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.