Educational Computer Software, Inc. v. Baldwin

LASSER, P.J.T.C.

Taxpayer, a producer of computer-generated test score results, contests a deficiency tax assessment imposed under the New Jersey Sales and Use Tax Act on the rental of computer equipment. Taxpayer contends that the rental is exempt from tax pursuant to N.J.S.A. 54:32B-8.13(a) because the equipment is used directly and primarily in the production of tangible personal property.1

N.J.S.A. 54:32B-8.13(a) exempts from sales and use tax:

Sales of machinery, apparatus or equipment for use or consumption directly and primarily in the production of tangible personal property by…