This bill amends current New Jersey law regarding the criteria for determining when remote sellers and corporations are subject to the Sales and Use Tax and the Corporation Business Tax (CBT). Specifically, it eliminates the requirement that sellers must have 200 or more separate transactions in order to be liable for collecting and remitting sales tax, as well as the corresponding requirement for corporations under the CBT. Instead, both remote sellers and corporations will only be required to meet the threshold of exceeding $100,000 in gross revenue or receipts from sources within the state during the relevant time period.

By removing these transactional nexus requirements, the bill simplifies the tax obligations for remote sellers and corporations, making it easier for them to understand when they are subject to tax in New Jersey. The changes aim to streamline compliance and reduce the administrative burden on businesses operating without a physical presence in the state. The bill is set to take effect on the first day of the second month following its enactment.

Statutes affected:
Introduced: 54:32B-3.5, 54:10A-4.16