NJ S4886

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 and motel occupancies (including State sales tax plus local taxes) from 13.625% to 13% starting January 1, 2026

Reduces the combined maximum tax rate for municipal sales taxes adopted under pre-1966 ordinances from 12.625% to 12% when combined with the State sales tax

Establishes transition rules for service and maintenance agreements, occupancy rentals, and construction contracts that span the January 1, 2026 rate change date, requiring taxes to be prorated based on the number of days falling within each tax rate period