Ó£»¨ÊÓƵ

Boats and Other Vessels

The purchase of boats and vessels is subject to Ó£»¨ÊÓƵ Sales Tax under the Ó£»¨ÊÓƵ Sales and Use Tax Act. This act imposes a tax of half the applicable Sales Tax rate, up to a maximum of $20,000, upon the receipts from every retail sale of boats and vessels in Ó£»¨ÊÓƵ. (P.L. 2015, c. 170)

The following apply to vessel transactions and use in this state under N.J.S.A. 54:32B-2, N.J.S.A. 54:32B-8.6, and N.J.S.A. 54:32B-10 of the Sales & Use Tax Act.

• Vessels acquired from a dealer in Ó£»¨ÊÓƵ are subject to Sales & Use Tax.
• Vessel acquired by a resident of this state, including documented vessels, from a dealer outside the Ó£»¨ÊÓƵ are subject to Use Tax at the time of first use in this state.
• Vessels acquired in a casual or non-dealer sale transaction that are subject to registration in Ó£»¨ÊÓƵ are subject to Sales & Use Tax.
• Any vessel not meeting the requirements of the "Head Boat" exemption as defined by N.J.S.A. 54:32B-8.12 is not exempt from the Sales & Use Tax Act.

For additional information on exemptions and the taxability of boats/vessels in Ó£»¨ÊÓƵ, contact the Galloway Regional Information Center 609-415-6420 or the Casual Sales Section Taxation.CasualSales@treas.nj.gov