Ó£»¨ÊÓƵ

Natural Gas Vendors

All retail sales of natural gas (*) delivered in Ó£»¨ÊÓƵ to non-exempt customers must include the 6.625% Ó£»¨ÊÓƵ Sales Tax. The law requires that the Sales Tax be included in the customer's rate.

Charges for utility service (**) provided and usually billed by Ó£»¨ÊÓƵ's public utility energy companies also are subject to the 6.625% Ó£»¨ÊÓƵ Sales Tax. (These charges have been fully subject to Ó£»¨ÊÓƵ Sales Tax since January 1, 1998.) The law also requires that the 6.625% Sales Tax on these transportation charges be included in the customer's rate by the billing company. The vendor can't state the tax as a separate line item on the bill.

The exemption for purchases of natural gas and utility service by the following customer classes remains in effect:

1. Utility corporations or persons that were subject to the provisions of P.L.1940, c. 4 (N.J.S.A. 54:30A-16 et seq.) as of April 1, 1997, or were formerly or are currently subject to the provisions of P.L.1940, c. 5 (N.J.S.A. 54:30A-49 et seq.). Exempt Use Certificate (ST-4) must be provided to vendor.
2. Co-generators in operation, or which filed an application for an operating permit or a construction permit and a certificate of operation in order to comply with air quality standards under P.L.1954, c. 212 (C.26: 2C-1 et seq.) with the Ó£»¨ÊÓƵ Department of Environmental Protection, on or before March 10, 1997. [Exempt Use Certificate (ST-4) must be provided to vendor]
3. Special contract customers for which a customer-specific tax classification was approved by a written order of the Ó£»¨ÊÓƵ Board of Public Utilities prior to January 1, 1998.
4. Agencies or instrumentalities of the federal government.
5. International organizations of which the United States of America is a member.
6. Cemetery companies, pursuant to N.J.S.A 8A: 5-10. Exempt Use Certificate (ST-4) must be provided to vendor.
7. Amtrak (National Railroad Passenger Corporation).
8. Limited Dividend Housing Corporations organized under N.J.S.A. 55:16-1 et seq., for use at the qualified housing project. Exempt Use Certificate (ST-4) must be provided to vendor.
9. Ó£»¨ÊÓƵ Transit Corporation and any wholly owned business corporation or other related entity including Ó£»¨ÊÓƵ Transit Rail Operations, Inc. and Ó£»¨ÊÓƵ Transit Bus Operations, Inc. (N.J.S.A. 5.27:27-4).

REMINDER: There is no exemption available for purchases of natural gas and utility service by state and local governments, qualified Urban Enterprise Zone businesses, and qualified exempt organizations such as schools, churches, nursing homes, etc. There is also no exemption for purchases of natural gas and utility service for use in the manufacturing process.