NJ Form ST-10 Motor Vehicle Sales Tax Exemption

NJ Form ST-10 Motor Vehicle Sales Tax Exemption – If you are a nonresident buying or leasing a motor vehicle in New Jersey, or a New Jersey dealer selling to out-of-state customers, Form ST-10 is the key document that documents the sales tax exemption. Officially titled the Motor Vehicle Sales and Use Tax Exemption Report, this form is issued by the New Jersey Division of Taxation and is required under the New Jersey Sales and Use Tax Act.

This guide explains what Form ST-10 is, who qualifies, how to complete it, current filing and retention rules, and where to download the official PDF. All information is drawn from official New Jersey government sources and current regulatory guidance for U.S. residents and dealers.

What Is New Jersey Form ST-10?

Form ST-10 is the official report used by registered New Jersey motor vehicle dealers to document sales or leases of motor vehicles that qualify for exemption from New Jersey sales and use tax. The exemption applies when the purchaser or lessee meets specific nonresident criteria under N.J.S.A. 54:32B-10(a).

The form captures purchaser/lessee details, vehicle identification information, purchase or lease price computation, and formal certifications from both the buyer and the dealer. It serves as the primary record supporting the tax-free transaction.

According to the New Jersey Division of Taxation, the form must be used for qualifying sales and leases occurring on or after June 1, 1988. Related guidance appears in Tax Topic Bulletin S&U-6 (Sales Tax Exemption Administration) and N.J.A.C. 18:24-7.10.

Who Qualifies for the Sales Tax Exemption Using Form ST-10?

To claim the exemption, the purchaser or lessee must satisfy all of the following conditions at the time of taking delivery in New Jersey:

Is a nonresident of New Jersey
Has no permanent place of abode in New Jersey
Is not engaged in carrying on in New Jersey any employment, trade, business, or profession in which the motor vehicle will be used in New Jersey

A “place of abode” is defined as any dwelling maintained on other than a temporary or transient basis, including a house, apartment, hotel room, or other premises. Individuals who maintain homes in both New Jersey and another state generally do not qualify as nonresidents for this purpose.

Special rules apply to corporations, partnerships, and military personnel. Any corporation incorporated in New Jersey or doing business in the state is treated as a resident. Military personnel whose home of record is New Jersey are considered residents regardless of where they are stationed.

If the exemption is improperly claimed, the purchaser becomes liable for the full sales tax (currently 6.625%) plus penalty and interest. Payment of tax to another state does not relieve the obligation to New Jersey.

How to Complete Form ST-10?

The form is divided into clear sections. Dealers should complete it carefully and in full:

Section I – Purchase Information: Purchaser/lessee name, FID number or last three digits of Social Security number, date of purchase/lease, New Jersey and out-of-state addresses, telephone, occupation, employer details, and driver’s license information (state, number, and expiration).
Section II – Vehicle Identification Data: Make, model, year, full serial (VIN) number, body type, and color.
Section III – Computation of Price: Full purchase price or lease payments, any trade-in allowance or discount, and the adjusted amount. Additional fields capture registration state and plate number.
Section IV – Exemption Certification: The purchaser/lessee signs and dates the certification confirming nonresident status and the three statutory requirements. Corporate officers must sign on behalf of the entity.
Section V – Dealer Certification: The dealer signs and dates, affirming that the information is true and correct to the best of their knowledge.

Instructions on the form require the report to be filled out in duplicate, printed or typed, and completed in all applicable fields. The form may be reproduced without prior authority.

Filing, Submission, and Record Retention Requirements

Historically, dealers were required to send the original completed Form ST-10 to the New Jersey Division of Taxation at PO Box 267, Trenton, NJ 08695-0267, and retain a copy.

Effective November 19, 2024, the New Jersey Division of Taxation no longer requires dealers to forward the completed ST-10. According to guidance issued by the New Jersey Coalition of Automotive Retailers (NJ CAR), the completed form must simply be retained by the dealer for at least four years. The Division has indicated it will update the form itself to remove the mailing instruction.

Dealers should continue to complete the form fully at the time of sale or lease and keep it with their records. The four-year retention period aligns with general New Jersey sales tax recordkeeping rules for exemption certificates.

Always verify the latest instructions on the official Division of Taxation website or with your tax advisor, as form revisions can occur.

Download the Official New Jersey Form ST-10

You can download the current official PDF of Form ST-10 directly from the New Jersey Motor Vehicle Commission:

Download New Jersey Form ST-10 (PDF)

An alternate version is also available through the Division of Taxation sales tax forms page. Use only official government sources to ensure you have the most recent revision.

Key Definitions and Important Notes

The reverse side of Form ST-10 provides detailed definitions that dealers and buyers should review carefully:

Resident Individual: Any person who maintains a place of abode in New Jersey.
Corporations and Businesses: Entities incorporated in New Jersey or doing business in the state are residents.
Trade or Business: Anyone carrying on employment, trade, business, or profession in New Jersey is treated as a resident with respect to property used in that activity.
Military Personnel: Home-of-record rules determine residency status.
Voidance of Exemption: If the purchaser is later determined to have been a New Jersey resident at the time of purchase, tax, penalty, and interest become due.

Note that Form ST-10 is generally not required for lease transactions where the primary property location is outside New Jersey, and certain other exemptions (such as for zero-emission vehicles under specific rules) use different certificates such as Form ST-4.

Additional Resources from Official Sources

For the most current information, consult these trusted New Jersey government resources:

U.S. buyers registering the vehicle in their home state will typically owe sales or use tax there. Proper completion of Form ST-10 helps avoid double taxation issues when the New Jersey exemption is valid.

Conclusion

New Jersey Form ST-10 is an essential compliance document for motor vehicle dealers and nonresident purchasers seeking sales and use tax exemption. By accurately completing the form, confirming eligibility under N.J.S.A. 54:32B-10(a), and retaining records for the required period, both parties protect themselves from future tax assessments.

Always download the official form from a .nj.gov source, complete every applicable field, obtain the required signatures, and retain the document for at least four years. When in doubt about eligibility or current procedures, contact the New Jersey Division of Taxation or consult a qualified tax professional familiar with New Jersey motor vehicle sales tax rules.

This article is for informational purposes only and does not constitute legal or tax advice. Tax laws and form requirements can change; verify all details with official New Jersey sources before relying on this information.