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State Tax Day – Current, S.14, New Jersey – Sales and Use Tax: New Jersey Adopts Economic Nexus for Remote Sellers, (Aug. 15, 2018)

Effective October 1, 2018, certain remote sellers will be required to register, collect and remit New Jersey sales tax.

Sales/Economic Thresholds

The Division of Taxation announced that sales tax collection will be required in New Jersey if, during the current or prior calendar year, a remote seller exceeds either:

  • $100,000 in gross revenue from sales in New Jersey; or
  • 200 or more separate transactions in New Jersey.

A remote seller is a business that sells products online, by mail order or by telephone to a customer located in a state in which the seller has no physical presence.

Prospective Application

The economic nexus provision takes effect October 1, 2018. It was prompted by the U.S. Supreme Court’s decision in South Dakota v. Wayfair, Inc. This prospective treatment does not apply if the seller has a physical presence in New Jersey, or is otherwise legally obligated to collect and remit New Jersey sales and use tax. Sellers, including remote sellers, that are currently collecting and remitting New Jersey sales or use tax should continue to do so.

The notice can be viewed on the Division of Taxation’s website at https://www.state.nj.us/treasury/taxation/remotesellers.shtml 

September 4, 2018