Bill
Bill > A2724
NJ A2724
Establishes credit under sales and use tax for certain small businesses that collect and remit sales and use tax.
summary
Introduced
02/13/2020
02/13/2020
In Committee
02/13/2020
02/13/2020
Crossed Over
Passed
Dead
01/11/2022
01/11/2022
Introduced Session
2020-2021 Regular Session
Bill Summary
This bill provides a credit against a seller's remittance of sales and use tax if that seller is deemed a small business pursuant to the definition set forth in the bill. The credit is equal to 10 percent of a seller's monthly remittance or $100 per month, whichever amount is less. The credit is provided to a seller at the time the seller files their sales and use tax return. The Director of the Division of Taxation can require a seller to submit any documentation, records, and other information as deemed necessary to verify that the seller is a small business. The bill defines small business as a business that is independently owned and operated and employs fewer than 20 full-time employees. If a seller willfully and knowingly falsifies any document, record, or other information required by the director to claim the credit, that seller is subject to a penalty of $100 for a first offense and $200 for each subsequent offense thereafter. The bill takes effect immediately and applies to sales and use tax collections remitted to the State on or after the first day of the sixth month next following the date of enactment.
AI Summary
This bill provides a credit against a seller's remittance of sales and use tax if that seller is deemed a small business, defined as a business that is independently owned and operated and employs fewer than 20 full-time employees. The credit is equal to 10 percent of the seller's monthly remittance or $100 per month, whichever amount is less. The Director of the Division of Taxation can require a seller to provide documentation to verify that they meet the small business criteria, and if a seller willfully and knowingly falsifies any required information, they are subject to monetary penalties. The bill takes effect immediately but applies to sales and use tax collections remitted to the State on or after the first day of the sixth month following the date of enactment.
Committee Categories
Business and Industry
Sponsors (2)
Last Action
Introduced, Referred to Assembly Commerce and Economic Development Committee (on 02/13/2020)
bill text
bill summary
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bill summary
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bill summary
Document Type | Source Location |
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BillText | https://www.njleg.state.nj.us/2020/Bills/A3000/2724_I1.HTM |
Bill | https://www.njleg.state.nj.us/2020/Bills/A3000/2724_I1.PDF |
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