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Division of Taxation

Notice – Petroleum Products Gross Receipts Tax

In general, the term petroleum products includes refined products such as motor fuel, gasohol, other alcohol blended fuels, diesel fuel, aviation fuel, jet fuel, heating oil, motor oil and other petroleum-based products that are typically used in the internal combustion process or lubrication of motors and other mechanical devices, hydraulics, and as commercial and industrial solvents. These products typically include components such as acid oil, alkylates, aromatic chemicals, asphalt and asphaltic materials, benzene, butadiene, coke, petroleum, fractionation products of crude petroleum, refinery or still oil, liquefied petroleum, greases, hydrocarbon fluid, kerosene, mineral jelly, mineral oils, mineral waxes, naphtha, naphthenic acids, paraffin wax, petroleums, road materials, road oils, and tar or residuum.

However, for purposes of the tax imposed under N.J.S.A. 54:15B-1 et seq., asphaltic materials and polymer grade propylene used in the manufacture of polypropylene are specifically exempt from tax. In addition, home heating oil is exempt from tax.

The Division determined that the following products are exempt from tax because they have lost their petroleum identity: animal feed, anti-freeze, candles, ink, plastics, roofing shingles, and synthetic fibers.

As of November 1, 2016, the Division no longer considers the following types of products (that include petroleum as an ingredient) to be subject to the Petroleum Products Gross Receipts Tax: Baby Lotion, Baby Oil, Body Cream/Lotion, Brass Cleaner, Cold Cream, Cooking Spray, Foot Ointment, Furniture Polish, Hair Care, Lighter Fuel, Lighter Products, Lip Balms, Lipstick, Makeup Remover, Mineral Oil, Mineral Wax, Nail Care/Dryer, Nail Polish Remover, Nail Strengthener/Nourishment, Paraffin Based Hand Wax, Personal Lubricants, Petroleum Jelly, Skin Care Lotion, Wood Polish, and Wood Treatment.

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Last Updated: Tuesday, 04/14/20