprofits. Find the application form at state.nj.us/treasury/taxation/pdf/other_forms/sales/reg1e.pdf. Fill it out and send it in to the New Jersey Division of Taxation to qualify for this New Jersey sales tax exemption.
New Jersey Business Registration Application