New Jersey imposes various requirements on purchasers doing business in New Jersey. We recommend that you go through the items below to help you with the most frequently asked questions concerning purchasers and sales and use tax issues.

Tax exemption certificates. An exemption certificate may be issued by a purchaser of a nontaxable item. The exemption certificate may be based on the type of transaction (such as a resale exemption) or on the item itself.

Resale exemptions. In New Jersey sales for resale are not subject to tax. The definition of retail sale expressly excludes a sale of tangible personal property for resale by you the purchaser. As a purchaser, you must give a resale certificate (Form ST-3) to the seller in order for the exemption to apply.

Resale exemption certificate. In New Jersey a resale certificate (Form ST-3) must be used for the exemption to apply. The certificate should be signed and indicate the name, address, certificate of authority number of the purchaser, and the basis of exemption. The following requirements must be met in order for a certificate to disclose a proper basis for exemption:

• the certificate must be an official form or reproduction
• the certificate has to be dated and executed according to instructions and complete in all respects
• a proper basis for exemption must be stated
• the vendor has no reason to believe that property purchased is not ordinarily used in the purchaser's business for the purposes disclosed in the certificate
• good faith must be exercised in each transaction (each transaction is a separate claim for exemption if a blanket certificate is accepted)

Blanket resale certificates. Sellers may accept blanket certificates from you as a purchaser if you repeatedly purchase the same type of property or service for processing or resale. However, blanket certificates may not be used to purchase property or services not covered by a blanket certificate. If a seller has not accepted a blanket certificate in good faith, liability for the tax does not shift from the seller to the purchaser.

Purchases from out-of-state vendors. In New Jersey property brought into the state on which a sales or use tax has been paid in another state equal to or in excess of the New Jersey tax is not subject to tax in New Jersey.