Fillable Form St-3nr - Resale Certificate For Non-New Jersey Sellers (Page 2 of 2) in pdf

INSTRUCTIONS FOR USE OF RESALE CERTIFICATES

FOR NON-NEW JERSEY SELLERS ST-3NR

Registered sellers who accept fully completed exemption certificates within 90 days subsequent to the date of sale are relieved of

liability for the collection and payment of sales tax on the transactions covered by the exemption certificate. The following

information must be obtained from a purchaser in order for the exemption certificate to be fully completed:

•

Purchaser’s name and address;

•

Type of business;

•

Reasons(s) for exemption;

•

Purchaser’s New Jersey tax identification number or, for a purchaser that is not registered in New Jersey, the

Federal employer identification number or out-of-State registration number. Individual purchasers must

include their driver’s license number;

•

If a paper exemption certificate is used (including fax), the signature of the purchaser.

The seller’s name and address are not required and are not considered when determining if an exemption certificate is fully completed.

A seller that enters data elements from paper into an electronic format is not required to retain the paper exemption certificate.

The seller may, therefore, accept this certificate as a basis for exempting sales to the signatory purchaser and is relieved

of liability even if it is determined that the purchaser improperly claimed the exemption. If it is determined that the

purchaser improperly claimed an exemption, the purchaser will be held liable for the nonpayment of the tax.

Retention of Certificates - Certificates must be retained by the seller for a period of not less than four years from the date of the last

sale covered by the certificate. Certificates must be in the physical possession of the seller and available for inspection.

Acceptance of an exemption certificate in an audit situation – On and after October 1, 2011, if the seller either has not obtained

an exemption certificate or the seller has obtained an incomplete exemption certificate, the seller has at least 120 days after the

Division’s request for substantiation of the claimed exemption to either:

1. Obtain a fully completed exemption certificate from the purchaser, taken in good faith, which,

in an audit situation, means that the seller obtain a certificate claiming an exemption that:

(a) was statutorily available on the date of the transaction, and

(b) could be applicable to the item being purchased, and

2. Obtain other information establishing that the transaction was not subject to the tax.

If the seller obtains this information, the seller is relieved of any liability for the tax on the transaction unless it is discovered through

the audit process that the seller had knowledge or had reason to know at the time such information was provided that the information

relating to the exemption claimed was materially false or the seller otherwise knowingly participated in activity intended to

purposefully evade the tax that is properly due on the transaction. The burden is on the Division to establish that the seller had

knowledge or had reason to know at the time the information was provided that the information was materially false.

EXAMPLES OF PROPER USE OF RESALE CERTIFICATE FOR NON-NEW JERSEY SELLERS

(a)

A craftsman registered in Pennsylvania as a retail and wholesale seller of furniture comes to New Jersey to purchase lumber

which he will use in making furniture.

(b) A merchant registered as a retail seller of books in Connecticut purchases books for his inventory from a New Jersey dealer and

sends his employee to pick up the merchandise.

(c)

A computer store owner registered as a retailer in Wisconsin purchases canned software for her inventory while attending a

trade show in New Jersey, and carries it away from the show herself.

EXAMPLES OF IMPROPER USE OF RESALE CERTIFICATE FOR NON-NEW JERSEY SELLERS

(a)

A lumber dealer may not accept an ST-3NR from a contractor who intends to use it in working on his customers’ real property,

because under New Jersey law, contractors are considered to be the retail purchasers of the construction materials that they use.

(b) A bookseller may not accept an ST-3NR from a doctor who is purchasing books for patients to read in her waiting room,

because this would not be a purchase for resale.

(c)

A candy wholesaler may not accept an ST-3NR from a purchaser who shows a New Jersey store address on the form, because

this information would give the seller reason to believe that the purchaser should be registered in New Jersey.

(d) A plant nursery may not accept an ST-3NR from a New York florist who requests delivery of the plants by common carrier to

his New York location, because this would not be a New Jersey sale.

REPRODUCTION OF RESALE CERTIFICATE FORMS:

Private reproduction of both sides of resale certificates may be made without the prior permission of the Division of Taxation.

FOR MORE INFORMATION:

Call the Customer Service Center at: (609) 292-6400. Send an e-mail to: nj.taxation@treas.state.nj.us

Write to: New Jersey Division of Taxation, Information and Publications Branch, PO Box 281, Trenton, NJ 08695-0281.

Form St-3nr - Resale Certificate For Non-New Jersey Sellers Page 2

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