Bill
Bill > A3419
NJ A3419
NJ A3419Eliminates 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
This bill amends current law to modify the criteria for determining when a remote seller is subject to the Sales and Use Tax Act and required to collect and remit sales tax to the State, and when 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 required to collect and remit 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. 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. Specifically, this bill removes the second criterion related to the number of transactions under both the Sales and Use Tax and the CBT. By eliminating these transactional nexus requirements, the bill provides that: (1) 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 State exceeds $100,000 in the current or prior calendar year; and (2) 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 New Jersey law to remove a requirement that businesses must have a certain number of transactions with customers in the state to be subject to sales tax and the Corporation Business Tax (CBT). Previously, businesses that didn't have a physical presence in New Jersey were required to collect and remit sales tax if they either exceeded $100,000 in gross revenue from sales delivered into the state or made 200 or more separate taxable transactions for delivery into the state. Similarly, corporations were subject to the CBT if they derived over $100,000 in receipts from 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" threshold for both sales tax and CBT, meaning businesses will only be subject to these taxes if their gross revenue or receipts from New Jersey exceed $100,000. The Corporation Business Tax Act (1945) is a law that imposes taxes on corporations doing business in New Jersey. The term "nexus" refers to the sufficient connection a business has with a state that allows that state to impose taxes on the business.
Committee Categories
Business and Industry
Sponsors (3)
Last Action
Introduced, Referred to Assembly Commerce and Economic Development 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/A3419 |
| BillText | https://pub.njleg.gov/Bills/2026/A3500/3419_I1.HTM |
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