All retail sales of natural gas (*) delivered in New Jersey to non-exempt customers must include the 6.625% New Jersey Sales Tax. The law requires that the Sales Tax be included in the customer's rate.
Charges for utility service (**) provided and usually billed by New Jersey's public utility energy companies also are subject to the 6.625% New Jersey Sales Tax. (These charges have been fully subject to New Jersey Sales Tax since January 1, 1998.) The law also requires that the 6.625% Sales Tax on these transportation charges be included in the customer's rate by the billing company. The vendor can’t state the tax as a separate line item on the bill.
The exemption for purchases of natural gas and utility service by the following customer classes remains in effect:
REMINDER: There is no exemption available for purchases of natural gas and utility service by state and local governments, qualified Urban Enterprise Zone businesses, and qualified exempt organizations such as schools, churches, nursing homes, etc. There is also no exemption for purchases of natural gas and utility service for use in the manufacturing process.
If you have any questions, please contact Customer Service Center at 609-292-6400.
(*) Natural Gas means any gaseous fuel distributed through a pipeline system.
(**) Utility service means the transportation or transmission of natural gas or electricity by means of mains, wires, lines or pipes, to users or customers.