With fuel surcharges becoming more common, New Jersey has issued a notice concerning their application of sales tax. Retail sales of motor fuels are not subject to sales tax. The definition of “sales price” set forth in N.J.S.A. 54:32B-2(oo)(1) includes “The cost of materials used, labor or service cost, interest, losses, all costs of transportation to the seller, all taxes imposed on the seller, and any other expense of the seller;…” Therefore, when this expense is passed along to the customer as a result of performing a service or selling a product, it should be included in the sale price. The taxability of the fuel surcharge will follow the taxability of the service or product being sold regardless of whether the surcharge is separately stated. (Notice, New Jersey Division of Taxation, August 7, 2008)