sales tax in NJ

Posted by Noon-Air on September 17, 2008, 10:23 pm

> I believe the first sentence refers to central units, mini splits and
> ptacs.
> The second to window units et al and long term (depreciation) tax
> implications. You'll pay sales tax on either.

So what is left? Because that paragraph is part of a whole guidance on
how there is no sales tax on HVAC with the exception of what is
described in that para.

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Here in Mississippi, its all taxed, so it doesn't make any difference. Looks
like its the same in NJ. Just add the sales tax as a seperate line item for
the total and send them their monthly check. nobody ever got screwed over
because they collected too much and sent it in to the state.

Posted by Old and Grunpy on September 19, 2008, 5:08 pm

I am strongly suggesting to you before you attempt no to collect sales tax
consult with tax attorney I was lessening to my NJ license CPA and
I got screwed royally out of $26,000.00 be smart don't care who they are
get tax from them otherwise you will pay for it out of your own packet
with interest and penalties, don't forget that audit gets bonuses out of
that
and believe me NJ uses Gestapo tactics you get three days to come up
with money otherwise warrant is issued for you arrest .
(Also they seize your checking account)
"X" Cascade Environment Co
Tony

> Hi all,
> What does this phrase from the NJ sales tax guidance mean?
> "The purchase and installation of an air conditioner is taxable when
> the unit is placed into an existing space
> or metal casing that is part of a structure. An air conditioner that
> can be removed from its casing by the
> owner is not a capital improvement and remains tangible personal
> property."
> When is an central air conditioner not put into an 'existing space'?
> Every AC unit, brand new or a replacement is put into an existing
> space, not into outer space or something.
> So if we replaced a 20 year old unit with new compressor, blower,
> condenser - are we supposed to pay sales tax?

Posted by HankG on September 23, 2008, 4:58 pm

I just had my 20 yr old system replaced (in NJ). I asked one of the
contractors if his installation price was taxable.

His answer was that the bottom line price (quotation) includes tax and that
the quote would include the statement: "no additional tax due" or similar
words. It did.

Have no fear, the state gets their cut.

HankG (NJ)

Posted by Noon-Air on September 23, 2008, 10:34 pm

>> Hi all,
>> What does this phrase from the NJ sales tax guidance mean?
>> "The purchase and installation of an air conditioner is taxable when
>> the unit is placed into an existing space
>> or metal casing that is part of a structure. An air conditioner that
>> can be removed from its casing by the
>> owner is not a capital improvement and remains tangible personal
>> property."
>> When is an central air conditioner not put into an 'existing space'?
>> Every AC unit, brand new or a replacement is put into an existing
>> space, not into outer space or something.
>> So if we replaced a 20 year old unit with new compressor, blower,
>> condenser - are we supposed to pay sales tax?

> I just had my 20 yr old system replaced (in NJ). I asked one of the
> contractors if his installation price was taxable.
> His answer was that the bottom line price (quotation) includes tax and
> that
> the quote would include the statement: "no additional tax due" or similar
> words. It did.
> Have no fear, the state gets their cut.
> HankG (NJ)

Easiest just to add the tax to the sub total as a seperate line item, then
there is no guess work.

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