Keeping track of all of your business expenses can be a full-time job for a small business owner, but it is necessary when it comes to accounting for taxes you may owe the state. In New Jersey, when you purchase equipment or supplies for your business, you have to pay sales taxes, but in some cases you may also be responsible for paying use taxes. To better understand whether you owe use taxes, you may need to seek help from a law firm specializing in tax legal services in NJ.
What Are Use Taxes?
In NJ, a use tax may be charged on taxable items or services if you don’t pay sales tax on them, or if the tax you paid was less than the seven percent charged by the state. Use tax is only charged on items you bought outside of the state and then brought into it. So, if you purchased a piece of equipment in Pennsylvania for use in your business in NJ, then you could owe use taxes.
Even if you don’t own a business, you may still be responsible for paying use taxes. If you bought a car in another state, then you may owe use taxes if you didn’t pay the state rate of seven percent on it when you bought the car. If you are confused about paying use taxes for items you bought outside of the state, an attorney offering tax legal services can help you determine if you owe them or not.
Paying Use Taxes
Businesses that owe use taxes to the state will account for these taxes on their state sales tax returns and individuals who owe use taxes will report them by filing a NJ Use Tax Remittance form. A tax legal services lawyer can answer most questions about state use taxes.
