Bill > A2003

This bill amends New Jersey's sales and use tax law to clarify who is considered a "seller" and therefore responsible for collecting and remitting sales tax. It specifically expands the definition of a seller to include individuals or entities that have a substantial ownership interest in, or are owned by, a related business with a physical presence in New Jersey, and sell similar products under a similar name, or use the in-state facilities or employees of a related business to facilitate sales. It also deems a seller to be anyone who derives receipts from leasing tangible personal property located in the state, or who is part of a controlled group of corporations where another member is a seller in New Jersey. Additionally, the bill clarifies that a person is considered a seller if they sell tangible personal property, digital products, or services taxed by the state and have an affiliated person who uses the same or a similar trademark or trade name in New Jersey, or whose activities in New Jersey benefit the seller's market development, unless those activities are limited to specific professional services like accounting or legal advice. The bill also introduces a presumption that a person is a seller if they are part of a controlled group of corporations where a component member is a seller in New Jersey, which can be rebutted with evidence. Finally, it states that a person making sales to New Jersey customers through various channels, who contracts with an entity for delivery, installation, assembly, or maintenance services within the state, will also be considered a seller. The bill also defines important terms like "maintaining a place of business within this State," "substantial ownership interest," "ownership," "controlled group of corporations," "component member," and "affiliated person" to support these changes.