Form ST-8 "Certificate of Exempt - Capital Improvement" - New Jersey

What Is Form ST-8?

This is a legal form that was released by the New Jersey Department of the Treasury - a government authority operating within New Jersey. As of today, no separate filing guidelines for the form are provided by the issuing department.

Form Details:

  • Released on March 1, 2017;
  • The latest edition provided by the New Jersey Department of the Treasury;
  • Easy to use and ready to print;
  • Quick to customize;
  • Compatible with most PDF-viewing applications;
  • Fill out the form in our online filing application.

Download a printable version of Form ST-8 by clicking the link below or browse more documents and templates provided by the New Jersey Department of the Treasury.

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Download Form ST-8 "Certificate of Exempt - Capital Improvement" - New Jersey

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ST-8
State of New Jersey
(03-17)
DIVISION OF TAXATION
To be completed by both owner of
A registered New Jersey contractor
SALES TAX
real property and contractor, and
must collect the tax on the amount
retained
by
contractor.
Read
charged for labor and services under
FORM ST-8
instructions on back of this certifi-
the contract unless the owner gives
cate. Do not send this form to the
him a fully completed Certificate of
Division of Taxation.
Exempt Capital Improvement.
CERTIFICATE OF EXEMPT
CAPITAL IMPROVEMENT
MAY BE ISSUED ONLY BY THE OWNER OF THE REAL PROPERTY
MAY NOT BE ISSUED FOR THE PURCHASE OF MATERIALS
_______________________________________________________________________________________________________________
(Name of Contractor)
_______________________________________________________________________________________________________________
(Address of Contractor)
_______________________________________________________________________________________________________________
(Contractor’s New Jersey Certificate of Authority Number)
THE FOLLOWING INFORMATION MUST BE FURNISHED:
*The nature of the contract is as follows (describe the exempt capital improvement to be made):______________________
__________________________________________________________________________________________________
__________________________________________________________________________________________________
__________________________________________________________________________________________________
__________________________________________________________________________________________________
The address or location where work is to be performed: _____________________________________________________
__________________________________________________________________________________________________
TOTAL AMOUNT OF CONTRACT $ ____________________________________________________________________
The undersigned hereby certifies that he is not required to pay sales and use tax with respect to charges for installation of
tangible personal property, because the performance of the contract will result in an exempt capital improvement to real prop-
erty. The undersigned purchaser hereby affirms (under the penalties for perjury and false swearing) that all of the informa-
tion shown in this Certificate is true.
PROPERTY OWNER’S SIGNATURE
CONTRACTOR’S CERTIFICATION
I certify that all sales and use tax due has been or will be paid by
_____________________________________________________
the undersigned on purchases of materials incorporated or con-
(Name of owner of real property)*
sumed in the performance of the contract described herein.
_____________________________________________________
(Address of owner of real property)*
By __________________________________________________
_____________________________________________________
(Signature of Contractor)
(Date)
_____________________________________________________
(Signature of owner, partner, officer of corporation, etc.)*
(Date)
Any person making representations on this certificate which are willfully false may be subject to such penalties as
may be provided for by law.
*Required
REPRODUCTION OF CERTIFICATE OF EXEMPT CAPITAL IMPROVEMENT FORMS: Private reproduction of both sides of
the Exempt Capital Improvement Certificates may be made without the prior permission of the Division of Taxation.
ST-8
State of New Jersey
(03-17)
DIVISION OF TAXATION
To be completed by both owner of
A registered New Jersey contractor
SALES TAX
real property and contractor, and
must collect the tax on the amount
retained
by
contractor.
Read
charged for labor and services under
FORM ST-8
instructions on back of this certifi-
the contract unless the owner gives
cate. Do not send this form to the
him a fully completed Certificate of
Division of Taxation.
Exempt Capital Improvement.
CERTIFICATE OF EXEMPT
CAPITAL IMPROVEMENT
MAY BE ISSUED ONLY BY THE OWNER OF THE REAL PROPERTY
MAY NOT BE ISSUED FOR THE PURCHASE OF MATERIALS
_______________________________________________________________________________________________________________
(Name of Contractor)
_______________________________________________________________________________________________________________
(Address of Contractor)
_______________________________________________________________________________________________________________
(Contractor’s New Jersey Certificate of Authority Number)
THE FOLLOWING INFORMATION MUST BE FURNISHED:
*The nature of the contract is as follows (describe the exempt capital improvement to be made):______________________
__________________________________________________________________________________________________
__________________________________________________________________________________________________
__________________________________________________________________________________________________
__________________________________________________________________________________________________
The address or location where work is to be performed: _____________________________________________________
__________________________________________________________________________________________________
TOTAL AMOUNT OF CONTRACT $ ____________________________________________________________________
The undersigned hereby certifies that he is not required to pay sales and use tax with respect to charges for installation of
tangible personal property, because the performance of the contract will result in an exempt capital improvement to real prop-
erty. The undersigned purchaser hereby affirms (under the penalties for perjury and false swearing) that all of the informa-
tion shown in this Certificate is true.
PROPERTY OWNER’S SIGNATURE
CONTRACTOR’S CERTIFICATION
I certify that all sales and use tax due has been or will be paid by
_____________________________________________________
the undersigned on purchases of materials incorporated or con-
(Name of owner of real property)*
sumed in the performance of the contract described herein.
_____________________________________________________
(Address of owner of real property)*
By __________________________________________________
_____________________________________________________
(Signature of Contractor)
(Date)
_____________________________________________________
(Signature of owner, partner, officer of corporation, etc.)*
(Date)
Any person making representations on this certificate which are willfully false may be subject to such penalties as
may be provided for by law.
*Required
REPRODUCTION OF CERTIFICATE OF EXEMPT CAPITAL IMPROVEMENT FORMS: Private reproduction of both sides of
the Exempt Capital Improvement Certificates may be made without the prior permission of the Division of Taxation.
INSTRUCTIONS
TO THE PROPERTY OWNER: In cases where the contractor performs work which results in an exempt capital improvement to your house or land
(real property), he may NOT charge you any sales tax if you issue to him a fully completed Certificate of Exempt Capital Improvement (Form ST-8).
It is important to distinguish between an exempt capital improvement and a taxable capital improvement, repair or installation. If the fulfillment of a
contract only maintains the existing value of the property, it is a repair and not a capital improvement. Where an improvement results in an increase in the
capital
value
of
the
real
property,
it
is
generally
considered
that
a
capital
improvement
has
been
performed.
(But see below list of taxable capital improvements.)
As an aid to determine whether a contract is for a repair to real property or a capital improvement to real property, the treatment of such transaction for
income tax purposes under the Federal Internal Revenue Code may be used as a guide. If you have any doubt whether the work to be performed constitutes
a repair or an exempt capital improvement, you should communicate with the Division of Taxation and describe in detail such work.
The following are examples of exempt capital improvements:
New construction (other than taxable
Porch enclosure, construction of
Paneling, installation of
capital improvements listed below)
New roof, installation of
New heating system installation
In-ground swim pool, installation of
Tiled bath, installation of
Rewiring
New central air conditioner installation
New bath fixtures, installation of
New electrical outlets installed
Painting a newly constructed house
New kitchen cabinets, installation of
New siding, installation of
New hot water heater installation
New kitchen fixtures, installation of
Garage, construction of
Patio, construction of
Paving of driveway
Storm doors and windows, original
or initial installation of
The following are examples of taxable capital improvements. This form cannot be issued for these services, which are subject to sales tax on and after
October 1, 2006:
l
Seeding, sodding, grass plugging of new lawns, planting trees, shrubs, hedges, plants, etc.
l
Clearing and filling land associated with seeding, sodding, grass plugging of new lawns, or planting trees, shrubs, hedges, plants, etc.,
including tree/stump removal
l
Installing carpeting and other flooring
l
Installing a hard-wired security, burglar or fire alarm system
TO THE CONTRACTOR: If you enter into a contract to add to or improve real property by an exempt capital improvement (see examples above) and the
property owner issues to you a properly completed Certificate of Exempt Capital Improvement, which you must retain, you should not collect sales tax from
the property owner. (You are required to pay sales tax to your supplier on the purchase of the tangible personal property you purchase for use in performing
the contract irrespective of whether the work constitutes a repair or a capital improvement.)
However, if you enter into a contract to repair, maintain, or service real or tangible personal property, or to install a taxable capital improvement, you must
collect tax on the charge for labor or services performed in accordance with the contract.
1. Registered sellers who accept fully completed exemption certificates within 90 days subsequent to the date of sale are relieved of liability for the collection
and payment of sales tax on the transactions covered by the exemption certificate. The following information must be obtained from a purchaser in order
for the exemption certificate to be fully completed:
• Purchaser’s name and address;
• Type of business;
• Reasons(s) for exemption;
• Purchaser’s New Jersey tax identification number or, for a purchaser that is not registered in New Jersey, the Federal employer
identification number or out-of-State registration number. Individual purchasers must include their driver’s license number;
• If a paper exemption certificate is used (including fax), the signature of the purchaser.
The seller’s name and address are not required and are not considered when determining if an exemption certificate is fully completed. A seller that
enters data elements from paper into an electronic format is not required to retain the paper exemption certificate.
The seller may, therefore, accept this certificate as a basis for exempting sales to the signatory purchaser and is relieved of liability even if it is
determined that the purchaser improperly claimed the exemption. If it is determined that the purchaser improperly claimed an exemption, the purchaser
will be held liable for the nonpayment of the tax.
2. Retention of Certificates - Certificates must be retained by the seller for a period of not less than four years from the date of the last sale covered by
the certificate. Certificates must be in the physical possession of the seller and available for inspection.
3. Acceptance of an exemption certificate in an audit situation – On and after October 1, 2011, if the seller either has not obtained an exemption
certificate or the seller has obtained an incomplete exemption certificate, the seller has at least 120 days after the Division’s request for substantiation
of the claimed exemption to either:
1. Obtain a fully completed exemption certificate from the purchaser, taken in good faith, which,
in an audit situation, means that the seller obtain a certificate claiming an exemption that:
(a) was statutorily available on the date of the transaction, and
(b) could be applicable to the item being purchased, and
(c) is reasonable for the purchaser’s type of business; OR
2. Obtain other information establishing that the transaction was not subject to the tax.
If the seller obtains this information, the seller is relieved of any liability for the tax on the transaction unless it is discovered through the audit process
that the seller had knowledge or had reason to know at the time such information was provided that the information relating to the exemption claimed
was materially false or the seller otherwise knowingly participated in activity intended to purposefully evade the tax that is properly due on the
transaction. The burden is on the Division to establish that the seller had knowledge or had reason to know at the time the information was provided
that the information was materially false.
FOR MORE INFORMATION: Read publication S&U-6 (Sales Tax Exemption Administration) at
http://www.state.nj.us/treasury/taxation/pdf/pubs/sales/su6.pdf
DO NOT MAIL THIS FORM TO THE DIVISION OF TAXATION.
This form is to be completed by purchaser and given to and retained by seller.
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