Lessee relocates to New Jersey from a state where tax is paid monthly on the lease payment, is tax now calculated on the remaining term of the lease?
Yes. When leased property is relocated into New Jersey, the lease is subject to tax based on the remaining lease payments. If the lease was entered into prior to 10/1/05, the prior law applies and tax is due up front from the lessor, based on the total of the lease payments remaining. If the lease was entered into on or after 10/1/05, the new law applies and New Jersey tax must be collected from the lessee, based on the remaining lease payments, but it may be remitted with each periodic payment. (For leased property moving into New Jersey, the tax payment is not accelerated because the provision in the law regarding accelerating the tax payment is only applicable when the leased property is delivered to the lessee in this state.
Related Questions
- A lease contract with a New York lessee (sales tax accelerated and paid at lease inception), lessee relocates to New Jersey on or after 10/1/05. What amount of tax is due if any?
- Lessee relocates to New Jersey from a state where tax is paid monthly on the lease payment, is tax now calculated on the remaining term of the lease?
- What state or local tax payments can be paid through the Chase Tax Payment Service?
