Division of TaxationResident Service Members: If you are a resident service member, stationed out-of-State, and buy a car outside of Ó£»¨ÊÓƵ, but wish to title the vehicle in Ó£»¨ÊÓƵ, you may defer payment of Sales Tax until the vehicle is brought to Ó£»¨ÊÓƵ. You must first complete a Military Sales Tax Deferment Application (Form MD-1), have it notarized, and mail it to the address on the application. Once we receive your application and approve it, we will send you a Letter of Deferment. You must present this letter at the time of titling. If the Letter of Deferment is not received, Sales Tax must be paid. If you already have a deferment for a motor vehicle, you must pay the Sales Tax on that vehicle, or provide proof that you no longer own it, before we can issue a deferment for this request. Only one vehicle can be deferred at a time.
Disabled Veterans: If you are a disabled veteran and received funds from the U.S. Department of Veterans Affairs (VA) or the Ó£»¨ÊÓƵ Department of Military and Veterans Affairs (NJDVA) to purchase a car, the amount received for the vehicle is not subject to Sales Tax. The exemption is only applicable if the funds for the vehicle purchase came directly from the VA/NJDVA or the VA/NJDVA provides a loan. The funds received must equal the total purchase price of the vehicle for it to be totally exempt. The payment for the vehicle can be a combination of personal funds and funds received from the VA/NJDVA. Any amount that you pay out of pocket, towards the purchase of the vehicle, is subject to Sales Tax.