The New Jersey Division of Taxation recently issued a bulletin on purchases and sales made by morticians, undertakers, and funeral directors.
Sales of tangible personal property (such as caskets) by these persons are exempt. Any sales to these persons for use in conducting funerals, however, are subject to tax. Morticians, undertakers, and funeral directors are the consumers, not the resellers, of any property used in conducting funerals.
The bulletin also notes that sales of funeral services are not subject to sales tax. New Jersey only taxes services that it identifies as taxable, and funeral services are not identified as taxable.