By SHERRI RUGGIERI
In this oppressive heat, a government shutdown in New Jersey would have caused political fireworks. The budget compromise rejected a proposal tin increase the state’s sales tax. This left lawmakers scrambling to identify an alternate source for revenue. Therefore, it is not surprising that New Jersey’s Senate approved bill S-2794, approved 22-15, to tax out-of-state online sellers. Previously, online businesses with no physical presence in New Jersey eluded the snare of state sales taxes.
The U.S. Supreme Court opened the door for New Jersey’s legislative action by its decision in South Dakota v. Wayfair, Inc. The Court held that a nexus to the state was “clearly sufficient” if a remote seller delivered in excess of $100,000 of goods or services or conducted 200 or more transactions for goods and services into a state. Senate President Steve Sweeney (Gloucester) stated: “This will help restore competitive balance for the retail stores in New Jersey and for the online businesses located here. It will also produce more ongoing and sustained revenue for the state at a time when it is needed. We can reasonably expect an annual increase of more than $100 million a year.”
According to a federal accounting agency, New Jersey will generate $216 million to $351 million through the vehicle of this tax. Marketplace providers like eBay and Amazon would be responsible for collecting NJ’s state sales tax through their Internet platform. Senator Singleton (Burlington) added, “It’s a matter of tax fairness that will level the playing field for in-state businesses that have been playing by the rules. The imbalance has grown as the amount of internet business has increased as Americans have done more of their shopping online.”
Sherri Ruggieri is the managing editor of Empire State News. A practicing attorney for over 20 years, Ms. Ruggieri is also chairperson of Edison Township’s Planning Board. Additionally, she has served as a college professor, with nearly a decade of experience in teaching law and political science courses.
COMMENTS DISABLED BY SITE.
YOU MAY, HOWEVER, COMMENT THROUGH FACEBOOK.