ST-8 (3-23)
                                                         State of New Jersey
                                                         Division of Taxation
    To be completed by both owner                                                                                   A registered New Jersey contractor 
    of real  property and contractor,                         Sales Tax                                             must collect the tax on the amount 
    and retained by contractor. Read                                                                                charged for labor and services under 
   instructions on back of this certifi-                      Form ST-8                                             the contract unless the owner gives 
   cate. Do not send this form to the                                                                               them a fully completed Certificate of 
     Division of Taxation.                               Certificate of Exempt                                      Exempt Capital Improvement.
                                                         Capital Improvement
                                         May be issued only by the owner of the real property
                                         May not be issued for the purchase of materials

                                                              (Name of Contractor)

                                                              (Address of Contractor)

                                         (Contractor’s New Jersey Certificate of Authority Number)

  The following information must be furnished:
  *The nature of the contract is as follows (describe the exempt capital improvement to be made):

  The address or location where work is to be performed: 

 Total amount of contract $ 

  The undersigned hereby certifies they are not required to pay Sales and Use Tax with respect to charges for installation of tangible personal property, 
 because the performance of the contract will result in an exempt capital improvement to real property. The undersigned purchaser hereby affirms 
 (under the penalties for perjury and false swearing) that all of the information shown in this Certificate is true.

           Contractor’s Certification                                                            Property Owner’s Signature
   I certify that all sales and use tax due has been or will be paid by the 
   undersigned on purchases of materials incorporated or consumed in the  Name of owner of real property*
   performance of the contract described herein.
                                                                            Type of Business* (see instructions)

                                                                            New Jersey Taxpayer Identification Number* (see instructions)
                                                                                                                                                           
                                                                            Address of owner of real property*
                                                                            By 

   Signature of Contractor                               Date               Signature of owner, partner, officer of corporation, etc.*   Date

     Any person making representations on this certificate which are willfully false may be subject to such penalties as may be provided for by law.
   
 *Required

 Reproduction of Certificate of Exempt Capital Improvement forms: Private reproduction of both sides of the Exempt Capital Improvement Certificates 
 may be made without the prior permission of the Division of Taxation.

                                                                       Instructions
To the property owner: In cases where the contractor performs work which results in an exempt capital improvement to your house or land 
(real property, they may not charge you any Sales Tax if you issue them a fully completed Certificate of Exempt Capital Improvement (Form ST-8).
It is important to distinguish between an exempt capital improvement and a taxable capital improvement, repair or installation. If the fulfillment of a 
contract only maintains the existing value of the property, it is a repair and not a capital improvement. Where an improvement results in an increase in 
the capital value of the real property, it is generally considered that a capital improvement has been performed. (But see below list of taxable capital 
improvements.)
As an aid to determine whether a contract is for a repair to real property or a capital  improvement to real property, the treatment of such transaction for 
income tax purposes under the Federal Internal Revenue Code may be used as a guide. If you have any doubt whether the work to be performed consti-
tutes a repair or an exempt capital improvement, you should communicate with the Division of Taxation and describe in detail such work.
The following are examples of exempt capital improvements:
              New construction (other than taxable                     Porch enclosure, construction of           Paneling, installation of
              capital improvements listed below)                       New roof, installation of                  New heating system installation
              In-ground swim pool, installation of                     Tiled bath, installation of                Rewiring
              New central air conditioner installation                 New bath fixtures, installation of         New electrical outlets installed
              Painting a newly constructed house                       New kitchen cabinets, installation of      New siding, installation of
              New hot water heater installation                        New kitchen fixtures, installation of      Garage, construction of
              Patio, construction of                                   Paving of driveway                         Storm doors and windows, original
                                                                                                                  or initial installation of
The following are examples of taxable capital, improvements. This form cannot be issued for these services, which are subject to Sales Tax on and after 
October 1, 2006:
   Seeding,•sodding, grass plugging of new lawns, planting trees, shrubs, hedges, plants, etc.
   Clearing•  and filling land associated with seeding, sodding, grass plugging of new lawns, or planting trees, shrubs, hedges, plants, etc., 
    including tree/stump removal 
   Installing•carpeting and other flooring
   Installing•a hard-wired security, burglar or fire alarm system
To the contractor: If you enter into a contract to add to or improve real property by an exempt capital improvement (see examples above) and the 
property owner issues to you a properly completed Certificate of Exempt Capital Improvement, which you must retain, you should not collect Sales Tax 
from the property owner. (You are required to pay Sales Tax to your supplier on the purchase of the tangible personal property you purchase for use in 
performing the contract irrespective of whether the work constitutes a repair or a capital improvement.)
However, if you enter into a contract to repair, maintain, or service real or tangible personal property, or to install a taxable capital improvement, you must 
collect tax on the charge for labor or services performed in accordance with the contract.
1. Registered sellers who accept fully completed exemption certificates within 90 days subsequent to the date of sale are relieved of liability for the 
   collection and payment of Sales Tax on the transactions covered by the exemption certificate. The following information must be obtained from a 
   purchaser (owner of real property) in order for the exemption certificate to be fully completed:
      • Purchaser’s name and address;
      • Type of business (Individual purchasers, enter “Individual”);
      • Reason(s) for exemption;
      • Purchaser’s New Jersey tax identification number or, for a purchaser that is not registered in New Jersey, the federal employer
    identification number or out-of-State registration number. Individual purchasers must include their driver’s license number;
    • If a paper exemption certificate is used (including fax), the signature of the purchaser.
  The seller’s name and address are not required and are not considered when determining if an exemption certificate is fully completed. A seller that 
   enters data elements from paper into an electronic format is not required to retain the paper exemption certificate.
  The seller may, therefore, accept this certificate as a basis for exempting sales to the signatory purchaser and is relieved of liability even if it is deter-
   mined that the purchaser improperly claimed the exemption. If it is determined that the purchaser improperly claimed an exemption, the purchaser will 
   be held liable for the nonpayment of the tax.
2. Retention of Certificates – Certificates must be retained by the seller for a period of not less than four years from the date of the last sale covered by 
   the certificate. Certificates must be in the physical possession of the seller and available for inspection.
3. Acceptance of an exemption certificate in an audit situation – On and after October 1, 2011, if the seller either has not obtained an exemption 
   certificate or the seller has obtained an incomplete exemption certificate, the seller has at least 120 days after the Division’s request for substantiation 
   of the claimed exemption to either:
                1. Obtain a fully completed exemption certificate from the purchaser, taken in good faith, which, 
                  in an audit situation, means that the seller obtain a certificate claiming an exemption that:: 
                  (a) was statutorily available on the date of the transaction, and 
                  (b) could be applicable to the item being purchased, and 
                  (c) is reasonable for the purchaser’s type of business; OR
                2. Obtain other information establishing that the transaction was not subject to the tax.
  If the seller obtains this information, the seller is relieved of any liability for the tax on the transaction unless it is discovered through the audit process 
   that the seller had knowledge or had reason to know at the time such information was provided that the information relating to the exemption claimed 
   was materially false or the seller otherwise knowingly participated in activity intended to purposefully evade the tax that is properly due on the transac-
   tion. The burden is on the Division to establish that the seller had knowledge or had reason to know at the time the information was provided that the 
   information was materially false.
For more information: Read publication S&U-6 (Sales Tax Exemption Administration) at nj.gov/treasury/taxation/pdf/pubs/sales/su6.pdf

                                                        Do not mail this form to the Division of Taxation
                                          This form is to be completed by purchaser and given to and retained by seller.