Sales, Use and International Tax Articles

Sales, Use and International Tax Activity Update - May 2010

New Jersey Makes Amusement a Little Less Amusing

The New Jersey Division of Taxation has authorized municipalities to impose a 5% surcharge on each admission charge to a major place of amusement that is subject to the New Jersey sales tax.

Effective April 1, 2010, the surcharge is not applicable to ticket sales that occurred before April 1, 2010, even where those tickets relate to events that will take place after the effective date.

The surcharge must be separately stated on any bill, receipt, invoice, or similar document provided to patrons. The surcharge amount is not included as part of the sales price for purposes of applying sales tax to the admissions charge. The surcharge will be reported and remitted on a monthly basis. The first return covering the period of April 1 through April 30 is due on May 20, 2010. Any valid exemption claimed for purposes of the sales tax also applies to the admissions surcharge.

More details are available on the state of New Jersey Web site.

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