Bill Text: NJ A495 | 2010-2011 | Regular Session | Introduced

---

Bill Title: Allows vendors to retain 1% of sales tax collected as consideration for collecting and promptly remitting the tax.

Spectrum: Partisan Bill (Republican 6-0)

Status: (Introduced - Dead) 2010-01-12 - Introduced, Referred to Assembly Budget Committee [A495 Detail]

Download: New_Jersey-2010-A495-Introduced.html

---

ASSEMBLY, No. 495

STATE OF NEW JERSEY

214th LEGISLATURE

 

PRE-FILED FOR INTRODUCTION IN THE 2010 SESSION

 

 

Sponsored by:

Assemblyman  VINCENT J. POLISTINA

District 2 (Atlantic)

 

Co-Sponsored by:

Assemblymen Biondi, DeCroce, Assemblywoman Angelini, Assemblyman Chiusano and Assemblywoman McHose

 

 

 

 

SYNOPSIS

     Allows vendors to retain 1% of sales tax collected as consideration for collecting and promptly remitting the tax.

 

CURRENT VERSION OF TEXT

     Introduced Pending Technical Review by Legislative Counsel

  

An Act allowing vendors to retain a percentage of the sales tax collected, supplementing P.L.1966, c.30 (C.54:32B-1 et seq.).

 

     Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

     1.    The director shall allow to each  person required to collect tax under P.L.1966, c.30 (C.54:32B-1 et seq.), and who has complied with all the provisions of the act, including any rules or regulations made or adopted by the director, a discount of 1% of the tax collected by such person, but a discount of not more than $25,000 in any calendar year, as consideration for collecting and promptly remitting the tax.

 

     2.    This act shall take effect July 1 next following its date of enactment.

 

 

STATEMENT

 

     This bill allows persons required to collect State sales taxes a discount of 1% of the taxes collected as consideration for collecting

and promptly remitting the taxes.  The annual maximum amount a vendor may retain is $25,000.

     The cost of compliance with sales tax laws involves five elements: collection, reporting, payment, auditing and miscellaneous expenses.  According to Federation of Tax Administrators, as of January 2008, there are 26 other states, including New York, Pennsylvania and Maryland, that provide a discount to compensate retailers for the costs of collection and remittance of state sales tax.