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Are web advertisements subject to sales tax? What about web listings?

Full Question: I currently am starting a business that offers web listings as well as advertising on the website. My question is - are web advertisements subject to sales tax? What about web listings? For example, if a consultant lists their services on our site for a nominal fee -how would sales tax be figured out?

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Answer:

Diane Yetter photoNJ does not generally impose a tax on the sale of advertising services other than the sale or use of mail advertising processing services in connection with a distribution to instate recipients. NJ does tax a number of computer and information services but I couldn't find where web advertising is specifically included however, this may need further investigation depending on exactly what is being provided as part of your advertising services. Included as a taxable information service is: A web-based business gathers statistics concerning the characteristics and activities of Internet users and publishes these statistics on its website. This information is available to anyone subscribing to the service. This service is an information service and is subject to tax as of October 1. The information is not personal or individual. However, excluded from taxable information services is the following: A web-based business allows clients to obtain up to date information about their own website, such as online behavior. The information is collected by the business by embedding code into the client's website design, which sends the info to the business's server. Clients can request reports based on their needs, such as the amount of time customer's spend viewing, length of time on the website, etc. This service is an information service, however, the information is personal or individual in nature and thus, the charge is not subject to tax.

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