New Jersey: How to Tax an ATM
- Jul 10, 2013 | Gail Cole
The ATM is one of the wonders of 20th century, up there with the television and commercial aviation. A machine that spits out money, any time, night or day? How cool is that?
If most people consider ATMs to be a convenient way to withdraw money from their bank accounts, the Division of Taxation is concerned with a different issue: specifically, how to tax the installation of an ATM.
Passing through or staying a while?
Much hinges on whether or not the ATM is considered to be a permanent addition to the land on which it stands.
For example, a "through-the-wall" ATM is permanently affixed to a property, and is therefore considered to be a capital improvement to real property. As such, installation services for "through-the-wall" ATMs are exempt from New Jersey sales tax.
A free-standing ATM, however, is not considered to be permanently affixed to a property and therefore is considered tangible personal property rather than a capital improvement. As such, installation services for free-standing ATMs are subject to New Jersey sales tax.
Keeping track of manifold state and local sales taxes is time-consuming. Getting sales tax wrong is costly. Automation can help.
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