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 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. The proposed legislation removes the second criterion regarding the number of transactions, meaning that remote sellers will only need to meet the revenue threshold to be subject to the sales tax.

By simplifying the criteria for remote sellers, the bill aims to streamline tax compliance for businesses operating without a physical presence in New Jersey. This change is expected to reduce the burden on sellers who may have previously been required to track and report the number of transactions, thereby making it easier for them to comply with state tax laws. The bill will take effect on the first day of the second month following its enactment.

Statutes affected:
Introduced: 54:32B-3.5