STATE OF NEW JERSEY
221st LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2024 SESSION
Sponsored by:
Senator ANTHONY M. BUCCO
District 25 (Morris and Passaic)
SYNOPSIS
Establishes credit under sales and use tax for certain small businesses that collect and remit sales and use tax.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act establishing a credit under the sales and use tax for certain small businesses that collect and remit sales and use tax, 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. a. A seller that is a small business shall be entitled to claim a credit against remittances of sales and use tax equal to 10 percent of the seller's monthly remittance or $100 per month, whichever amount is less. The credit shall be provided to the seller at such time a return is filed and payment is made to the director pursuant to sections 17 and 18 of P.L.1966, c.30 (C.54:32B-17 and C.54:32B-18).
b. The director may require a seller to submit such documentation, records, and other information as deemed necessary to verify that the seller claiming the credit provided in subsection a. of this section meets the criteria set forth in this section to be deemed a small business.
c. If a seller willfully and knowingly falsifies any document, record, or other information required by the director to claim the credit provided in subsection a. of this section, that seller shall be subject to a penalty of $100 for a first offense and $200 for each subsequent offense thereafter.
d. As used in this section:
"Small business" means any business that is independently owned and operated and employs fewer than 20 full-time employees.
2. This act shall take effect immediately; provided however, that section 1 shall apply to sales and use tax collections remitted to the State on or after the first day of the sixth month next following the date of enactment.
STATEMENT
This bill provides a credit against a seller's remittance of sales and use tax if that seller is deemed a small business pursuant to the definition set forth in the bill. The credit is equal to 10 percent of a seller's monthly remittance or $100 per month, whichever amount is less. The credit is provided to a seller at the time the seller files their sales and use tax return.
The Director of the Division of Taxation can require a seller to submit any documentation, records, and other information as deemed necessary to verify that the seller is a small business. The bill defines small business as a business that is independently owned and operated and employs fewer than 20 full-time employees. If a seller willfully and knowingly falsifies any document, record, or other information required by the director to claim the credit, that seller is subject to a penalty of $100 for a first offense and $200 for each subsequent offense thereafter.
The bill takes effect immediately and applies to sales and use tax collections remitted to the State on or after the first day of the sixth month next following the date of enactment.