*On December 8, 2022 New Jersey issued Publication ANJ-14 addressing the tax treatment of sign fabricators or installers. The sales tax rules applicable to sign vendors changed on October 1, 2022 as the result of legislation.
New Jersey passed legislation that changes the sales tax rules for sign fabricators and vendors. The new law, effective October 1, 2022, allows sign fabricators and installers to purchase signs and materials exempt as sales for resale. In addition, the law will require that the vendor bill the customer sales tax on the sale of the sign and the installation charges. Prior to effective date of the law change, sign vendors were subject to the state’s rules on contracting and capital improvements. The new law clarifies that the sale and installation of signs are taxable. The exemption for installation charges, under the capital improvement rules, will no longer apply. For more information on New Jersey’s tax changes applicable to sign vendors, visit the New Jersey Division of Taxation website here.
If you have questions on New Jersey’s sales tax change or other SALT matters, please contact the HBK SALT Advisory Group at hbksalt@hbkcpa.com.
