Signed by Governor Phil Murphy

Vote Smart's Synopsis:

Vote to pass a bill that amends the sales tax code to include online purchases.

Highlights:

• Requires a marketplace seller to collect and pay taxes imposed on any retail sale made or facilitated in this state to the Director of Taxation in the state Department of the Treasury (Sec. 2).

• Requires transient space marketplaces to collect and pay the tax for transactions on behalf of persons engaged in the business of providing transient accommodations or hotel rooms (Sec. 3).

• Defines “marketplace facilitator” as a person who facilitates a retail sale of tangible personal property, specified in digital products, or taxable services by satisfying the following (Sec. 2):

• The person directly or indirectly does, but is not limited to, any of the following:

• Lists, makes available, or advertises the tangible personal property, specified digital products, or services for sale by a marketplace seller in a forum owned, operated, or controlled by the person;

• Facilitates the sales of a marketplace seller’s product through a marketplace by transmitting or otherwise communicating an offer or acceptance of a retail sale of tangible services between a marketplace seller and a purchaser in a forum including a shop, store, booth, catalog, internet site, or similar forum;

• Owns, rents, licenses, makes available, or operates any electronic or physical infrastructure or any property, process, method, copyright, trademark, or patent that connects marketplace sellers to purchasers for the purpose of making retail sales of tangible personal property, specified digital products, or taxable services; or

• Provides a marketplace for making retail sales of tangible personal property, specified digital products, taxable services, or otherwise facilitates retail sales of tangible personal property, specified digital products, or taxable services regardless of ownership or control of the tangible personal property, specified digital products, or taxable services that are the subject of the retail sale.

• The person directly or indirectly does any of the following:

• Collects the sales price of a retail sale of tangible personal property, specified digital products, or taxable services;

• Provides payment processing services for a retail sale of tangible personal property, specified digital products, or taxable services; or 

• Charges, collects, or otherwise receives selling fees, listing fees, referral fees, closing fees, fees for inserting or making available tangible personal property, specified digital products, or taxable services on a marketplace, or other consideration from the facilitation of a retail sale of tangible personal property, specified digital products, or taxable services, regardless of ownership or control. 

Full Bill Text