STATE OF NEW JERSEY REQUIRES PARKING TAX

Per the State of New Jersey's new tax law as of October 1, 2006, educational institutions are now required to impose a sales tax on parking, storing or garaging a motor vehicle for commuting students.  Residential students, faculty and staff are excluded from the sales tax.

Resident Students

Residential students are not charged a parking sales tax.  Per the state regulations, residents are exempt because residential parking means parking provided to the occupants of a residence who park on the same premises that constitutes their primary residence.  Residence is defined as a single family home, a duplex, a condominium unit, cooperative unit, a townhouse unit, a school dormitory, an apartment or a mobile home used by a person or persons as a place of primary residence or abode.  Thus, resident students living on campus are deemed residents, so parking fees charged by the school are not subject to sales tax.

Commuter Students

Commuter students' primary residences are off campus.  Therefore, this cohort of students are not exempt from the parking sales tax per the state guidelines.  Thus, following state regulations, The Office of Parking Services will charge a separate parking sales tax to commuter students.

Employee Parking

The sales tax applies to the sale of parking but does not apply to the sale of employee parking when provided by an employer, or when provided at a facility owned or operated by the employer.

Sales Tax Included in Price

The Sales and Use Tax Law requires that sales tax be separately stated and charged to purchasers of taxable goods and services.

The rules and regulations for the new parking tax law are under the Division of New Jersey Treasury and Taxation.