Sales and Use Tax: Effective January 1, 2018, New Jersey’s general 6.875% sales and use tax will be reduced to 6.625%. In addition, other specific state sales and use tax rates will also be decreased.
The new rates are as follows:
- Atlantic City luxury tax:
- 12.625% – on sales other than alcoholic beverages by the drink
- 9.625% – on alcoholic beverages that are sold by the drink
- Boat and other vessels sales tax – 3.3125%
- Cape May County tourism tax – 8.625% (Note, this rate is in addition to the 1.85% tourism assessment and the 3.15% state occupancy fee on hotel occupancies)
- Salem County sales tax – 3.3125%
- Urban Enterprise Zone sales tax – 3.3125%
New Jersey’s estate tax is repealed and will not be imposed on transfers of estates of resident decedents dying on or after January 1, 2018. However, the state’s inheritance tax levied on certain estates of resident and nonresident decedents remains unchanged.
If you have any questions regarding these New Jersey law changes, please contact Alan Goldenberg, Senior Manager of State and Local Taxation and Tax Controversy, at firstname.lastname@example.org or 212-897-6421, or your Friedman LLP tax professional.