This bill establishes a sales and use tax credit for small businesses that collect and remit these taxes. Specifically, it allows eligible sellers to claim a credit equal to 10 percent of their monthly remittance or $100 per month, whichever is lower. The credit is available when the seller files their tax return. To qualify as a small business, a seller must be independently owned and operated with fewer than 20 full-time employees. The Director of the Division of Taxation has the authority to request documentation to verify eligibility, and penalties are imposed for willful falsification of information, with fines of $100 for a first offense and $200 for subsequent offenses.

The bill is set to take effect immediately, but the provisions regarding the credit will apply to sales and use tax collections remitted to the State starting on the first day of the sixth month following the enactment date. This initiative aims to support small businesses by reducing their tax burden and encouraging compliance with tax regulations.