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Posted on: September 7, 2018

CV for Out-of-State Sales Tax Bill

Governor Murphy sent A-4261/S-2794 back to the Legislature, with recommended amendments. This bill is a response to the US Supreme Court’s decision in South Dakota v. Wayfair, which cleared the way for States wishing to require the application of the sales tax on remote transactions. It will level the sales tax playing field for our Main Street, brick-and-mortar retailers.

 

For many years, the League has advocated for Congressional action to allow States to collect Sales Taxes on distant commerce. We wanted to provide support for Main Street businesses, forced into unfair competition with internet and other out-of-state merchants. For us, it wasn’t about State Sales Tax collections. It was about supporting the businesses that pay local property taxes, employ local residents, and contribute, in other ways, to the spirit of the community. Whether through sponsorship of local youth sports, support for neighborhood parades and special events, or hosting fund-raisers for area organizations, our local retailers help to breathe life into strong municipalities.

 

We welcomed the Court’s Wayfair decision and our State Legislature’s action. Governor Murphy's conditional veto calls for several technical amendments. We expect the Legislature to consider those in September.

 

Contact: Jon Moran, Senior Legislative Analyst, jmoran@njslom.org, 609-695-3481. x121.


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