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New Jersey: How to Tax an ATM


 New Jersey: to tax an ATM or not to tax an ATM?

The ATM is one of the wonders of 20th century, up there with the television and commercial aviation. A machine that spits out money, any time, night or day? How cool is that?

If most people consider ATMs to be a convenient way to withdraw money from their bank accounts, the Division of Taxation is concerned with a different issue: specifically, how to tax the installation of an ATM.

Passing through or staying a while?

Much hinges on whether or not the ATM is considered to be a permanent addition to the land on which it stands.

For example, a "through-the-wall" ATM is permanently affixed to a property, and is therefore considered to be a capital improvement to real property. As such, installation services for "through-the-wall" ATMs are exempt from New Jersey sales tax.

A free-standing ATM, however, is not considered to be permanently affixed to a property and therefore is considered tangible personal property rather than a capital improvement. As such, installation services for free-standing ATMs are subject to New Jersey sales tax.

Keeping track of manifold state and local sales taxes is time-consuming. Getting sales tax wrong is costly. Automation can help.

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Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
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.