In October 2016, legislation was passed that contained several state and local tax changes. At the time, New Jersey’s Gas Tax was increased by $.23/gallon and the State’s 7% sales tax was reduced to 6.875%. Effective January 1, 2018, the sales tax rate will be reduced again to 6.625%.
Dealerships should ensure that their computers have been programmed to begin charging the lower Sales Tax rate on January 1, 2018.
The new Sales Tax rate is applicable to ALL dealership sales, lease, rental, and service transactions.