N.J.A.C. 18:24-16.6 - Tax on Gross Receipts

(a) Sellers operating vending machines that dispense tangible personal property, other than food and drink, must report and pay to the State the tax upon the gross receipts from all sales of such items made through such machines, subject to the exemptions set forth in the Sales and Use Tax Act, such as items sold through vending machines for $ 0.25 or less (exempt under N.J.S.A. 54:32B-8.9).

(b) Sellers operating vending machines that dispense food and beverages must report and pay to the State the tax upon vending machine sales as defined in (c) below from all sales of such items made through such machines subject to the exemptions set forth in N.J.A.C. 18:24-16.7(b) and (c).

(c) For purposes of subsection (b) above, taxable vending machine sales means the wholesale price of food and beverage which is 70 percent of the retail vending machine selling price of such food and beverage.

(d) Sellers must report total receipts from all vending machine sales and deductions of all non-taxable items including 30 percent of sales of food and drink.

(e) Example:

Receipts from sales of taxable tangible

$ 1,000

personal property

Receipts from sales of milk

1,000

Receipts from sales of food and beverages

8,000

(other than milk)

Total receipts from all vending machine

$ 10,000

sales

Less deductions:

Milk

$ 1,000

30 percent of receipts from food and

2,400

beverage sales (30 percent x $ 8,000)

Total deductions

3,400

Receipts subject to tax

$ 6,600

Tax due (at 7 percent)

$ 462