Local school districts, as political subdivisions of the State of New Jersey, are exempt from the New Jersey Sales and Use Taxes when purchasing items for the District use such as desks, chairs, office equipment, school supplies, etc. Sales tax should not be included on purchase orders and will not be paid if included on invoices from vendors.
Occasionally vendors, who do not understand sales tax law relating to school districts, will request a sales tax exemption certificate to “verify” our tax exempt status. However, according to the law, public schools are not required to obtain a tax-exempt certificate. As explained in the Technical Bulletin by the New Jersey Division of Taxation the official letterhead of the school district, signed by the proper school official is sufficient proof to the vendor that the local district is exempt from paying taxes. See the link below for the tax exempt letter which you may use when needed to educate vendors on the law regarding our taxable status.Forms: Tax Exempt Letter & Technical Bulletin