Rev. 5/17
About New Jersey Taxes
Cemeteries, Funerals & New Jersey Taxes
Publication ANJ-22
Introduction
The New Jersey Cemetery Act, 2003 (N.J.S.A. 45:27-1 et seq.) accords a broad range of tax exemptions
in recognition of the vital public health and welfare benefits cemeteries provide. This bulletin explains
the Sales Tax treatment of sales and purchases by cemetery companies; sellers/installers of
gravestones, tombstones, markers, and mausoleums; and funeral directors.
Registration
New Jersey law requires all businesses to register with the State for tax purposes at least 15 business
days before starting business. To fulfill the registration obligation, you can print out, then file a
Business Registration Application (Form NJ-REG) by mail. You can file online through the Division of
Revenue and Enterprise Services’ NJ Business Gateway Services website. If your application indicates
that the business will collect Sales Tax or purchase materials for resale, the Division of Revenue and
Enterprise Services will send you a New Jersey Certificate of Authority (Form CA-1).
This is your authorization to collect New Jersey Sales Tax and accept exemption certificates for tax-
exempt sales. You must be registered with New Jersey to accept exemption certificates. You also may
be required to make a public records filing depending on the type of business ownership. More
information on public records filing is available in the New Jersey Complete Business Registration
Package (NJ REG) or by calling 609-292-9292.
Cemetery Companies
“Cemetery company” means any individual, corporation, partnership, association, or other public or
private entity which owns, operates, controls, or manages land or places used or dedicated for use for
burial of human remains or disposition of cremated human remains, including a crematory located on
dedicated cemetery property. Cemetery companies are prohibited from engaging in any of the
following activities:
• Manufacture or sale of vaults, private mausoleums, monuments, markers, or bronze memorials
• Conduct of any funeral home or the business or profession of mortuary science
Exemptions
The Act relieves cemetery companies from the payment of:
• Real Property Taxes on lands dedicated to cemetery purposes;
• Income Taxes;
• Sales and Use Taxes;
Publication ANJ–22 About New Jersey Taxes:
Cemeteries, Funerals & NJ Taxes
Rev. 5/17
• Business Taxes; and
• Inheritance Taxes.
Cemetery property is exempt from sale for collection of judgments. Cemetery trust funds and trust
income are exempt from tax and exempt from sale or seizure for collection of judgments against the
cemetery company.
Purchases
For Cemetery Use.
Tangible personal property and services purchased by a cemetery company for
cemetery use are exempt from New Jersey Sales and Use Tax. For the exemption to be valid, the
cemetery company must take title to the property and must issue the supplier an Exempt Use
Certificate (Form ST-4) to substantiate the exempt character of the purchase.
For Resale.
When the item(s) purchased are intended for resale, the cemetery company issues a valid
New Jersey Resale Certificate (Form ST-3) to the supplier in lieu of paying Sales Tax.
Note: Cemetery companies do not use the Exempt Organization Certificate (Form ST-5) for making
tax-exempt purchases, except when the cemetery is part of a religious or charitable organization that
has been approved for an ST-5 exempt organization certificate.
Sales
Taxable Sales.
Charges for wreaths, evergreen blankets, flowers, and other similar items are taxable.
Cemetery companies issue a resale certificate to their supplier when buying such items and then collect
tax when selling the items to customers.
Exempt Sales.
Charges by a cemetery company to an interment space owner for perpetual care,
annual care, and/or special care of cemetery graves or plots, or for other services related to the
maintenance and care of cemeteries, graves, and interment spaces are exempt from Sales Tax. These
services are also exempt from Sales Tax when performed by an outside contractor rather than a
cemetery company.
Charges for services which result in an exempt capital improvement to cemetery property are exempt
from Sales Tax. The installation and inscription of monuments, markers, mausoleums, and memorials
and the provision of railings, curbing, walks, corner posts, and irrigation systems for lots and graves are
exempt from Sales Tax. Charges for conducting interments, entombments, inurnments, and
disinterments are also exempt from Sales Tax.
Publication ANJ–22 About New Jersey Taxes:
Cemeteries, Funerals & NJ Taxes
Rev. 5/17
Sellers/Installers of Gravestones, Tombstones, Markers, and Mausoleums
Sales of gravestones, tombstones, markers, and other memorials, the foundations upon which they are
built, and the materials used to set them in the cemetery are subject to New Jersey Sales and Use Tax.
The point at which tax is collected is determined by whether the item(s) are sold by a retailer or by a
contractor.
Retailers
. Retail sales are transactions in which the gravestone or other marker is sold
without
installation. The retailer who makes the sale must collect Sales Tax from the purchaser. The retailer
issues a valid New Jersey Resale Certificate (Form ST-3) to the supplier and pays no Sales Tax
when buying the gravestone or marker.
•
Contractors.
Gravestones and other markers sold
with
installation constitute an exempt capital
improvement to real property. The seller/installer is a contractor for New Jersey Sales Tax purposes.
Contractors are considered to be the final consumers of all materials which become part of the real
property and must therefore pay Sales Tax to their supplier(s) when purchasing gravestones,
tombstones, markers, and mausoleum materials. A contractor should not collect tax on charges to
the customer for the gravestone, tombstone, marker, or materials or for labor charges when the
work results in an exempt capital improvement, such as installation or reinstallation.
•
Fabricator/contractors
are contractors who build or assemble as well as sell and install items, such
as tombstones or monuments, which become a component part of real property. It is often difficult
for a fabricator/contractor to determine in advance whether a finished product will be sold with or
without installation. Consequently, a fabricator/contractor of gravestones may issue a valid resale
certificate to the supplier and not pay Sales Tax when purchasing the material needed to construct
the marker. The fabricator/contractor then either charges Sales Tax to the customer on the selling
price of the item if sold without installation, or, if installed, remits Use Tax to the State based on the
price at which items of the same kind are offered by the fabricator/contractor for retail sale or on the
cost of the materials used to make the marker (if the fabricator/contractor does not make retail sales
of items of the same kind). For more information see the Tax Topic Bulletin S&U-3,
Contractors and
New Jersey Taxes.
Funeral Directors
A funeral director’s charges for funeral services or caskets and other funeral items are not subject to
Sales Tax. However, the funeral director is required to pay tax to the supplier when purchasing the
items. If the supplier does not charge Sales Tax, the funeral director must remit Use Tax directly to the
State. The funeral director must also pay Sales and Use tax on the supplies and equipment purchased
to perform funeral services, unless the purchase qualifies for an exemption, such as for clothing or
protective equipment.
For More
Information
Contact the Division’s Customer Service Center at 609-292-6400, or email us. Many State tax forms and
publications are available on our website.
