TRENTON – A measure sponsored by Senators Wayne R. Bryant and Barbara Buono that would streamline New Jersey’s sales tax to be more simplified for companies and consumers and work to urge congressional passage of a measure to impose sales tax on Internet sales was approved today by the Senate Budget and Appropriations Committee.
“In its current form, New Jersey’s sales tax can be confusing both to consumers and companies looking to do business in the State,” said Senator Bryant, D-Camden. “This measure would develop a clearer set of rules for determining what items are and are not taxable.”
The Senators’ measure, S-1958, would modify the State’s six percent sales tax to conform to the Streamlined Sales and Use Tax Agreement, an effort to simplify and modernize sales tax use, collection and administration. The bill would modify the current sales tax structure to develop a uniformed sales tax and tax classification law.
The measure would also include an amnesty provision for companies who currently use loopholes to get out of paying taxes. The bill would apply the expanded standards for sales tax to the beginning of the year and create an amnesty program for businesses. The amnesty program is expected to raise $40 million in new and recurring revenue in the coming fiscal year.
The Streamlined Sales Tax was developed in 2001, by New Jersey and 42 other states and the District of Columbia to align the definitions of thousands of goods to allow for consistency among taxing jurisdictions.
“By streamlining New Jersey’s sales and use tax to conform to those standards agreed to by many states, we are making it much easier for companies to do business in New Jersey,” said Senator Barbara Buono, D-Middlesex. “Regardless of the jurisdiction they do business in, there will be one system which controls sales taxes, making it far more likely that they will properly collect and keep track of the sales tax brought in by their business.”
This measure now awaits a vote by the full Senate.