Hello and thank you for using Just Answer.
At first glance I was tempted to answer your question with No, since the advertising did not fall into the traditional folds of New Jersey sales tax. It is not tangible property, it is not under the advertising service, and it certainly is not billboard in the traditional sense.
I had to look a lot deeper and I am under the impression now that Yes, you need to collect sales tax from your advertisers.
New Jersey looked at the Direct Mail Industry and decide to change the wording on certain areas. The new law defines "direct mail" as printed material delivered or distributed by United States mail or other delivery service to a mass audience or to addressees on a mailing list provided by the purchaser or at the direction of the purchaser when the cost of the items is not billed directly to the recipients. It is my feeling that New Jersey could take a look at your operation and classify you as a "other delivery service" to that mass audience. In so doing that is what opens you to potential sales tax collection on the advertising fees.
"If the purchaser of direct mail does not have a direct pay permit and does not provide the seller with either a direct mail form or delivery information, the seller is required to collect sales tax on the entire amount." It is a fair bet that no one (you or the buyer of that space) could say what state the receiver of that advertisement is going to be in so when no specific states (other than NJ) are defined as the receivers of that advertisement, it is to be deemed that NJ only gets the sales tax and that means you would be required to collect and remit.
Now the above is my interpretation so I must insist that you request a ruling from NJ Sales Tax Division for your specific situation. I did not find where a ruling on this exact situation has been made yet.
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