New Jersey – Exemption for Commercial Gas

SALT Report 1596 – The New Jersey Division of Taxation issued guidance regarding the taxability of commercial gasses specifically oxygen, acetylene, argon, mixes containing argon, and shielding gases used in the welding process.
Generally, New Jersey imposes tax on sales of tangible personal property which is defined as “personal property that can be seen, weighed, measured, felt or touched, or that is any other manner perceptible to the senses.”  Under those guidelines, the commercial gasses mentioned are considered tangible personal property and taxable.
However, N.J.S.A. 54:32B-8.7 provides an exemption for “gas other than natural gas, water, steam, or fuel delivered to consumers through mains, lines, pipes, or in containers or bulk.”  Accordingly, sales of commercial gases when delivered in such a manner qualify for the exemption from sales tax.
To claim the exemption, taxpayer’s must provide their supplier with an Exempt Use Certificate Form ST-4.
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