Bill > S1762

This bill temporarily defers certain sales and use tax collection responsibilities for businesses that make significant capital investments and create a substantial number of full-time jobs in New Jersey. Specifically, a business that operates a "customer operations and processing facility" (a facility for storing, packaging, processing, and shipping goods to customers, but not for making retail sales) can be deemed not to be a "seller" for sales and use tax purposes if it demonstrates to the Chief Executive Officer of the New Jersey Economic Development Authority (EDA) that it does not engage in certain prohibited activities within the state and that it will invest at least $130 million and create at least 1,500 full-time jobs between January 1, 2012, and December 1, 2013. These jobs must be maintained for at least 59 months, and employees must be New Jersey residents receiving comprehensive benefits. If these conditions are met, the business will enter into an agreement with the Director of the Division of Taxation, which includes registering as a tax collector by a specific deadline, notifying customers that they may be responsible for remitting their own sales tax, and establishing transportation plans for employees. The bill also outlines penalties, such as a seven percent tax on gross receipts, if the business fails to meet these investment and job creation requirements or violates the agreement. The deferral of tax collection responsibilities ends if the business engages in activities that would subject it to sales tax collection, fails to maintain the required jobs, or if certain other conditions are met, such as the enactment of federal law allowing states to require out-of-state sellers to collect sales tax.