New Jersey

Business Inventory Exclusion

Legislation enacted in 1966 exempted 'all goods held as inventory' (Assessor's Handbook §601.1). Form PT-10 covers tangible goods and chattels 'exclusive of inventories.' Form PT-10-1 lists as 'personal property of petroleum refineries subject to taxation' the machinery, apparatus or equipment of a petroleum refinery that is directly used to manufacture petroleum products from crude oil. Under Form PT-10, 'only local exchange telephone companies, and telegraph and messenger systems, companies, corporations and associations that were subject to tax as of April 1, 1997, under Chapter 4, Laws of 1940, … and owning tangible goods and chattels, exclusive of inventories, are required to file a return.'

Sources: https://www.nj.gov/treasury/taxation/pdf/lpt/nj_assessors_handbook_chap6.pdf. https://www.nj.gov/treasury/taxation/pdf/lpt/PT-10-2025.pdf. https://www.nj.gov/treasury/taxation/pdf/lpt/PT-10-1-2025.pdf

Is business inventory taxed in New Jersey?

No. Legislation enacted in 1966 exempted 'all goods held as inventory' (Assessor's Handbook §601.1). Form PT-10 covers tangible goods and chattels 'exclusive of inventories.'

When is the New Jersey property tax assessment date?

October 1 of the pretax year for real property. Business personal property reported on Forms PT-10 and PT-10-1 is valued as of January 1. Real property is assessed as of October 1 of the pretax year per N.J.S.A. 54:4-23 and 54:4-35. For example, the 2026 property-tax assessment is based on the property's market value as of October 1, 2025.

Do I need to file a business personal property tax return in New Jersey?

Form PT-10 is filed only by local exchange telephone companies, and telegraph and messenger systems, companies, corporations and associations that were subject to tax as of April 1, 1997, under Chapter 4, Laws of 1940. Form PT-10-1 is filed for petroleum refinery machinery, apparatus or equipment directly used to manufacture petroleum products from crude oil. Both returns are due on or before September 1 to the municipal assessor.

What business personal property is taxed in New Jersey?

Form PT-10-1 lists as 'personal property of petroleum refineries subject to taxation' the machinery, apparatus or equipment of a petroleum refinery that is directly used to manufacture petroleum products from crude oil. Under Form PT-10, 'only local exchange telephone companies, and telegraph and messenger systems, companies, corporations and associations that were subject to tax as of April 1, 1997, under Chapter 4, Laws of 1940, … and owning tangible goods and chattels, exclusive of inventories, are required to file a return.'

How does New Jersey distinguish between real and personal property for business equipment?

Form PT-10-1 covers petroleum-refinery machinery, apparatus or equipment, and Form PT-10 covers the tangible goods and chattels, exclusive of inventories, of local exchange telephone, telegraph and messenger companies. Equipment constructed as an integral part of a building may be real property; the Assessor's Handbook notes that 'the line of demarcation between real and personal property is not always clear.'