New Jersey Use Tax Credit for Tax Paid to Another State

Article ID: 34619  

Question
New Jersey Use Tax Credit for Tax Paid to Another State

Answer

If sales tax has been collected out of State, use tax is only due if the tax was paid at a rate less than 7%, based on the difference.

For example:
You purchased a computer for $1,550 plus $50 for shipping from a seller located outside of New Jersey and paid no sales tax. Your use tax liability to New Jersey on this item is $112 ($1,600 x.07 = $112).
- On a trip to Maine you purchased an antique desk for $4,000 and paid Maine sales tax at the rate of 5%. The difference, $80 (2% of the purchase price), is due to New Jersey as use tax.

Individual taxpayers report and remit use tax by either completing and filing the Use Tax Return (Form ST-18) within 20 days after property is brought into New Jersey or by reporting any use tax due on Line 45 of their resident income tax return, Form NJ-1040.


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Views: 822 Created on: Jun 15, 2013