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New Jersey Clarifies Taxability of Disaster Recovery


 Debris removal services in Ocean Grove NJ are exempt from sales tax.

Superstorm Sandy left devastation in its wake: destroyed homes, damaged trees, and flooded automobiles. As the clean-up continues in New Jersey and elsewhere, many questions regarding the taxability of services and products are emerging. To assist taxpayers, the New Jersey Department of the Treasury has released Sales and Use Tax Frequently Asked Questions: Taxability of Purchases of Tangible Personal Property and Services Associated with Disaster Recovery Efforts.

Examples include:

  1. “My detached garage was damaged beyond repair and I hired a contractor to abolish the remaining structure. Are charges for this service subject to tax? - No. charges for demolition services are not subject to tax.
  2. I hired a contractor to remove debris such as fallen branches from my property. Are the charges for this service subject to tax? - Yes. Debris removal services are servicing or maintaining real property and as such the charges are subject to tax.”

And so on. New Jersey residents wondering about the taxability of tree stump removal services, materials and supplies, and the installation of new roofs or replacement shingles will find the answers on this FAQ sheet. 30 questions are answered.

Questions not addressed by this bulletin may be answered in other bulletins, such as:

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Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.