54:32B-11 Certain uses of property exempt from tax.
11.The following uses of property shall not be subject to the compensating use tax imposed under this act:
(1)In respect to the use of property used by the purchaser in this State prior to July 1, 1966.
(2)In respect to the use of property purchased by the user while a nonresident of this State, except in the case of tangible personal property which the user, in the performance of a contract, incorporates into real property located in the State. A person while engaged in any manner in carrying on in this State any employment, trade, business or profession, not entirely in interstate or foreign commerce, shall not be deemed a nonresident with respect to the use in this State of property in such employment, trade, business or profession.
(3)In respect to the use of property or services upon the sale of which the purchaser would be expressly exempt from the taxes imposed under subsection (a) or (b) of section 3.
(4)In respect to the use of property which is converted into or becomes a component part of a product produced for sale or for market sampling by the purchaser.
(5)In respect to the use of paper in the application of newspapers and periodicals.
(6)In respect to the use of property or services to the extent that a retail sales or use tax was legally due and paid thereon, without any right to a refund or credit thereof, to any other State or jurisdiction within any other state but only when it is shown that such other State or jurisdiction allows a corresponding exemption with respect to the sale or use of tangible personal property or services upon which such a sales tax or compensating use tax was paid to this State. To the extent that the tax imposed by this act is at a higher rate than the rate of tax in the first taxing jurisdiction, this exemption shall be inapplicable and the tax imposed by section 6 of this act shall apply to the extent of the difference in such rates.
(7)In respect to the use of natural gas by an eligible person, other than a co-generation facility, as defined in section 34 of P.L.1997, c.162 (C.54:32B-14.1), up to the base level of volume as defined in section 34 of P.L.1997, c.162, but only as long as the eligible person remains at the same physical site that was occupied on December 31, 1995.
L.1966,c.30,s.11; amended 1966, c.53, s.6; 1966, c.132, s.3; 1989, c.123, s.5; 1997, c.162, s.28; 2005, c.126, s.19.
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Last modified: October 11, 2016