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Division of Taxation

Important Notice to Limousine Dealers and Repairers

The New Jersey Sales and Use Tax Act was recently amended to include an exemption for the sale of limousine, to a person licensed by the New Jersey Division of Motor Vehicles. A licensee must obtain a certificate of compliance from the municipality where the licensee resides. (N.J.S.A. 48:16-17)

The sales and use tax exemption also applies to charges for repair services to limousines, including replacement parts. A "limousine" is defined as 1) a motor vehicle registered under the provisions of N.J.S.A. 39:3-19.5, or registered as a limousine under the laws of another state; and 2) used exclusively in the business of carrying passengers for hire to provide prearranged passenger transportation at a premium fare on a dedicated, nonscheduled, charter basis, that is not conducted on a regular route and with a seating capacity of no more than 14 passengers, excluding the driver. See N.J.S.A. 54:32B-8.52

For purposes of the exemption, a limousine does not include any taxicab, hotel or airport shuttle or bus, or bus used solely to transport children or teachers to and from school. It also does not include any vehicle owned and operated without charge by a business entity for its own purposes. In order to document the applicability of the exemption for the purchase of the limousine, the customer must provide a copy of the license to operate a limousine service and the vehicle must be registered as a limousine at the time of closing the sale transaction. An Exempt Use Certificate (ST-4) must also be provided to the motor vehicle dealer.

In order to document the applicability of the exemption for parts and repair service, the purchaser must complete an Exempt Use Certificate (ST-4), citing the limousine exemption. N.J.S.A. 54:32B-8.52.

In addition, the motor vehicle must be registered as a limousine in New Jersey or another state. The service provider should confirm that the vehicle has "Limousine" license plates. 8/01

NOTE: Effective May 1, 2017, limousine transportation services are not subject to New Jersey Sales and Use Tax. For more information, see Notice to Limousine Operators.

Last Updated: Thursday, 02/20/20