St 3 New Jersey PDF Template

The ST-3 New Jersey form is a resale certificate used by purchasers to claim an exemption from sales tax when buying taxable property or services for resale. Sellers must collect sales tax unless they receive a fully completed ST-3 form from the buyer, certifying their eligibility for the exemption. To ensure compliance and avoid potential tax liabilities, it's essential to fill out this form accurately.

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Article Guide

The ST-3 form, also known as the New Jersey Resale Certificate, plays a crucial role in the state's sales tax system. This certificate allows purchasers to buy taxable goods or services without paying sales tax at the point of sale, provided they meet certain conditions. To use this form, a purchaser must hold a valid Certificate of Authority, which indicates their eligibility to collect sales tax. The form requires detailed information, including the purchaser's New Jersey Taxpayer Registration Number, the nature of their business, and a description of the items being purchased. Importantly, the purchaser must certify that the items are being bought for resale or for use in a taxable service. The seller, in turn, is responsible for retaining this certificate for a minimum of four years to protect themselves from potential tax liabilities. The ST-3 form not only streamlines the purchasing process for businesses but also ensures compliance with state tax regulations, making it an essential document for both buyers and sellers in New Jersey.

St 3 New Jersey Preview

ST-3

(3-23)

New Jersey Division of Taxation

Sales Tax

Resale Certicate

Check applicable box:

Single-Purchase Certicate

Blanket Certicate

The seller must collect Sales Tax on the sale of taxable property or services unless the purchaser gives them a fully completed

exemption certicate.

Do not mail this form to the Division of Taxation.

Seller

Name

Address

Street City State ZIP Code

Purchaser

New Jersey Taxpayer Identication Number

Name*

As registered with the New Jersey Division of Taxation

Address*

Street City State ZIP Code

Type of Business*

The purchaser certies that:

(1) They hold a valid Certicate of Authority to collect New Jersey Sales and Use Tax.

(2) They are principally engaged in the sale of (indicate nature of property or service sold):

(3) The property or services being purchased are described as follows:

(4) The property described above is being purchased for (check all boxes that apply):

Resale in its present form.

Resale as converted into or as a component part of a product by the purchaser.

Use in the performance of a taxable service on personal property and will become part of the property being serviced or will later be

transferred to the purchaser of the service in conjunction with the performance of the service.

(5) The services described above are being purchased (check the box that 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 certicate, 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 certicate. The undersigned purchaser hereby swears under the penalties for perjury and false swearing

that all of the information shown in this certicate is true.

Print Name

Authorized Signature*

(Owner, Partner, Corporate O󰀩cer)

Title Date

*Required

This form may be reproduced

Form ST-3 Instructions

Completing the Certicate

To claim an exemption from Sales Tax on the purchase of taxable property or services, the purchaser must provide a fully completed exemption cer-

ticate to the seller. Otherwise, the seller must collect the tax. The purchaser must provide the following information for the exemption certicate to be

considered fully completed:

• Name and address;

• New Jersey taxpayer identication number;

• Type of business;

• Reason(s) for exemption;

• Signature, if using a paper exemption certicate (including fax).

The seller’s name and address are not required for the exemption certicate to be considered fully completed.

Accepting the Certicate

A seller must be registered to accept an exemption certicate. The seller is relieved of liability for collecting Sales Tax on transaction(s) covered by the

certicate as long as the certicate is fully completed and is received within 90 days of the date of sale. The seller is relieved of liability even if the pur-

chaser improperly claimed the exemption, in which case the purchaser will be held liable for nonpayment of the tax.

Accepting the Certicate in an Audit Situation

If the seller either has not obtained an exemption certicate or has obtained an incomplete exemption certicate, 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 certicate from the purchaser taken in good faith, which in an audit situation means the exemption:

• Was statutorily available on the date of the transaction(s); and

• Could apply to the property or service being purchased; and

• Is reasonable for the purchaser’s type of business; or

2. Obtain other information establishing that the transaction(s) was not subject to 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 the 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 informa-

tion was materially false.

Blanket Certicates

A single exemption certicate may cover additional purchases of the same general type of property by the same purchaser with which the seller has a

recurring business relationship. For purposes of this section, a recurring business relationship exists when a period of no more than 12 months elapses

between sales transactions.

To use this form as a blanket certicate, check the applicable box at the top of the form. Each subsequent sales slip or purchase invoice based on the

blanket certicate must be clearly marked with the purchaser’s name, address, and identication number.

Retention of Certicates

Certicates must be retained by the seller for four years from the date of the last sale covered by the certicate. Certicates must be in the physical

possession of the seller and available for inspection. A seller that enters data elements from paper into an electronic format is not required to retain the

paper exemption certicate.

Examples

Proper Use of Form ST-3

1. A retail appliance store owner issues a resale certicate when purchasing appliances from a supplier for resale.

2. A furniture manufacturer issues a resale certicate when purchasing lumber to be used in manufacturing furniture for sale.

3. A service station operator issues a resale certicate when purchasing auto parts to be used in repairing customers’ cars.

Improper Use of Form ST-3

In the examples below, the seller cannot accept a resale certicate and must collect Sales Tax.

1. A lumber dealer cannot accept a resale certicate from a tire dealer that is purchasing lumber for use in altering its premises.

2. A distributor cannot issue a resale certicate on purchases of cleaning supplies and other materials for its own o󰀩ce maintenance, even though it

is in the business of distributing such supplies.

3. A retailer cannot issue a resale certicate on purchases of o󰀩ce equipment for its own use, even though it is in the business of selling o󰀩ce

equipment.

4. A supplier cannot accept a resale certicate from a service station that purchases tools and testing equipment for use in its business.

5. A contractor cannot issue Form ST-3 for purchases of materials and supplies. If the property being worked on belongs to a qualied exempt orga-

nization, a qualied Urban Enterprise Zone business, or a qualied housing sponsor, see Contractor’s Exempt Purchase Certicate (Form ST-13)

and Contractor’s Exempt Purchase Certicate - Urban Enterprise Zone (Form UZ-4).

For more information, see S&U-6, Sales Tax Exemption Administration, which is available at www.nj.gov/treasury/taxation/pdf/pubs/sales/su6.pdf

↓ St 3 New Jersey

File Properties

Fact Name	Details
Purpose	The ST-3 form serves as a Resale Certificate, allowing purchasers to buy taxable property or services without paying sales tax, provided they meet certain criteria.
Exemption Requirement	The seller must collect sales tax unless the purchaser provides a fully completed New Jersey exemption certificate.
Seller's Responsibility	Sellers are required to read and comply with instructions on both sides of the exemption certificate to ensure proper use.
Retention Period	Certificates must be retained by the seller for at least four years from the date of the last sale covered by the certificate.
Validity of Certificate	Registered sellers who accept fully completed exemption certificates within 90 days of the sale are relieved of liability for sales tax on those transactions.
Governing Law	This form is governed by the New Jersey Sales and Use Tax Act, which outlines the rules for tax exemption and resale certificates.
Improper Use Examples	Examples include using the certificate for personal purchases or for items not intended for resale, which would be considered improper use.

Instructions on Utilizing St 3 New Jersey

Filling out the ST-3 New Jersey form is a straightforward process that allows you to claim an exemption from sales tax when purchasing goods or services for resale. Completing this form accurately is essential to ensure that the seller is not required to collect sales tax on your purchase. Here’s how to fill it out step by step.

Start by entering the date at the top of the form.
Write the name of the seller in the designated space.
Fill in the seller's address, including city, state, and ZIP code.
Provide your New Jersey Taxpayer Registration Number in the appropriate box.
Certify that you hold a valid Certificate of Authority to collect New Jersey Sales and Use Tax.
Indicate the nature of your business by describing what you primarily sell.
In the next section, describe the merchandise or services you are purchasing.
Check the applicable boxes to indicate how you will use the purchased merchandise:

For resale in its present form.
For resale as converted into or as a component part of a product.
For use in a taxable service on personal property.

If applicable, check the box indicating how the services are being purchased:

By a seller who will collect tax or resell services.
To be performed on personal property held for sale.

Sign the form, including your name as registered with the New Jersey Division of Taxation.
Provide your address and type of business.
Include your title and ensure that all required fields are filled out.

After completing the form, ensure you keep a copy for your records. The seller will retain the original. This documentation is important for both parties and must be kept for at least four years. Remember, this form is not to be mailed to the Division of Taxation; it’s meant to be handed directly to the seller.

Important Facts about St 3 New Jersey

What is the ST-3 New Jersey form?

The ST-3 form is a Resale Certificate used in New Jersey. It allows a purchaser to buy taxable property or services without paying sales tax, provided they are going to resell the items. The seller must collect the tax unless they receive a fully completed ST-3 form from the purchaser.

Who needs to complete the ST-3 form?

The purchaser must complete the ST-3 form. This includes providing their New Jersey Taxpayer Registration Number, the type of business, and details about the merchandise or services being purchased. The seller should keep this form on file to show they are not liable for collecting sales tax on that transaction.

How long must the seller retain the ST-3 form?

The seller must keep the ST-3 form for at least four years from the date of the last sale covered by the certificate. It should be readily available for inspection during that time.

What happens if the ST-3 form is incomplete?

If the seller does not obtain a fully completed ST-3 form, they may be held liable for the sales tax. However, if they acquire a complete form within 120 days of a request from the Division of Taxation, they may be relieved of that liability.

Can the ST-3 form be used for multiple purchases?

Yes, the ST-3 form can cover additional purchases by the same purchaser of the same type of property. Each subsequent sales slip or invoice must still include the purchaser's name, address, and tax registration number for verification purposes.

Are there any restrictions on using the ST-3 form?

Yes, the ST-3 form cannot be used for items that the purchaser intends to use personally or for non-resale purposes. For instance, a retailer cannot use it for office supplies meant for their own use. Sellers should be cautious and ensure the form is appropriate for the transaction.

Common mistakes

Filling out the ST-3 New Jersey form can be straightforward, but many people make common mistakes that can lead to complications. One frequent error is failing to provide a valid New Jersey Taxpayer Registration Number. This number is essential for the seller to verify the purchaser's tax-exempt status. Without it, the seller may be required to collect sales tax, which defeats the purpose of the exemption certificate.

Another common mistake involves incomplete information regarding the nature of the merchandise or services being purchased. The form asks for specific details about what is being bought and how it will be used. Omitting this information can cause confusion and potentially lead to tax liabilities. It’s crucial to be thorough and accurate when describing the merchandise or services.

Many purchasers also overlook the importance of checking the appropriate boxes regarding the use of the purchased items. The form includes options for resale in its present form or as a component part of another product. Failing to check the correct box can result in the seller being unable to honor the exemption, which could lead to unexpected tax charges.

Additionally, some individuals neglect to sign the form. A signature is not just a formality; it serves as a declaration of the truthfulness of the information provided. Without a signature, the form is incomplete and may be rejected by the seller, leaving the purchaser liable for any applicable taxes.

Lastly, many people forget to keep a copy of the completed ST-3 form for their records. Retaining a copy is essential for both the purchaser and the seller. It ensures that both parties have documentation in case of an audit or any future inquiries regarding the transaction. Proper record-keeping can prevent misunderstandings and protect against potential tax liabilities.

Documents used along the form

When engaging in transactions that involve the New Jersey ST-3 Resale Certificate, several other forms and documents may also be necessary. These documents help ensure compliance with state tax regulations and provide clarity in various sales situations. Below is a list of commonly used forms alongside the ST-3.

ST-4 Exempt Use Certificate: This form is used by purchasers who are buying property or services for an exempt purpose. It allows them to claim an exemption from sales tax, provided they meet specific criteria.
ST-5 Sales Tax Exempt Certificate: This certificate is issued to organizations that are exempt from paying sales tax, such as nonprofit entities. The seller must retain this certificate to validate the exemption.
ST-6 Direct Pay Permit: This document allows certain businesses to pay sales tax directly to the state rather than at the point of sale. It is beneficial for companies that frequently make tax-exempt purchases.
ST-8 Resale Certificate for Motor Vehicle Dealers: Specifically designed for motor vehicle dealers, this form allows them to purchase vehicles for resale without paying sales tax at the time of purchase.
ST-13 Exemption Certificate for Nonprofit Organizations: This form is used by qualifying nonprofit organizations to claim exemption from sales tax on purchases made for their exempt activities.
ST-3C Certificate of Exempt Use: This certificate is utilized when a purchaser is buying items that will be used in a manner that qualifies for exemption from sales tax. It must be completed and retained by the seller.

Understanding these additional forms can help streamline your purchasing processes and ensure compliance with New Jersey tax laws. It is crucial to keep these documents organized and readily available for inspection to avoid potential liabilities.

Similar forms

ST-4 Exempt Use Certificate: This document is used when a buyer purchases items for exempt use rather than resale. Like the ST-3, it requires the buyer to provide information about their business and the nature of the purchase.
ST-5 Exempt Organization Certificate: Nonprofit organizations use this form to claim exemption from sales tax. Similar to the ST-3, it requires the organization to provide proof of their tax-exempt status and details about the purchase.
ST-6 Direct Payment Certificate: This certificate allows buyers to pay sales tax directly to the state instead of the seller. It shares similarities with the ST-3 in that it requires the buyer to provide their tax identification number and details about the transaction.
ST-7 Resale Certificate for Out-of-State Purchasers: Out-of-state buyers use this form to claim a sales tax exemption when purchasing goods for resale in New Jersey. It mirrors the ST-3 by requiring the purchaser to certify their intention to resell the items.
ST-8 Certificate of Exempt Use: This form is for buyers who need to purchase property or services for exempt use, rather than resale. It is similar to the ST-3 as both require the buyer to explain the purpose of the purchase and provide their tax identification number.

Dos and Don'ts

When filling out the ST-3 New Jersey form, there are important guidelines to follow to ensure accuracy and compliance. Here’s a list of things to do and avoid:

Do provide your New Jersey Taxpayer Registration Number accurately.
Do clearly indicate the nature of the merchandise or service you are purchasing.
Do check all applicable boxes regarding how the merchandise or services will be used.
Do ensure that your signature is included, along with your title if applicable.

Don't leave any required fields blank; incomplete forms may not be accepted.
Don't use the certificate for personal purchases or items not intended for resale.
Don't forget to retain a copy of the completed certificate for your records.
Don't mail the form to the Division of Taxation; it should be given to the seller.

Following these guidelines will help ensure that the ST-3 form is filled out correctly and that you remain compliant with New Jersey sales tax regulations.

Misconceptions

Understanding the ST-3 New Jersey form can be challenging, and several misconceptions may lead to confusion. Here are six common misunderstandings about this resale certificate:

Misconception 1: The ST-3 form is only for large businesses.

This is incorrect. Any registered seller in New Jersey can use the ST-3 form, regardless of the size of their business. It is designed for all sellers who need to collect sales tax on taxable property or services.

Misconception 2: The seller must always collect sales tax.

While sellers typically collect sales tax, they are not required to do so if the purchaser provides a fully completed ST-3 form. This form acts as an exemption certificate, relieving the seller from the obligation to collect tax on that transaction.

Misconception 3: The ST-3 form can be used for any purchase.

This is misleading. The ST-3 form is specifically for purchases intended for resale or for use in taxable services. It cannot be used for personal purchases or items not intended for resale.

Misconception 4: Once the ST-3 form is submitted, the seller has no further responsibilities.

In reality, sellers must retain the ST-3 form for at least four years. They should also ensure that the information provided is complete and accurate to avoid potential tax liabilities.

Misconception 5: The ST-3 form can be completed by anyone.

This is not true. Only individuals or entities registered with the New Jersey Division of Taxation can complete the ST-3 form. The purchaser must hold a valid Certificate of Authority to collect sales tax.

Misconception 6: The ST-3 form can be mailed to the Division of Taxation.

This is incorrect. The ST-3 form is not submitted to the Division of Taxation. Instead, it must be completed by the purchaser and given directly to the seller, who retains it for their records.

Key takeaways

When filling out and using the ST-3 New Jersey form, it is essential to understand the following key points:

Purpose of the Form: The ST-3 form serves as a resale certificate, allowing purchasers to buy taxable property or services without paying sales tax, provided they are reselling the items.
Completion Requirements: The purchaser must provide their New Jersey Taxpayer Registration Number, business type, and a detailed description of the merchandise or services being purchased.
Seller's Responsibilities: Sellers are required to retain the completed exemption certificate for at least four years and ensure it is available for inspection.
Liability for Tax: If a purchaser improperly claims an exemption, they will be held liable for any unpaid sales tax, even if the seller accepted the certificate in good faith.
Proper Use Examples: The form is valid when used for purchases intended for resale, such as a retailer buying stock for their store. It should not be used for personal or non-resale purchases.

Understanding these points can help ensure compliance with New Jersey sales tax regulations and facilitate smoother transactions between buyers and sellers.