Vetoed by Governor Phil Murphy

Vote Smart's Synopsis:

Vote to pass a bill that requires out of state online vendors to collect New Jersey Sales tax.

Highlights:

• Requires that a seller who makes a retail sale of tangible personal property for delivery into the state of New Jersey and does not have a physical presence in the State will be subjected to the sales tax and collect it as long as the seller meets either of the following criteria (Sec. 1):

• The seller’s gross revenue form delivery of tangible personal property, a specified digital product, or services into the State in the calendar year exceeds $100,000; or

• The seller sold tangible personal property property, a specified digital product, or services for delivery into the State in 200 or more separate transactions during the calendar year in which a sale.

• Specifies that a seller is not liable to a purchaser who claims that the sales tax has been over-collected because a provision in this bill is later deemed unlawful (Sec. 1).

• Requires that a marketplace facilitator collect and pay the the sales tax on any retail sale made to a purchaser in the state of New Jersey (Sec. 2).

• Specifies that a marketplace facilitator is not required to collect and pay the tax on a retail sale if the marketplace seller is certified to collect and pay the tax (Sec. 2).

• Requires that these new rules do not interfere with the ability of a marketplace facilitator and a marketplace seller to enter into an agreement with each other regarding the collection of the sales tax (Sec. 2)

• Specifies that the marketplace facilitator will not be liable for the marketplace seller for failure to collect and pay the correct amount of the tax, as long as the failure was the result of the marketplace seller providing the incorrect information (Sec. 2).

• Requires that the marketplace facilitator provides a receipt, invoice, or other statement of the price paid to the purchaser, which shall state the charge and show the tax separately (Sec. 2).

• Specifies that a marketplace facilitator will not be subjected to an audit to demonstrate compliance with the sales tax, unless it is requested by the Director of the Division of Taxation or an officer of the Division of Taxation in the Department of Treasury (Sec. 2).

• Specifies that the department is still able to audit a marketplace seller with respect to retail sales facilitated by a marketplace facilitator on the marketplace seller’s behalf (Sec. 2).

• Defines marketplace facilitator as a person who provides a forum that lists, advertises, stores, or processes orders for tangible personal property subject to tax under the “Sales and Use Tax Act” and directly or indirectly through an agreement or arrangement with a third party, collects receipts from a purchaser and remits payment to a marketplace seller, regardless of whether the person receives compensation or other consideration for such services (Sec. 2).

• Defines forum as a physical or electronic place, including, but not limited to, a store, a booth, an Internet web site, a catalog, or a dedicated sales software application, where tangible personal property or taxable services are offered for sale (Sec. 2).

• Defines marketplace seller as a seller that makes retail sales through a forum operated by a marketplace facilitator (Sec. 2).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that requires out of state online vendors to collect New Jersey Sales tax.

Highlights:

• Requires that a seller who makes a retail sale of tangible personal property for delivery into the state of New Jersey and does not have a physical presence in the State will be subjected to the sales tax and collect it as long as the seller meets either of the following criteria (Sec. 1):

• The seller’s gross revenue form delivery of tangible personal property, a specified digital product, or services into the State in the calendar year exceeds $100,000; or

• The seller sold tangible personal property property, a specified digital product, or services for delivery into the State in 200 or more separate transactions during the calendar year in which a sale.

• Specifies that a seller is not liable to a purchaser who claims that the sales tax has been over-collected because a provision in this bill is later deemed unlawful (Sec. 1).

• Requires that a marketplace facilitator collect and pay the the sales tax on any retail sale made to a purchaser in the state of New Jersey (Sec. 2).

• Specifies that a marketplace facilitator is not required to collect and pay the tax on a retail sale if the marketplace seller is certified to collect and pay the tax (Sec. 2).

• Requires that these new rules do not interfere with the ability of a marketplace facilitator and a marketplace seller to enter into an agreement with each other regarding the collection of the sales tax (Sec. 2)

• Specifies that the marketplace facilitator will not be liable for the marketplace seller for failure to collect and pay the correct amount of the tax, as long as the failure was the result of the marketplace seller providing the incorrect information (Sec. 2).

• Requires that the marketplace facilitator provides a receipt, invoice, or other statement of the price paid to the purchaser, which shall state the charge and show the tax separately (Sec. 2).

• Specifies that a marketplace facilitator will not be subjected to an audit to demonstrate compliance with the sales tax, unless it is requested by the Director of the Division of Taxation or an officer of the Division of Taxation in the Department of Treasury (Sec. 2).

• Specifies that the department is still able to audit a marketplace seller with respect to retail sales facilitated by a marketplace facilitator on the marketplace seller’s behalf (Sec. 2).

• Defines marketplace facilitator as a person who provides a forum that lists, advertises, stores, or processes orders for tangible personal property subject to tax under the “Sales and Use Tax Act” and directly or indirectly through an agreement or arrangement with a third party, collects receipts from a purchaser and remits payment to a marketplace seller, regardless of whether the person receives compensation or other consideration for such services (Sec. 2).

• Defines forum as a physical or electronic place, including, but not limited to, a store, a booth, an Internet web site, a catalog, or a dedicated sales software application, where tangible personal property or taxable services are offered for sale (Sec. 2).

• Defines marketplace seller as a seller that makes retail sales through a forum operated by a marketplace facilitator (Sec. 2).

Full Bill Text