{"id":374989,"date":"2016-03-31T21:35:58","date_gmt":"2016-04-01T02:35:58","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/state\/new-jersey-law\/new-jersey-consumer-tax-laws.html"},"modified":"2018-02-22T14:49:00","modified_gmt":"2018-02-22T19:49:00","slug":"new-jersey-consumer-tax-laws","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/state\/new-jersey-law\/new-jersey-consumer-tax-laws.html","title":{"rendered":"New Jersey Consumer Tax Laws"},"content":{"rendered":"\n
\n \n
\n

New Jersey Consumer Tax Laws<\/h1>\n
\n
\n

Created by FindLaw’s team<\/a> of legal writers and editors<\/i><\/p>\n\n | Last updated\n

\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
\n

This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
\n

The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

Every state collects revenue from a combination of sources, mainly through sales tax and\/or personal income tax. Proceeds from consumer taxes<\/a> are used for education, highways, police, and many other state needs. New Jersey is known as having one of the lowest gasoline taxes in the country, and also collects taxes on liquor, tobacco, and gambling revenue.<\/p>\r\n

Sales taxes are paid directly to the New Jersey Division of Taxation by retailers, who add the cost of the tax at the point of sale.<\/p>\r\n

Use tax refers to the tax that is levied on goods or services purchased tax-free in another state and brought to New Jersey for storage and\/or use. If tax was paid in the state of purchase, but at lesser rate than New Jersey’s rate, then the purchaser must pay the difference. The use tax rate in New Jersey is 7 percent, which is the same as the retail sales tax rate.<\/p>\r\n

New Jersey has one of the highest cigarette tax rates in the nation, at $2,70 per pack of 20. But the state’s alcohol taxes are in line with that of other states. Excise taxes on certain consumer products, such as alcohol and tobacco, are often called "sin taxes," since they typically are meant to discourage certain behaviors. Gasoline tax also is considered an excise tax, but the proceeds are used for maintaining highways.
\r\n<\/p>\r\n

Certain automobile purchases are tax-exempt in New Jersey, including (but not limited to):<\/p>\r\n