The New Jersey Division of Taxation published frequently asked questions about the new partial exemption for boats and other vessels.
Effective February 1, 2016, sales of new and used boats and vessels are subject to a reduced tax rate. Additionally, sales and use tax is capped at $20,000 for these purchases. The exemption also applies to leases and rentals of boats and vessels, as well as to both commercial and non-commercial boats and vessels. Accessories and motors affixed to the vessel when purchased are included in the sales price and therefore also eligible for the exemption.