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Fill Out a Valid St 3 New Jersey Template

The ST-3 New Jersey form, officially referred to as the Sales Tax Form ST-3 Resale Certificate, is crucial for transactions involving the sale of taxable property or services in New Jersey. It serves as a declaration by the purchaser to the seller that the sale is tax-exempt under specific conditions, such as for resale in its present form or as part of a manufactured product. This document must be fully completed and retained by the seller to ensure compliance with the New Jersey Division of Taxation's guidelines and to relieve the seller of tax collection liability on the exempt transactions.

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Fill Out a Valid St 3 New Jersey Template

Article Structure

In navigating the intricate landscape of tax compliance for businesses, understanding the ST-3 New Jersey Resale Certificate Form becomes crucial. This document plays a pivotal role in the transactional dynamics between sellers and purchasers, particularly in the sale of taxable property or services within New Jersey. Essentially, it serves as a declaration by the purchaser to the seller, indicating that the tax on the transaction should not be collected due to intentions of resale or other exempt purposes outlined by the State of New Jersey Division of Taxation. The form mandates that purchasers provide their New Jersey Taxpayer Registration Number alongside detailed information about their business and the nature of the merchandise or services being acquired. Sellers are required to retain these certificates for a minimum of four years, ensuring they are readily available for inspection, which underscores the importance of this document in sales tax exemption compliance. Acceptance of a fully completed exemption certificate within 90 days of the sale relieves sellers from the liability of collecting sales tax, provided the certificate is accepted in good faith. Moreover, the ability to use the ST-3 form for additional purchases of the same property type simplifies ongoing transactions between the same buyer and seller, making compliance a more streamlined process.

Sample - St 3 New Jersey Form

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)

(a)

(b)

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.

➤ PDF

Document Specifications

Fact Name	Detail
Purpose of Form ST-3	The ST-3 form is used in New Jersey for purchasers to claim tax exemption on taxable property or services that are resold or used in a taxable service on personal property.
Governing Law	This form is governed by the New Jersey Sales and Use Tax Act.
Requirements for a Valid Exemption Certificate	A fully completed exemption certificate must be provided to the seller within 90 days of the sale, including the purchaser's name and address, type of business, reason for exemption, and a valid New Jersey tax identification number or equivalent.
Seller's Responsibility	Sellers must retain the exemption certificate for a minimum of four years from the date of the last sale covered by the certificate and have it available for inspection.

Detailed Steps for Using St 3 New Jersey

Filling out the New Jersey ST-3 form, a Resale Certificate, is an important task for business owners who purchase goods or services with the intention to resell or utilize them in a taxable manner. This step-by-step guide is designed to ensure that the form is completed properly to comply with New Jersey's tax laws. By following these directions, business owners can provide their suppliers with the necessary documentation to be exempted from paying sales tax on these purchases.

Start by entering the date of the transaction at the very top of the form.
Input the seller's name, address, city, state, and zip code in the designated area.
Enter your New Jersey Taxpayer Registration Number in the space provided.
Specify the nature of the merchandise or service sold by clearly describing your principal business activity.
Describe the merchandise or services being purchased. Be as specific and detailed as possible to ensure clarity.
Check the appropriate box(es) that best describe how the merchandise will be used:
- For resale in its present form.
- For resale as converted into or as a component part of a product.
- For use in the performance of a taxable service on personal property.
If you are purchasing services, check the correct block to indicate how they will be used:
- By the seller who will either collect tax or will resell services.
- To be performed on personal property held for sale.
Fill in your business’s name, address, and type in the designated areas.
The form must be signed by the owner, partner, officer of the corporation, or any individual authorized to sign this form. Print the title of the signatory next to the signature.
Note at the bottom that the form may be reproduced, which means you can make copies for additional transactions requiring the same information.

After completing the ST-3 form, it's crucial to hand it over to the seller and keep a copy for your records. The seller is responsible for retaining this certificate for at least four years from the date of the last sale covered by the certificate. Remember, this document not only helps to ensure compliance with New Jersey tax laws but also serves as proof of your exemption from sales tax for eligible transactions. It's part of responsible business practices to maintain accurate and up-to-date records of all your exemption certificates.

Learn More on St 3 New Jersey

What is the purpose of the ST-3 New Jersey Resale Certificate?

The ST-3 New Jersey Resale Certificate is designed to allow businesses to purchase goods or services without paying sales tax, under the condition that these purchases will either be resold as is, become a component of another product sold, or be used in a taxable service provided. The form is a declaration by the purchaser to the seller, claiming exemption from sales tax for the specified transactions.

Who needs to complete the ST-3 Form?

The ST-3 Form must be completed by the purchaser of taxable goods or services who intends to resell the goods or use the services in a manner that is exempt from New Jersey sales tax. This includes businesses registered to collect New Jersey Sales and Use Tax, holding a valid Certificate of Authority.

What information is required on the ST-3 Form?

Purchaser’s information: Name, address, and type of business.
New Jersey Taxpayer Registration Number: This is required for businesses registered in New Jersey. For those not registered in NJ, a Federal employer identification number or an out-of-state registration number must be included.
Nature of merchandise or service: Description of the goods or services being purchased.
Reason for exemption: Indication of how the goods or services will be used to qualify for sales tax exemption.
Signature: The form must be signed by an owner, partner, or officer of the corporation. A digital signature is accepted if the form is electronically completed.

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

Sellers are required to keep the completed ST-3 Form on file for a minimum of four years from the date of the last sale covered by the certificate. The form must be physically possessed by the seller and readily available for inspection. This retention requirement ensures that sellers can substantiate their tax-exempt sales during audits or upon request by the New Jersey Division of Taxation.

Common mistakes

Filling out the ST-3 New Jersey form, also known as the Resale Certificate, can often be overwhelming due to its specific requirements and implications. To avoid common errors, here are nine mistakes frequently made when completing this document:

Failing to provide a valid New Jersey Taxpayer Registration Number: This is a critical piece of information that validates the form.
Not indicating the nature of merchandise or service sold: It’s essential to specify what is being sold to ensure compliance with tax-exempt criteria.
Overlooking the detailed description of merchandise or services: Item (3) must be completed thoroughly to identify precisely what is being purchased.
Incorrectly checking the purpose of purchase boxes: The specific reason for the purchase, such as for resale or as part of a taxable service, needs to be accurately marked to qualify for tax exemption.
Leaving the purchaser’s information sections incomplete: Purchaser’s name, address, and type of business must be fully filled out to legitimize the certificate.
Omitting the signature and title: The Resale Certificate is not valid without the signature of the owner, partner, or officer of the corporation, along with their title.
Not retaining the certificate for the required period: Sellers must keep the completed certificates for at least four years for audit purposes.
Misunderstanding the use of the certificate for non-qualifying purchases: The Resale Certificate is often misapplied to purchases not for resale, leading to discrepancies during an audit.
Incorrect belief that submission to the Division of Taxation is required: The form must be completed and retained by the seller, not submitted to the state, a detail sometimes overlooked leading to confusion.

It is paramount to address these areas with attention and accuracy to do justice to the legal and procedural demands of the ST-3 Resale Certificate in New Jersey. Ensuring correctness in these aspects helps in upholding tax compliance and facilitating smoother transactions free of legal hindrances.

Documents used along the form

When engaging in business transactions that qualify for sales tax exemptions in New Jersey, utilizing the Sales Tax Form ST-3, or Resale Certificate, is a critical step for both buyers and sellers. This form is just one among a suite of documents and forms frequently encountered and used in conjunction with it to ensure compliance with New Jersey's tax laws. Understanding these additional forms can greatly ease the process of ensuring transactions are properly documented and exempt from sales tax when applicable.

ST-4 Exempt Use Certificate: Used by purchasers to certify that the property or services purchased will be used for purposes that make them exempt from sales tax according to New Jersey law.
Bulk Sales Notification: Required in the sale of a business or a significant part of its assets to notify the Division of Taxation about the sale, crucial for the buyer to avoid potential tax liabilities from the seller.
ST-5 Exempt Organization Certificate: Allows qualified nonprofit organizations to make tax-exempt purchases in New Jersey.
ST-8 Certificate of Capital Improvement: Used by homeowners or contractors to certify that the purchased services will result in a capital improvement on real property, thereby making the transaction exempt from sales tax.
ST-SST Streamlined Sales and Use Tax Agreement Certificate of Exemption: A multi-state form that can be used by businesses to claim sales tax exemption in New Jersey and other participating states.
Form NJ-REG: Required for businesses to register for tax and employer purposes in New Jersey, this form is often a precursor to applying for sales and use tax exemption certificates.
Annual Resale Certificate for Sales Tax (issued by the state): Issued by the New Jersey Division of Taxation to qualified businesses, allowing them to make tax-exempt purchases for resale during the validity period of the certificate.
Application for Certificate of Authority (NJ-REG): Required to be filed by businesses to obtain a Certificate of Authority to collect sales tax and/or to buy or sell taxable merchandise or services in New Jersey.
Contractors’ Exempt Purchase Certificate (Form ST-13): Used by contractors to certify that materials and supplies are being purchased for use in exempt capital improvement projects or for resale as part of an exempt capital improvement project.

Utilizing these forms accurately and diligently not only ensures compliance with state regulations but also streamlines business operations by correctly managing tax liabilities and exemptions. Familiarity with these documents and their proper use is essential for businesses to navigate the complexities of New Jersey's tax laws effectively.

Similar forms

The Uniform Sales & Use Tax Certificate—Multijurisdiction form is similar to the ST-3 New Jersey form because both serve as exemption certificates that allow businesses to purchase goods or services for resale without paying sales tax at the point of purchase. The main purpose of each form is to certify that the purchaser is entitled to make tax-exempt purchases because the items bought will be resold, incorporated into products for resale, or used in taxable services rendered to customers. However, the Multijurisdiction form can be used in multiple states, indicating which states accept it and any limitations.

The Streamlined Sales Tax Project (SSTP) Exemption Certificate is another document similar to the ST-3 form, designed for use in states that are members of the Streamlined Sales and Use Tax Agreement (SSUTA). Both forms function to document tax-exempt transactions for resale purposes. While the ST-3 is specific to New Jersey, the SSTP certificate streamlines the exemption process across multiple states, reducing the burden on businesses that operate in more than one state by providing a standardized format.

The California Resale Certificate bears resemblance to the ST-3 form, as both are used by retailers and businesses to purchase goods tax-free that will be resold in the course of business. Each form requires the purchaser to provide specific information, such as a tax identification number and a description of the goods or services to be purchased tax-free. The primary difference lies in their jurisdiction, with one applicable specifically within New Jersey and the other in California.

The Florida Annual Resale Certificate for Sales Tax shares similarities with the ST-3 form by allowing businesses to make purchases without paying sales tax when the intent is to resell the purchased item. Both certificates require the purchaser's identifying information and assert the tax-exempt status of the transaction under state law. The Florida certificate, however, is valid for a calendar year, distinguishing it from the transaction-specific ST-3 form used in New Jersey.

The New York State ST-120, Resale Certificate, is like the ST-3 form in its function to exempt businesses from paying sales tax on goods and services intended for resale. Both documents outline the purchaser’s responsibility to collect sales tax when the final retail sale occurs. The similarity lies in the detailed information required from the purchaser validating their eligibility for making tax-exempt purchases, despite being used under different state tax regimes.

The Texas Sales and Use Tax Resale Certificate serves a similar purpose to the New Jersey ST-3, facilitating tax-free purchases of items that will be resold or leased. Each certificate relieves the seller from the responsibility of collecting sales tax, provided the certificate is fully completed and retained. Both establish a framework where accountability for collecting sales tax shifts from the seller to the purchaser once the items are sold at retail.

The Colorado Sales Tax Exemption Certificate parallels the ST-3 form as it is used by businesses to document purchases made without sales tax when the goods are destined for resale. Both forms play a crucial role in the commerce chain, ensuring that sales tax is applied only at the final point of retail sale. While catering to their respective state regulations, they both provide a mechanism for businesses to demonstrate their right to a tax exemption for qualifying transactions.

The Pennsylvania Exemption Certificate (REV-1220) is analogous to New Jersey's ST-3 form, allowing businesses to make tax-exempt purchases of tangible personal property or services that will either be resold or used in a taxable manner specified under state law. Both documents necessitate that the purchaser provide a valid reason for the exemption, backed by appropriate business and tax identification numbers. Though each pertains to its specific state, they function under similar principles governing tax-exempt purchases for resale.

Dos and Don'ts

When it comes to filling out the ST-3 New Jersey Resale Certificate Form, it's important to navigate the process accurately to ensure compliance with state tax regulations. Here are some key dos and don'ts to help guide you through the process:

Do ensure that all the required fields are filled out completely. Missing information can invalidate the certificate.
Do provide your New Jersey Taxpayer Registration Number or, if you're not registered in New Jersey, your Federal employer identification number or your out-of-state registration number. For individual purchasers, including your driver’s license number is necessary.
Do clearly state the nature of your business and the specific reason(s) for claiming the exemption on the purchases.
Do check the applicable boxes with precision to specify whether the merchandise or services are for resale, for converting into a component part of a product, or for use in a taxable service.
Do sign the certificate. A paper exemption certificate requires a physical signature to be considered fully completed.
Do retain a copy of the completed form. Sellers are required to keep the certificate for a period of not less than four years for inspection purposes.

Don't leave any required fields blank. This includes the purchaser's name and address, type of business, and the detailed description of goods or services purchased.
Don't misuse the certificate for personal purchases. The ST-3 form is strictly for items or services intended for resale or those used in taxable services related to the business.
Don't forget to update and re-issue the certificate for additional purchases of the same general type of property by the same purchaser. While the certificate covers multiple purchases, each transaction requires verification of the purchaser’s details.
Don't falsify information on the certificate. Falsifying information can lead to penalties for perjury and false swearing, including the potential for tax liabilities being placed on the purchaser.

Following these guidelines not only ensures compliance with New Jersey’s tax laws but also protects both the seller and purchaser from potential legal issues arising from incorrect use of the ST-3 Resale Certificate.

Misconceptions

Misconceptions about the ST-3 New Jersey Resale Certificate form can create confusion and lead to potential legal issues for businesses. Understanding the facts is crucial for compliance and proper use. Here are seven common misconceptions:

Any purchaser can use the ST-3 form for any transaction. Only purchasers with a valid Certificate of Authority to collect New Jersey Sales and Use Tax, engaged in sales of taxable property or services for resale, may use this form.
The form allows for purchases to be exempt from sales tax under all circumstances. The exemption applies specifically to purchases for resale or for use in producing or servicing goods intended for resale, not for personal use or non-resale business uses.
A verbal or implied exemption is sufficient for tax exemption. Sellers must obtain a fully completed ST-3 form to be relieved of the liability for collecting sales tax. A verbal agreement does not suffice.
The seller's name and address are mandatory for the form to be valid. The key information needed for a valid exemption certificate does not include the seller’s name and address; rather, it focuses on the purchaser’s details and the exemption's nature.
Electronic versions of the ST-3 form are not acceptable. Sellers can accept electronic formats and are not required to retain the paper exemption certificate, provided all required information is obtained and retained electronically.
The ST-3 form covers an unlimited period. The certificate covers transactions for the sale of the same general type of property or service. However, records must be maintained for at least four years from the date of the last sale covered.
Reproduction of the ST-3 form requires special permission. Businesses can reproduce the ST-3 New Jersey Resale Certificate without prior permission from the Division of Taxation, as long as both sides are copied.

Clarifying these misconceptions ensures businesses operate within New Jersey’s tax laws, avoiding penalties and facilitating smooth operations. This guidance is essential for accurate and legal use of the ST-3 Resale Certificate.

Key takeaways

Filling out and using the ST-3 New Jersey form correctly is crucial for businesses to ensure compliance with state tax regulations. Here are key takeaways to remember:

The ST-3 form must be fully completed by the purchaser and then given to and retained by the seller to make a sale of taxable property or services exempt from sales tax.
Sellers are relieved from the liability of collecting and remitting sales tax on transactions if they receive a fully completed exemption certificate within 90 days subsequent to the date of sale.
For the exemption certificate to be considered fully completed, it must include the purchaser’s name and address, type of business, reason for exemption, and the New Jersey tax identification number, or for those not registered in New Jersey, a Federal employer identification number or out-of-state registration number. Individual purchasers should include their driver’s license number.
An exemption certificate holds significance not only at the time of the initial sale but also covers additional purchases of the same general type of property or services by the same purchaser.
Sellers must retain these certificates for at least four years from the date of the last sale covered by the certificate and ensure they are readily available for inspection.
Acceptance of an incomplete exemption certificate can lead to liability for the tax unless the seller obtains a fully completed certificate or other substantiating information within 120 days after being requested by the Division of Taxation.
Sellers should understand that misuse of the exemption certificate, such as accepting it for personal purchases or for items not for resale, can lead to penalties and interest on taxes owed.
The form allows for the reproduction of both sides without prior permission from the Division of Taxation, facilitating ease of use for both parties involved in the transaction.

It is essential for both sellers and purchasers to familiarize themselves with the rules and guidelines outlined in the ST-3 New Jersey form and Sales Tax Exemption Administration publication (S&U-6) to ensure compliance and avoid any potential issues with the New Jersey Division of Taxation.

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