I can’t wait to share this valuable information! The fact is I’ve been giving this information away to my customers for years! Many home owners are unaware that most capital improvements to their home are exempt from sales tax in New Jersey. All you need to do is supply your contractor with a “Sales Tax Exempt Form” commonly referred to as an ST-8 Form. This form was designed to give taxpayers a break from paying sales tax to a contractor if the work performed is a capital improvement to home or land.
What Type of Improvements Are Eligible?
It’s very important to clarify what a capital improvement really is. “Repairs” to your home are not capital improvements and are therefore taxable. New installations however, such as new hot water heaters, new bathroom fixtures, central air, heating systems and new roofing are. Remember, if it just maintains the value of your home, it’s not a capital improvement, but if it increases the value of your home it usually is!
What does this mean to me and how do I get the form? You may have just saved yourself a ton of money you never knew you had the right to keep! As a consumer it’s your responsibility to have this form handy and understand how it’s used. Just present it to your contractor when you have work done and you’ll save money! The ST-8 form is available at www.state.nj.us/treasury/taxation/pdf/other_forms/sales/st8.pdf. Or better yet, just ask one of our technicians. We carry the forms on our trucks and we’ll be happy to explain how they work.
What Do I Do With the Money I Save?
Go out to dinner, take a weekend vacation, and remember your friends at Accurate Plumbing!
President Accurate Plumbing and Drain Cleaning Inc.
N.J Lic. 8364