This bill amends current New Jersey law by eliminating the transactional nexus requirement for both the Sales and Use Tax and the Corporation Business Tax. Under the existing law, a remote seller was required to collect and remit sales tax if their gross revenue from taxable transactions exceeded $100,000 or if they made 200 or more separate transactions for delivery into the state. The bill removes the second criterion regarding the number of transactions, meaning that remote sellers will only need to collect sales tax when their gross revenue exceeds $100,000 in the current or prior calendar year.

Similarly, for corporations, the bill removes the requirement that a corporation must have 200 or more separate transactions delivered to customers in New Jersey to be subject to the Corporation Business Tax. Now, corporations will only be liable for the tax if their receipts from sources within the state exceed $100,000 during their fiscal or calendar year. This change simplifies the criteria for tax liability, focusing solely on revenue thresholds rather than transaction counts. 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