Sales Tax Information
P.L. 2015, c. 170 amends the Sales and Use Tax Act to provide a 50 percent Sales and Use Tax exemption on the sale of new and used boats or other vessels (including motorboats, sailboats, yachts, and cruisers) and caps the amount of Sales and Use Tax so that the most that the State can collect on a particular sale is $20,000. As a result, the Sales and Use Tax rate goes to half of the applicable rate. There is no further reduction of the Sales and Use Tax rate on sales in an Urban Enterprise Zone or in Salem County. The exemption and cap apply to purchases occurring on and after February 1, 2016. Because rental/lease transactions are treated as retail sales under the Sales and Use Tax Act, these changes also apply to rentals and leases of boats or other vessels.
More information is available in the “Commercial Fishing Boats” section of Tax Topic Bulletin S&U-6 , Sales Tax Exemption Administration.