Sales Tax State Activity Update - May 2004

Layaway Sales and Service Charges Discussed in New Jersey

In a recently released tax brief by the New Jersey Department of Revenue, layaway payments were considered deposits on a future sale and sales tax is not due on a deposit until actual delivery of the taxable merchandise occurs.

If the sale is cancelled, then there is no taxable transaction. However, if the sale occurs, then all expense elements to the seller excluding transportation costs become part of the taxable receipts.

(NJ State Tax News, Winter 2003 Issue, Released 02/23/2004) 05/04

---

Subscribe to CyberTax News and receive the latest indirect tax news, including rate changes, rule updates, compliance issues, and more, delivered directly to your email.

Email Address