NJ A6006

Reduces New Jersey's sales and use tax rate from 6.625% to 6% effective January 1, 2026

Lowers the combined maximum tax rate cap for hotel/motel occupancy (sales tax plus local taxes) from 13.625% to 13% starting January 1, 2026

Reduces the combined maximum rate for municipal retail sales taxes from 12.625% to 12% effective January 1, 2026

Establishes transition rules for service/maintenance agreements and contracts spanning the rate change date, requiring tax to be apportioned based on the number of days in each rate period

Applies the new 6% rate to retail sales of tangible personal property, prepared food, hotel occupancy, amusement admissions, telecommunications services, parking, and health club memberships