Wheaton Industries v. Taxation Division Director

LARIO, J.T.C.

Wheaton Industries appeals from part of a final determination of the Director, Division of Taxation, assessing it a balance of tax liability under the New Jersey Sales and Use Tax Act, N.J.S.A. 54:32B-1, et seq. [the act] for the period April 1, 1983 to June 30, 1987.

The issue presented by the challenged portion is whether a tax under the act applies to labor charges made by an out-of-state contractor for reconditioning plaintiffs property (machinery used in its manufacturing business) where the contractor ships the reconditioned property to plaintiff at its New Jersey location…