Bill > A5986

Introduced Session

This bill allows purchasers, transferees, and assignees involved in bulk sale transactions to provide required notices to the Division of Taxation through electronic submission. The bill also requires the Director of the Division of Taxation to establish an Internet-based system allowing for the electronic submission of bulk sale notices. A bulk sale is the sale, transfer, or assignment of an individual or company's business assets, in whole or in part, outside of the ordinary course of business. Examples of bulk sale transactions include: a mechanic that decides to retire and sells their auto repair business, including tools, equipment, and inventory, to another mechanic; and a baker that gives all of their business assets, such as the bakery and its equipment, to another person as a gift. An example of a transaction that would not qualify as a bulk sale transaction is a paint store that makes a retail sale of brushes and floor stain to a contractor. Under current law, when a bulk sale occurs, the purchaser, transferee, or assignee of the business assets is required to notify the division in order to determine if there is a possible claim for State taxes. This notification is currently required to be provided at least 10 days before the transfer of goods or payment. This notification is also required to be delivered to the director by registered mail or by any other method that the director may prescribe. To date, the director has not prescribed an electronic method for the submission of bulk sale notifications. This bill would provide an additional means by which purchasers, transferees, and assignees can submit required bulk sale notifications by allowing such submissions to occur by electronic means. In order to facilitate such submissions, the bill requires the director to establish an Internet-based system that allows for the electronic submission of bulk sale notifications. At a minimum, the electronic system would be required to allow these individuals or entities to: (1) electronically submit the notification to the director along with any supporting documentation that may be required; (2) receive confirmation that such notification has been properly submitted; and (3) receive subsequent notification related to the existence of one or more possible claims for State taxes, including the amount of the State's claim. The bill further requires the electronic system to be established and operational within one year following the date of the bill's enactment. This bill also requires the electronic system to be accessible on the division's Internet website.

AI Summary

Committee Categories

Alaa Abdelaziz (D)*, 

Introduced, Referred to Assembly Commerce, Economic Development and Agriculture Committee (on 11/17/2025)

Official Document