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Although a company acted as an agent for two hospitals, for the purchase of cleaning supplies and paper goods, it did not qualify for a derivative exemption because the relationships it had with the hospitals were not master-servant in nature. (New Jersey Tax Court. No. 001793-01, August 13, 2003)


The New Jersey Division of Taxation has recently implemented legislation allowing businesses to advertise a vendor's payment of New Jersey sales tax for the customer in particular transactions. The advertisement must indicate that the vendor paid the tax for the customer and must not imply that the sale was not subject to tax. Sales receipts or invoices for these transactions must show the New Jersey sales tax was paid by the vendor. Also, the tax must be reported and remitted as sales tax and not use tax. (Notice to Businesses: "We Pay the Tax" Days Authorized, New Jersey Division of Taxation, May 5, 2003)


Natural Gas customers in New Jersey will no longer be able to participate in the Direct Payment Permit Program, as it expires December 31, 2002. Beginning January 1, 2003, all retail sales of natural gas delivered in New Jersey must include the 6% sales tax in the customer's rate. The tax must not be separately stated on the customer's bill. The 2002 Annual Sales Tax-Energy Return (ST-18EN) will be the final return filed and the first of which will be due February 20, 2003. (Division of Taxation, NJ, Notice to all natural gas vendors, October 31, 2002)



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