This bill amends New Jersey's Sales and Use Tax Act and Corporation Business Tax Act by eliminating the transactional nexus requirements for remote sellers and corporations. Under current law, a 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 New Jersey. Similarly, corporations were subject to the Corporation Business Tax if they derived receipts exceeding $100,000 or had 200 or more separate transactions in the state. The bill removes the second criterion related to the number of transactions for both the Sales and Use Tax and the Corporation Business Tax.

As a result of this change, remote sellers will only need to collect and remit sales tax when their gross revenue from taxable transactions delivered into New Jersey exceeds $100,000 in the current or prior calendar year. Likewise, corporations will only be subject to the Corporation Business Tax if their receipts from sources within the state exceed $100,000 during their fiscal or calendar year. This modification aims to simplify the tax obligations for remote sellers and corporations operating in New Jersey.

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