[herber]

Recently, the people cutting my lawn added a " Fuel Surcharge " to my bill
(shown as a separate line item)

They are also charging me the 7% NJ Sales tax on BOTH the cuttings charges AND
The fuel surcharge. Can they legally charge the tax on both?? Thanks

[AtlantaTaxExpert]

Absolutely.

Given the recent spike in fuel costs, you will see fuel surcharges on any number of services you purchase (the service has no choice but to pass the costs along to their customers), and most state sales tax laws require that the surcharge be subject to the state sales tax.

[herber]

[QUOTE=AtlantaTaxExpert]Absolutely.

Given the recent spike in fuel costs, you will see fuel surcharges on any number of services you purchase (the service has no choice but to pass the costs along to their customers), and most state sales tax laws require that the surcharge be subject to the state sales tax.

Thanks, but do you know if the surcharge is specifically subj. to Sales Tax in NEW JERSEY ?

[AtlantaTaxExpert]

Not specifically, but a phone call or email to the NJ tax authorities will get you a definite answer.

[emcandbebe]

The sales tax follows the taxibility of the good or service provided. If sales tax is exempt for the item or service, there can be no sales tax applied to the surcharge. See the NJ Treasury - Division of Taxation advisory below.

http://www.state.nj.us/treasury/taxa...rge_notice.pdf