New Jersey is hoping to harvest up to $350 million in new sales tax revenue annually from online vendors and marketplace facilitators under a new law signed by Gov. Phil Murphy (D) Oct. 4.
Responding to revenue opportunities under the groundbreaking South Dakota v.Wayfair ruling, Murphy signed A-4496, a provision of the Sales and Use Tax Act. The new law specifies that out-of-state online vendors that make 200 or more separate transactions in a calendar year or have sales in excess of $100,000 in the Garden State will need to remit the state’s 6.625 percent sales tax.
The changes could yield between $216 million and $351 million in new sales tax revenue for the state, the bill’s sponsors say.
Daily Tax Report: State
by Michael J. Bologna
October 5, 2018