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  Discussion on Attention New Jersey Horse Owners!
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Member:
erika

Posted on Thursday, Oct 16, 2008 - 8:50 am:

I got this in my email yesterday. If it starts here, the rest of you are probably next. Great...yet more taxes in the land of the free, home of the brave!


BEWARE…. STABLE OWNERS AND HORSE OWNERS



THE STATE HAS IMPLEMENTED A 7% STATE SALES TAX ON THE HORSE KEEPING BUSINESS.

NEW AND EFFECTIVE AUGUST 13, 2008.



This sales tax will affect anyone who has a boarding stable and anyone who boards a horse at a stable.

If you pay $650.00 for board, they now want you to pay 7% sales tax on that board money. That would be $650.00 + $45.50 for sales tax.

The state wants the boarding stables to collect this sales tax and pay it into the state. Breeding and re-sale of horses can be exempt from the sales tax if you complete tax exemption forms.



They will not be auditing farms for near 4 years, however, when they do – they will be collecting back taxes with penalties.



This all came on because Governor Corzine needs money and it came through the taxation of storage buildings.



I have included some web sites with this information.



https://www.state.nj.us/agriculture/pd/horsekeepingbusinesses.pdf



https://www.esc.rutgers.edu/downloads/Horse_Keeping_Businesses_pdf.8-13-08_(2).pdf



https://www.nj.gov/agriculture - go to publications on the left…. Then for farmers on the right and to: Farming & NJ sales & use tax information guide



https://www.state.nj.us - type in search…. Equine businesses

Or go straight to: https://www.state.nj.us/agriculture/news/press/2008/approved/press080915.html



https://www.state.nj.us/treasury/taxation - tax forms



THE NEW JERSEY HORSE INDUSTRY NEEDS TO COME TOGETHER AND TAKE THIS TO LEGISLATION.

CONTACT OR EMAIL TO THE NJ HORSE COUNCIL – EMAIL: NJHORSE@AOL.COM WEB SITE: https://WWW.HORSECOUNCIL.COM ) WE NEED TO FIND OUT WHAT AND HOW TO DO SOMETHING ABOUT THIS TAX.





Sales and Use Tax Returns

Every business which is on a reporting basis for

sales tax purposes must file sales tax returns.

Information on filing requirements and reporting

methods is available on the Division of Taxation

.s Web site.



Exemption Certificates

New Jersey has exemption certificates which can

be used to purchase goods without the payment

of sales tax in certain situations. Each exemption

certificate has a specific use. The New Jersey

seller accepting an exemption certificate must

always be registered with New Jersey. The most

common certificates are the Resale Certificate

(Form ST-3), Exempt Use Certificate (Form

ST-4), and Exempt Organization Certificate

(Form ST-5).
Member:
twadwis

Posted on Thursday, Oct 16, 2008 - 10:48 am:

Here in Wisconsin we have a 5% tax on most any service other than those deemed 'necessary' (beauty shops are exempt !!) plus counties can add on their cut and many have added 1/2 % so we pay 5-1/2% on boarding, training, farrier, feed, horse sales, equipment +++. There are a couple of exemptions, breeding, re-sale and meat, but don't get caught cutting corners. Interesting that the state still classifies equine as food and fiber animals which makes them livestock yet we are the only class taxed.
Since horses for the most part are recreation I can understand the rational for taxing but because so many people go to a cash system to avoid paying it gets to be a problem. Example, as in the boarding mentioned, stable A (keeping legal books) will be at a disadvantage charging tax for boarding, horse sales, etc., when stable B accepts cash, no tax, thus cheaper.
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