This bill amends the Sales and Use Tax Act by eliminating the transaction nexus requirement for remote sellers. Under current law, a remote seller is required to collect and remit sales tax to New Jersey if either their gross revenue from taxable transactions exceeds $100,000 in the current or prior calendar year, or if they made 200 or more separate taxable transactions for delivery into the state during the same period. The proposed legislation removes the second criterion regarding the number of transactions, meaning that remote sellers will only need to collect sales tax if their gross revenue threshold is met.

By simplifying the criteria for tax collection, the bill aims to streamline compliance for remote sellers and reduce the administrative burden associated with tracking the number of transactions. The change is expected to make it easier for remote sellers to understand their tax obligations, as they will only need to monitor their revenue rather than the number of individual sales. The bill will take effect on the first day of the second month following its enactment.

Statutes affected:
Introduced: 54:32B-3.5