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New Jersey considers the purchaser to be a resident for Sales Tax purposes because he or
she maintains a permanent place of abode in this state.
47. Is a person who is serving in the military and stationed in New Jersey required to
pay tax on the purchase of a motor vehicle in this state if his or her home of record
is not New Jersey?
Yes. All nonresident military personnel, whether living on or off a military reservation within
the territorial limits of New Jersey, must pay New Jersey Sales Tax on motor vehicles
purchased or leased in this state.
48. Are there any tax deferments for New Jersey residents serving in the military
who purchase a car out-of-state?
If you are a resident service member, stationed out of state, and buy a car outside of New
Jersey, but wish to title the vehicle in New Jersey, you may defer payment of Sales Tax
until the vehicle is brought to New Jersey. You must first complete a Military Sales Tax
Deferment Application (Form MD-1), have it notarized, and mail it to the address on the
application. Once we receive your application and approve it, we will send you a Letter of
Deferment. You must present this letter at the time of titling. If the Letter of Deferment is
not received, Sales Tax must be paid. If you already have a deferment for a motor vehicle,
you must pay the Sales Tax on that vehicle, or provide proof that you no longer own it,
before we can issue a deferment for this request. Only one vehicle can be deferred at a
time.
49. Is a veteran exempt from paying Sales or Use Tax on the purchase of a motor
vehicle?
If you are a disabled veteran and received funds from the U.S. Department of Veterans
Affairs (VA), or the New Jersey Department of Military and Veterans Affairs (NJDVA), to
purchase a car, the amount received for the vehicle is not subject to Sales Tax. The
exemption is only applicable if the funds for the vehicle purchase came directly from the
VA/NJDVA, or the VA/NJDVA provides a loan. The funds received must equal the total
purchase price of the vehicle for it to be totally exempt. The payment for the vehicle can
be a combination of personal funds and funds received from the VA/NJDVA. Any amount
that you pay out of pocket toward the purchase of the vehicle is subject to Sales Tax.