New Jersey Administrative Code Title 18 - TREASURY - TAXATION
New Jersey Administrative Code — Title 18: Treasury: Taxation
1. Overview
Title 18 of the New Jersey Administrative Code (N.J.A.C.) governs the administration of taxation in the state of New Jersey.
It is issued by the New Jersey Department of the Treasury, specifically through the Division of Taxation, and provides detailed rules and procedures for:
Collection of state taxes
Enforcement of tax laws
Administrative procedures for taxpayers
Interpretation of statutes enacted by the New Jersey Legislature
Title 18 is essentially the regulatory framework that implements the state’s tax laws.
2. Legal Authority
The authority for Title 18 comes from:
New Jersey Statutes Annotated (NJSA) governing state taxation
Various legislative acts, including the State Tax Uniform Procedure Law (STUPL)
The Administrative Code gives the Treasury the power to:
Issue regulations for tax administration
Collect taxes efficiently
Hear tax appeals and disputes
Enforce compliance with state tax laws
3. Scope of Title 18
Title 18 covers:
Income Tax Administration
Individual income tax
Corporate business tax
Withholding requirements
Sales and Use Taxes
Registration of sellers
Collection and remittance rules
Exemptions and special cases
Property Taxes
Assessment and appeals
Reporting requirements for businesses and individuals
Other State Taxes
Inheritance and estate tax
Excise taxes (on gasoline, tobacco, alcohol, etc.)
Realty transfer fees
Procedural Rules
Filing deadlines and methods
Payment procedures
Refund and credit processes
Enforcement Rules
Audits and examinations
Penalties for non-compliance
Collection methods, including liens and garnishments
4. Key Provisions
a) Registration and Filing
Businesses and individuals must register with the Division of Taxation for applicable taxes.
Taxpayers must file returns electronically or on forms approved by the Division.
b) Payment of Taxes
Taxes must be paid according to deadlines established by Title 18.
Penalties and interest apply for late payments or underpayments.
c) Audits and Inspections
The Division has authority to audit taxpayers to verify compliance.
Businesses must maintain proper records for examination.
d) Appeals
Taxpayers may appeal assessments or determinations to:
The Director of the Division of Taxation
The New Jersey Tax Court if dissatisfied with administrative review
e) Penalties
Failure to comply with Title 18 can result in:
Monetary fines
Interest on unpaid taxes
Legal actions, including liens or property seizure in extreme cases
5. Examples of Taxpayer Obligations
Example 1: Sales Tax
A retailer must collect 6.625% sales tax on taxable sales and remit it to the Division.
Must keep receipts and invoices for at least 3–5 years.
Example 2: Corporate Income Tax
Corporations must file annual returns and report gross income and deductions.
Division can audit to verify accuracy of reported figures.
Example 3: Property Tax
Property owners must pay local property taxes.
If assessed incorrectly, the taxpayer can file an appeal under procedures in Title 18.
6. Enforcement Mechanisms
Title 18 gives the Treasury broad powers, including:
Issuing tax liens on real or personal property
Seizing bank accounts or wages for unpaid taxes
Suspending business licenses for non-compliance
Assessing penalties and interest for late payments
These mechanisms ensure that taxpayers comply with state tax laws efficiently.
7. Compliance and Reporting
Taxpayers must:
Maintain accurate financial records
File returns on time
Report all income, sales, and property accurately
Respond to Division audits promptly
Failure to comply can trigger administrative or legal actions.
8. Policy Purpose
The rules in Title 18 aim to:
Ensure consistent and fair tax collection
Prevent tax evasion and fraud
Provide clear procedures for compliance and appeals
Protect taxpayer rights while enforcing state tax laws
9. Summary (Exam-Ready Points)
Title 18 governs taxation administration in New Jersey under the Treasury.
Covers income, sales, property, estate, and excise taxes.
Provides rules for registration, filing, payment, audits, and appeals.
Authorizes the Division of Taxation to enforce compliance and impose penalties.
Ensures records are maintained and taxpayer rights are protected.
Enforcement includes audits, liens, interest, fines, and legal actions.
Policy goal: fair, efficient, and consistent tax administration.
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