ASSEMBLY, No. 2056







By Assemblyman COHEN



An Act concerning calculation of sales tax on casual sales of passenger automobiles, amending P.L.1966, c.30.


    Be It Enacted by the Senate and General Assembly of the State of New Jersey:


    1. Section 19 of P.L.1966, c.30 (C.54:32B-19) is amended to read as follows:

    19. Determination of tax. If a return required by this act is not filed, or if a return when filed is incorrect or insufficient, the amount of tax due shall be determined by the director from such information as may be available; provided however, that notwithstanding any other information available, the receipt from the casual sale of a passenger automobile, as defined pursuant to R.S.39:1-1, shall be the amount shown on the bill of sale. If necessary, the tax may be estimated on the basis of external indices, such as stock on hand, purchases, rental paid, number of rooms, location, scale of rents or charges, comparable rents or charges, type of accommodations and service, number of employees or other factors. Notice of such determination shall be given to the person liable for the collection or payment of the tax. Subject to the provisions of the State Tax Uniform Procedure Law, R.S.54:48-1 et seq., such determination shall finally and irrevocably fix the tax unless the person against whom it is assessed, within 90 days after giving of notice of such determination, shall apply to the director for a hearing, or unless the director of his own motion shall redetermine the same. After such hearing the director shall give notice of his determination to the person against whom the tax is assessed.

(cf: P.L.1992, c.175, s.31).


    2. This act shall take effect immediately.



    This bill clarifies the calculation of sales tax due on the sale of an automobile by a person who is not an automobile dealer. The legislation specifies that amount of sales tax due is based on the purchase price as shown on the bill of sale, and no other information.




Clarifies that purchase price of passenger automobile for calculation of sales tax due is amount on bill of sale.