N.J.A.C. 18:18A-5.2 - Propane Dealers

(a) Companies in the business of selling propane for exempt use (such as residential use, nonprofit, or governmental use) shall apply to the Director for a direct payment permit. Upon issuance of a direct payment permit from the Director, propane dealers shall be qualified to report and pay to the Director the tax applicable on their taxable receipts. Such companies would qualify to purchase propane in nontaxable transactions from registered sellers.

(b) The tax rate for propane sold as a motor fuel is $ 0.04 per gallon.

(c) The tax rate for propane that is not sold for use as a motor fuel is 2 3/4 percent upon the gross receipts.