The ST-3 New Jersey form is a crucial document for sellers and purchasers in New Jersey, designed to facilitate the process of tax exemption on sales of taxable property or services. It serves as a resale certificate, allowing businesses to purchase goods or services without paying sales tax if those items are intended for resale or as a part of a taxable service. For this exemption to apply, the purchaser must provide a fully completed exemption certificate to the seller, who is then relieved from the responsibility of collecting sales tax on the qualified transactions. If you're involved in such transactions, understanding how to properly complete and utilize this form is essential. Click the button below to ensure you're filling out the form accurately.
In New Jersey, the intricacies of sales tax collection and exemption are navigated through various forms, one of which is the ST-3 Resale Certificate. This document plays a pivotal role for sellers and purchasers in the realm of taxable property or services, marking the line between tax liability and exemption. Essentially, it permits businesses holding a valid Certificate of Authority to purchase goods or services without paying sales tax, under the condition that these purchases are for resale purposes. The form requires detailed information from the purchaser, including their New Jersey Taxpayer Registration Number and the nature of the merchandise or services being purchased. Furthermore, it necessitates a declaration that the goods or services are intended for resale, either in their present form or as a component part of a product. It’s not just a fill-and-forget document; it comes with the responsibility of ensuring the certificate is fully completed and retains the burden of compliance with the New Jersey Sales and Use Tax Act. The document stands as a testament to the business's belief that the transaction in question is exempt from sales tax, a claim that is backed by a sworn statement under the penalties of perjury and false swearing. The ST-3 form not only facilitates tax-exempt purchases but also mandates the retention of certificates by the seller for at least four years, ensuring they remain accessible for inspection. The allowances and restrictions outlined in the form, alongside the examples of proper and improper uses, guide both sellers and purchasers in legitimate tax-exempt transactions, making compliance a streamlined yet critical task.
ST-3 (11-21)
The seller must collect the tax on a sale of taxable property or services unless the purchaser gives them a fully completed New Jersey exemption certificate.
State of New Jersey
Division of Taxation
SALES TAX
FORM ST-3
RESALE CERTIFICATE
Purchaser’s New Jersey
Taxpayer Registration Number
To be completed by purchaser and given to and retained by seller. See instructions on back.
Seller should read and comply with the instructions given on both sides of an exemption certificate.
TO
Date
(Name of Seller)
Address
City
State
ZIP
The undersigned certifies that:
(1)They hold a valid Certificate of Authority (number shown above) to collect State of New Jersey Sales and Use Tax.
(2)They are principally engaged in the sale of (indicate nature of merchandise or service sold):
(3)The merchandise or services being herein purchased are described as follows:
(4)The merchandise described in (3) above is being purchased: (check one or more of the blocks which apply)
(a)
(b)
(c)
For resale in its present form.
For resale as converted into or as a component part of a product by the undersigned.
For use in the performance of a taxable service on personal property, where the property which is the subject of this Certificate becomes part of the property being serviced or is later transferred to the purchaser of the service in conjunction with the performance of the service
(5) The services described in (3) above are being purchased: (check the block which applies)
By seller who will either collect tax or will resell services.
To be performed on personal property held for sale.
I, the undersigned purchaser, have read and complied with the instructions and rules promulgated pursuant to the New Jersey Sales and Use Tax Act with respect to the use of the Resale Certificate, and it is my belief that the seller named herein is not required to collect the sales or use tax on the transaction or transactions covered by this Certificate. The undersigned purchaser hereby swears under the penalties for perjury and false swearing that all of the information shown in this Certificate is true.
NAME OF PURCHASER*
(as registered with the New Jersey Division of Taxation)
(Address of Purchaser)*
Type of Business*
(Signature of owner, partner, officer of corporation, etc.)*
(Title)
*Required
MAY BE REPRODUCED
(Front and Back Required)
INSTRUCTIONS FOR USE OF RESALE CERTIFICATES – ST-3
1.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;
•Reason(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.
2.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.
3.Acceptance of an exemption certificate in an audit situation - On and after October 31, 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 transactions, and
(b)could be applicable to the item being purchased, and
(c)is reasonable for the purchaser’s type of business; OR
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.
4.Additional Purchases by Same Purchaser - This certificate will serve to cover additional purchases by the same purchaser of the same general type of property. However, each subsequent sales slip or purchase invoice based on this Certificate must show the purchaser’s name, address and New Jersey, Federal, or out of state registration number for your purpose of verification.
5.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 on or before the 90th day following the date of the transaction to which the certificate relates.
EXAMPLES OF PROPER USE OF RESALE CERTIFICATE
a. A retail household appliance store owner issues a Resale Certificate when purchasing household appliances from a supplier for resale. b. A furniture manufacturer issues a Resale Certificate to cover the purchase of lumber to be used in manufacturing furniture for sale.
c. An automobile service station operator issues a Resale Certificate to cover the purchase of auto parts to be used in repairing customers cars.
EXAMPLES OF IMPROPER USE OF RESALE CERTIFICATE
In the examples below, the seller should not accept Resale Certificates, but should insist upon payment of the sales tax. a. A lumber dealer can not accept a Resale Certificate from a tire dealer who is purchasing lumber for use in altering their premises.
b. A distributor may not issue a Resale Certificate on purchases of cleaning supplies and other materials for their own office maintenance, even though they are in the business of distributing such supplies.
c. A retailer may not issue a Resale certificate on purchases of office equipment for their own use, even though they are in the business of selling office equipment.
d. A supplier can not accept a Resale Certificate from a service station owner who purchases tools and testing equipment for use in their business.
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: Read publication S&U-6 (Sales Tax Exemption Administration).
https://www.state.nj.us/treasury/pdf/pubs/sales/su6.pdf
DO NOT MAIL THIS FORM TO THE DIVISION OF TAXATION
This form is to be completed by purchaser and given to and retained by seller.
Filling out the ST-3 New Jersey form correctly is crucial for businesses engaging in transactions that qualify for a sales tax exemption on the purchase of taxable property or services for resale purposes. This guide walks through the necessary steps to complete this form accurately, ensuring compliance with New Jersey Division of Taxation requirements. Once completed, the form serves as a declaration that the purchase is exempt from sales tax under specified conditions. It's important for both the seller and the purchaser to adhere to the guidelines detailed on the form to avoid potential tax liabilities.
After completing the ST-3 form, make sure to provide it to the seller and retain a copy for your records. Both parties must keep this document readily accessible as it may be required for verification by the New Jersey Division of Taxation for at least four years from the date of the last sale covered by the certificate. Proper completion and retention of this form fulfill your obligations regarding the tax-exempt status of applicable transactions, mitigating the risk of future tax liabilities related to these purchases.
What is the ST-3 Resale Certificate form used for in New Jersey?
The ST-3 Resale Certificate form in New Jersey is used by purchasers to notify sellers that the transaction is exempt from sales tax. This exemption applies when goods or services are purchased for resale, either in their current form or as part of another product. Completing this form correctly means the seller doesn’t need to collect sales tax on the sale, as the responsibility for collecting tax shifts to the time of resale to the final customer.
Who needs to complete the ST-3 Resale Certificate?
The purchaser who is buying goods or services for resale in New Jersey is required to complete the ST-3 Resale Certificate. By completing this form, the purchaser certifies that they are registered with the State of New Jersey to collect sales tax and that the items purchased will be resold in their business.
What information is required on the ST-3 form?
To complete the ST-3 form, the purchaser must provide their New Jersey Taxpayer Registration Number, the nature of merchandise or services sold, a description of the merchandise or services being purchased, the intended use of the purchased items, and the type of business. The form must be signed by an owner, partner, or officer of the company, and all required fields must be filled out for the certificate to be considered valid.
Is there a deadline for accepting the ST-3 form from purchasers?
Yes, sellers must obtain the fully completed exemption certificate within 90 days subsequent to the sale date to be relieved of the liability for the collection of sales tax on the transaction.
Are there any specific retention requirements for the ST-3 form?
Sellers are required to retain the ST-3 forms for a minimum of four years from the date of the last sale covered by the certificate. The retained certificates must be physically possessed by the seller and available for inspection upon request.
Can the ST-3 form be filled out electronically?
Yes, while the purchaser can fill out the ST-3 form on paper, sellers are allowed to enter the data from the paper form into an electronic format. Once this data is entered electronically, sellers aren’t required to keep the physical paper form as long as the electronic information is readily accessible.
What happens if a seller fails to obtain a completed ST-3 form?
If the seller has not obtained a fully completed ST-3 form, they could be held liable for the sales tax on the transaction unless they can obtain the completed form or prove the transaction was tax-exempt within 120 days after an audit request for substantiation of the claimed exemption.
Can an ST-3 form be used for multiple purchases?
Yes, the ST-3 form can cover additional purchases of the same general type of property by the same purchaser. However, each subsequent sale or purchase invoice must include the purchaser’s information for verification purposes.
What are examples of proper and improper use of the ST-3 form?
Proper use of the ST-3 form includes a retail appliance store owner purchasing appliances for resale or a furniture manufacturer buying lumber for manufacturing furniture for sale. Improper use includes a tire dealer using the ST-3 to purchase lumber for altering premises or a retailer buying office equipment for their own use through the business.
Where can sellers or buyers find more information about the ST-3 form?
Additional information about the ST-3 Resale Certificate can be found by reading the publication S&U-6 (Sales Tax Exemption Administration) available on the New Jersey Division of Taxation's website.
Filling out the ST-3 New Jersey form might seem straightforward, but errors can easily occur if not done with careful attention. One common mistake is not providing the Purchaser's New Jersey Taxpayer Registration Number. This is a critical detail that confirms your eligibility for the tax exemption.
Another frequent slip-up is inaccurately describing the nature of the merchandise or services sold. The state requires specific descriptions, so being vague or incorrect can invalidate your exemption claim.
People often overlook the importance of marking the correct purpose for which the merchandise or services are purchased. Whether it's for resale, to be converted into a component part of a product, or for use in a taxable service, each option has implications for your tax responsibilities.
On the certificate, there's a section to indicate if the services are being purchased for resale or to be performed on personal property held for sale. Failure to check the appropriate box, or checking the wrong one, can lead to complications.
The requirement that the purchaser read and comply with the instructions for using the certificate is another area where mistakes happen. Not affirming that you've understood and followed these guidelines can raise questions about the validity of your exemption certificate.
A crucial aspect of this form is the declaration that all information provided is true, under penalty of perjury. Submitting the form without understanding the seriousness of this declaration is a significant error.
In the section that requires the name, address, type of business, and signature of the purchaser, leaving any of these fields incomplete can render the certificate invalid. These details are necessary for the verification of your exemption status.
Many people neglect the instructions on the retention of certificates. Sellers must keep these documents for not less than four years, and failing to do so can lead to problems in the event of an audit.
Understanding the criteria and timing for accepting an exemption certificate during an audit is another area where people falter. It's vital that sellers obtain either a fully completed certificate or other evidence of exemption within the specified timeframe to avoid liability.
Last but not least, misinterpreting the scope of what constitutes eligible purchases under the same certificate can lead to misuse. Only additional purchases of the same general type of property or service covered by the initial certificate qualify, and any misunderstanding here can have tax implications.
When conducting business in New Jersey, particularly for resale purposes, utilizing the ST-3 New Jersey Sales Tax Resale Certificate is crucial. However, this form often travels in the company of several other important documents that facilitate proper compliance with tax regulations and ensure seamless business operations. Understanding these accompanying forms can help businesses navigate the complexities of tax exemption transactions smoothly.
Together, these documents form a web of compliance, ensuring that when a business uses the ST-3 New Jersey Sales Tax Resale Certificate, they are fully prepared to substantiate their claims of sales tax exemption. It is imperative for businesses to understand not only the importance of the ST-3 form but also the broader context of regulatory requirements within which it operates. This knowledge safeguards against potential legal and financial repercussions, fostering a trustworthy business environment.
The Uniform Sales & Use Tax Exemption/Resale Certificate - Multijurisdiction form is quite similar to the ST-3 New Jersey form. Both are utilized by businesses to claim tax exemption on purchases that are not for final use but intended for resale. Essentially, these documents serve as a declaration by the buyer to the seller, specifying that the items purchased will either be resold as they are or will become a part of a product that will then be sold. This similarity lies in their function of facilitating tax-free purchases for resale, aiming to prevent the tax from being applied multiple times up the supply chain.
The Streamlined Sales and Use Tax Agreement Certificate of Exemption mirrors the ST-3 form in its purpose and application. This certificate is used in states that are participants of the Streamlined Sales and Use Tax Agreement to document tax-exempt transactions. Like the ST-3, it requires detailed information including the nature of the buyer's business, the reason for exemption, and a declaration of intent to resell the goods purchased. Both certificates are instrumental in ensuring that sales tax is only applied to the final consumer.
A Reseller Permit issued by various states, such as Washington, shares a common goal with the ST-3 form. These permits are used by businesses to purchase goods without paying sales tax upfront, under the condition that the goods will be resold. The requirement for the buyer to provide their business and tax identification information, similar to the ST-3, ensures that this tax exemption facility is not misused. Reseller permits, like the ST-3, maintain the integrity of tax collection by allowing tax-exempt purchases strictly for reselling purposes.
The California Resale Certificate is another document closely related to the ST-3 form, used by businesses in California to buy items tax-free that are intended for resale. The certificate requires similar declarations about the nature of the purchase and the buyer's intent to resell the items, paralleling the ST-3 form's stipulations. Both forms function under the same premise, avoiding the levying of sales tax at intermediary stages and ensuring it is only collected on the final sale to the end consumer.
The Florida Annual Resale Certificate for Sales Tax closely aligns with the ST-3 New Jersey form in its purpose and use. It enables registered sellers to make tax-exempt purchases or rentals of property and services that will be resold or re-rented as part of their business operations. Similar to the ST-3, the resale certificate in Florida underscores the importance of detailed documentation for tax-exempt transactions, ensuring compliance with tax laws.
The New York Resale Certificate, like the New Jersey ST-3, serves as a means for businesses to purchase goods or services without sales tax when those goods or services are intended for resale. Both documents necessitate that the purchaser provide their business type, reason for exemption, and assurance of their intent to resell, thereby avoiding unauthorized use of the exemption. This parallel function helps maintain a streamlined process for tax-exempt purchases across different states.
Texas Sales and Use Tax Resale Certificate mirrors the ST-3 form's intent by allowing businesses to buy goods or taxable services tax-free, provided they are bought for resale. The detailed information required from the purchaser aims to authenticate the transaction as legitimately tax-exempt. Both the Texas certificate and the ST-3 form exemplify measures taken to ensure that sales tax exemptions are properly applied and enforced.
The Pennsylvania Exemption Certificate is akin to the ST-3 form, facilitating tax-free purchases for resale among other exempt transactions. By requiring detailed information from the purchaser, both certificates seek to validate the legitimacy of tax-exempt claims. They play a crucial role in streamlining tax exemption processes while ensuring compliance with the respective state's taxation laws.
All these documents, although used in different jurisdictions, share a fundamental objective with the ST-3 New Jersey form, which is to enable businesses engaging in the resale of goods and services to purchase these goods and services without incurring an immediate tax burden. They embody the principle that sales tax should be charged only at the point of final sale to the consumer, avoiding the cascading effect of taxation throughout the supply chain.
When filling out the ST-3 New Jersey form, there are several do's and don'ts that one should keep in mind to ensure the form is correctly completed and to avoid any potential issues. Here is a list of things you should and shouldn't do:
When it comes to the New Jersey ST-3 Resale Certificate form, misunderstandings can complicate transactions for both sellers and purchasers. Here are seven common misconceptions about the ST-3 form and the truths behind them.
The truth is, the ST-3 form is specifically designed for businesses to purchase goods or services tax-free that will either be resold in their original form or become a component part of a product to be sold. It's not a blanket exemption for all business purchases.
Actually, the form's validity hinges on the purchaser's details being fully and accurately completed, including the New Jersey Taxpayer Registration Number or other specified identification. The seller's name and address are not considered when determining if an exemption certificate is fully completed.
In contrast to this belief, sellers can enter data from paper certificates into an electronic format and do not need to retain the paper version. Accepting an electronic ST-3 certificate is just as valid as accepting a paper one.
While it’s true the ST-3 certificate can apply to additional purchases of the same general type of property or services, each transaction must still reference the purchaser's name, address, and registration number for verification purposes.
The form is actually intended for internal record-keeping between the purchaser and seller. The seller retains the form for at least four years for audit purposes but does not submit it to the tax authorities.
Sellers who accept a fully completed exemption certificate in good faith within 90 days after the sale are generally relieved of tax collection liability. If misuse by the purchaser is discovered, it is the purchaser who will be held liable for the tax, not the seller.
While it’s important for sellers to act in good faith, the Division of Taxation places the burden of proof on itself to demonstrate that a seller knew or had reason to know that the information provided by the buyer was false at the time of purchase.
Understanding these common misconceptions can help both buyers and sellers navigate the complexities of tax-exempt transactions with more confidence and ensure compliance with New Jersey tax laws.
Equipment Check Out Form - A form used by employees at Sandhills Community College to borrow equipment for off-campus use, requiring details about the borrower, equipment, and loan period.
Training and Standards Forms - It requires detailed educational history, including high school, college, and any continuing education, to assess the applicant's academic background.
Military Dependent Overseas Screening - Commands must thoroughly review and endorse the suitability of their personnel for overseas assignments using this form.