N.J.A.C. 18:24-37.10 - Purchases or Reimbursement of Property by Medicaid or Medicare

(a) Direct purchases by the Federal government are exempt from tax. See N.J.S.A. 54:32B-9(a). For example, if the Federal government (for example, Medicaid or Medicare) is directly purchasing property, no tax is due, regardless of whether or not the property meets the N.J.S.A. 54:32B-8.1 exemption.

(b) The purchase of property reimbursed by the Federal government (for example, Medicaid or Medicare) is not exempt under N.J.S.A. 54:32B-9(a). The property is subject to tax unless the property meets N.J.S.A. 54:32B-8.1.