New Jersey State Tax
news
Volume 35, Number 2
Summer 2006
A Quarterly Newsletter ISSN 1073-6808
inside
budget legislation .................... 1
nj estate tax return preparation 3
interest rate 10.00% ............... 4
PAMS: building the future ........ 4
tax assessor certificates .............. 5
tax assessors calendar .............. 5
streamlined sales tax ................ 6
criminal enforcement ............... 6
enforcement summary stats ........7
tax briefs ...................................9
current amnesty programs .........9
in our courts ........................... 11
tax calendar ........................... 14
important phone numbers ...... 14
continued on page 2
FY 2007 Budget
Legislation
The following is a list of several re-
cently enacted tax laws related to the
fiscal year 2007 budget. For a com-
plete list of budget-related legisla-
tion visit the Divisions Web site at:
www.state.nj.us/treasury/taxation/
statebudgetbills.shtml
Sales and Use Tax
P.L. 2006, c.44, increased the New
Jersey sales and use tax rate from
6% to 7%. The rate change affects
all retail sales of taxable merchan-
dise or services that take place on
and after July 15, 2006. View the
law at: www.njleg.state.nj.us/2006/
Bills/AL06/44_.PDF
Additional provisions effective Oc-
tober 1, 2006, extend the sales and
use tax to new services, limit some
existing exclusions and exemptions,
and encompass product categories
that have come into being with new
technologies.
Effective July 15, 2006
• The New Jersey sales and use tax
rate increased to 7%.
• Businesses in Urban Enterprise
Zones and Salem county busi-
nesses that are authorized to
charge the 50% reduced rate are
required to charge and collect
sales tax at the rate of 3.5% on
all qualified taxable sales.
• The combined rate for sales sub-
ject to both the New Jersey sales
and use tax and the Atlantic City
luxury tax increased from
12% to 13%.
• Businesses in Wildwood, North
Wildwood, and Wildwood Crest
that are subject to the tourism
sales tax must collect 9% tax on
tourism