Motor carrier taxes - New Jersey

Sales & use taxes

New Jersey imposes a sales and use tax. Generally, the sales and use tax is imposed on sales of tangible personal property, the sale of certain services, the use of tangible personal property, and the use of certain services.

The purchase, rental, or lease of commercial trucks, tractors, trailers, and vehicles used in combination with such, that are registered as required by New Jersey law and have a gross vehicle weight rating exceeding 26,000 pounds, or are operated exclusively for the carriage of interstate freight, are exempt from tax. Repair parts and replacement parts are also exempt. The exemption also applies to trucks, trailers, and truck trailer combinations that are used directly and exclusively in the production for sale of tangible personal property on farms when the vehicles have a gross vehicle weight rating exceeding 18,000 pounds and are registered with the Motor Vehicle Commission for farm use. Purchasers must submit a properly completed Exempt Use Certificate (Form ST-4) to the dealer in order to make a tax exempt purchase.

Other

Corporation business tax (CBT)

The Division of Taxation administers the CBT. Any corporation which incorporates, qualifies, or otherwise acquires taxable status within New Jersey must file a CBT return. In general, this includes all domestic corporations.

Motor carriers delivering property into New Jersey are subject to the CBT. Carriers not in compliance may be stopped and held subject to payment of the tax, which is computed according to a field formula. The truck and load may also be impounded until payment is made.