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;
• Reasons(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 1, 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 transaction, 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. Common exempt uses of property or services for which the ST-4 is applicable follow.
NOTE: The descriptions are general and do not necessarily cover every exempt use or service or every condition for exemption. Further information is
available from the Division of Taxation.
• Sales of machinery and equipment for use directly and primarily in the production of property by manufacturing, processing, assembling or refining.
N.J.S.A. 54:32B-8.13a.
• Sales of equipment to a telecommunication service provider subject to the jurisdiction of the BPU or the FCC for use directly and primarily in providing
interactive telecommunications services for sale. N.J.S.A. 54:32B-8.13c.
• Sales of tangible personal property for use directly and exclusively in experimental research and development in the laboratory sense. N.J.S.A. 54:32B-
8.14.
• Sales of wrapping materials or non-returnable containers for use in the delivery of tangible personal property or sales of containers for use in a farming
enterprise. N.J.S.A. 54:32B-8.15.
• Sales of busses to regulated bus companies for public passenger transportation or to carriers for use in school children transportation services. N.J.S.A.
54:32B-8.28.
• Sales of equipment for use directly and primarily in the production department of a newspaper plant or for use in the production of property for sale by
a commercial printer. N.J.S.A. 54:32B-8.29.
• Sales of advertising material to be published in a newspaper. N.J.S.A. 54:32B-8.30.
• Sales of aircraft or repair services to an “air carrier,” and repairs to certain business aircraft, including machinery or equipment installed on such.
N.J.S.A. 54:32B-8.35.
• Sales of equipment used exclusively to sort and prepare solid waste for recycling or in recycling (does not include motor vehicles). N.J.S.A. 54:32B-
8.36.
• Sales of printed advertising materials for out-of-state distribution and sales of direct-mail processing services rendered in connection with the
distribution of such materials to out-of-state recipients. N.J.S.A. 54:32B-8.39.
• Sales of commercial trucks, truck tractors and semi-trailers which are properly registered and 1) have a gross vehicle weight rating in excess of 26,000
pounds; or 2) are operated actively and exclusively for the carriage of interstate freight under a certificate or permit issued by the Interstate Commerce
Commission; or 3) are registered as a farm vehicle under the Motor Vehicle Statute (N.J.S.A. 39:3-24 and 25) and have a gross vehicle weight rating
in excess of 18,000 pounds. N.J.S.A. 54:32B-8.43.
INSTRUCTIONS FOR USE OF EXEMPT USE CERTIFICATES - ST-4 (09-16)
