New Jersey sales tax debt: what the Division of Taxation can do and your options

The New Jersey Division of Taxation administers sales and use tax at 6.625% statewide. There is no general local sales tax, but qualified sellers in Urban Enterprise Zones may charge a reduced rate on certain in-person sales, and some cities levy local hotel or occupancy taxes.

When a New Jersey tax balance goes unpaid, the Division can file a Certificate of Debt with the Superior Court, which has the effect of a judgment lien against the business's property. Collection then can include bank levies and wage executions. The Division offers deferred payment arrangements through its collection staff, generally conditioned on staying current.

Many states let the revenue agency assess owners and officers personally for sales tax a business collected but didn't remit. We haven't confirmed New Jersey's specific rule on an official the Division of Taxation page, so we won't describe it here. If you were an owner, officer or bookkeeper with authority to pay bills, ask the Division of Taxation directly whether a responsible-person assessment applies — and read the federal Trust Fund Recovery Penalty guide if payroll taxes are also behind.

A final determination from the Division can be protested to the Division's Conference and Appeals Branch or appealed directly to the Tax Court of New Jersey, generally within 90 days.

Before calling, file any missing returns, keep the current period paid, and run the free business tax relief assessment to see which routes may be worth raising.