sales tax in NJ


Hi all,
What does this phrase from the NJ sales tax guidance mean?
"The purchase and installation of an air conditioner is taxable when the unit is placed into an existing space or metal casing that is part of a structure. An air conditioner that can be removed from its casing by the owner is not a capital improvement and remains tangible personal property."
When is an central air conditioner not put into an 'existing space'? Every AC unit, brand new or a replacement is put into an existing space, not into outer space or something.
So if we replaced a 20 year old unit with new compressor, blower, condenser - are we supposed to pay sales tax?
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loch wrote:

Oh yea. Sales tax is due on your cost.
--
Zyp



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Take it from first hand experience with States NY and NJ any maintenance regardless of type is subject to sales tax All material that is not resold by your customer is subject to sales tax One example if you purchase let say 40 pieces of two x four and you use 20 to make work bench the other 20 you have use in new construction project, 20 that you have use for bench are taxi able and the other 20 are exempt from tax if is new construction. that will same applied to any tread regardless. This is explanation I was giving and I am still fighting State of NJ from three years ago, the only thing that so far is exempt from sale's tax is tolls you pay for and you pas it on to customer. Good luck Tony-S

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I believe the first sentence refers to central units, mini splits and ptacs. The second to window units et al and long term (depreciation) tax implications. You'll pay sales tax on either.
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So what is left? Because that paragraph is part of a whole guidance on how there is no sales tax on HVAC with the exception of what is described in that para.
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So what is left? Because that paragraph is part of a whole guidance on how there is no sales tax on HVAC with the exception of what is described in that para.
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Here in Mississippi, its all taxed, so it doesn't make any difference. Looks like its the same in NJ. Just add the sales tax as a seperate line item for the total and send them their monthly check. nobody ever got screwed over because they collected too much and sent it in to the state.
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I am strongly suggesting to you before you attempt no to collect sales tax consult with tax attorney I was lessening to my NJ license CPA and I got screwed royally out of $26,000.00 be smart don't care who they are get tax from them otherwise you will pay for it out of your own packet with interest and penalties, don't forget that audit gets bonuses out of that and believe me NJ uses Gestapo tactics you get three days to come up with money otherwise warrant is issued for you arrest . (Also they seize your checking account) "X" Cascade Environment Co Tony

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I just had my 20 yr old system replaced (in NJ). I asked one of the contractors if his installation price was taxable.
His answer was that the bottom line price (quotation) includes tax and that the quote would include the statement: "no additional tax due" or similar words. It did.
Have no fear, the state gets their cut.
HankG (NJ)
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Easiest just to add the tax to the sub total as a seperate line item, then there is no guess work.
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