Bill
Bill > S711
NJ S711
NJ S711Eliminates transaction nexus requirement under Sales and Use Tax and Corporation Business Tax.
summary
Introduced
01/13/2026
01/13/2026
In Committee
01/13/2026
01/13/2026
Crossed Over
Passed
Dead
Introduced Session
2026-2027 Regular Session
Bill Summary
The bill amends current law to remove the transactional nexus requirement that is used to determine when: (1) a remote seller is subject to the Sales and Use Tax Act and required to collect and remit sales tax to the State; and (2) a corporation is subject to taxes imposed under the Corporation Business Tax (CBT). Under current law, the Sales and Use Tax Act provides that a seller who makes retail sales of tangible personal property, specified digital products, or taxable services for delivery into New Jersey, without having a physical presence in the State, is subject to the Sales and Use Tax if : (1) the seller's gross revenue from taxable transactions delivered into New Jersey exceeds $100,000 in the current or prior calendar year; or (2) the seller made 200 or more separate taxable transactions for delivery into New Jersey during the current or prior calendar year. This bill removes the second criterion related to the number of transactions. By eliminating this transactional nexus requirement, the bill provides that remote sellers would only be required to collect and remit sales tax to the State when the seller's gross revenue from taxable transactions delivered into the State exceeds $100,000 in the current or prior calendar year. Similarly, under current law, the Corporation Business Tax Act provides that a corporation that derives receipts from sources within the State is subject to the CBT if: (1) the corporation derives receipts from sources within the State in excess of $100,000 during the corporation's fiscal or calendar year; or (2) the corporation has 200 or more separate transactions delivered to customers in this State during the corporation's fiscal or calendar year. The bill removes the second criterion related to the number of transactions. By eliminating this transactional nexus requirement, the bill provides that corporations would only be subject to CBT when the corporation's receipts from sources within this State exceed $100,000 in the corporation's fiscal or calendar year.
AI Summary
This bill amends existing New Jersey law to remove a requirement that businesses must have a certain number of transactions within the state to be subject to sales tax and the Corporation Business Tax (CBT). Previously, remote sellers (those without a physical presence in New Jersey) were required to collect and remit sales tax if they either had over $100,000 in gross revenue from taxable transactions delivered into the state or if they made 200 or more separate taxable transactions delivered into the state in the current or prior year. Similarly, corporations were subject to the CBT if they derived over $100,000 in receipts from sources within the state or had 200 or more separate transactions delivered to customers in the state. This bill eliminates the "200 or more separate transactions" criterion for both sales tax and CBT, meaning businesses will now only be subject to these taxes if their gross revenue from taxable transactions delivered into New Jersey (for sales tax) or their receipts from sources within the state (for CBT) exceed $100,000 in the current or prior year. This change aims to simplify tax obligations for businesses by focusing solely on revenue thresholds rather than the volume of individual transactions.
Committee Categories
Budget and Finance
Sponsors (2)
Last Action
Introduced in the Senate, Referred to Senate Budget and Appropriations Committee (on 01/13/2026)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2026/S711 |
| BillText | https://pub.njleg.gov/Bills/2026/S1000/711_I1.HTM |
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