SENATE BUDGET AND APPROPRIATIONS COMMITTEE

STATEMENT TO

SENATE, No. 711

STATE OF NEW JERSEY

DATED:  JUNE 24, 2026

      The Senate Budget and Appropriations Committee reports favorably Senate Bill No. 711.

      As reported, the bill amends current law to remove the transactional nexus requirement that is used to determine when:  (1) a remote seller is subject to the Sales and Use Tax Act and required to collect and remit sales tax to the State; and (2) 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 subject to 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.

      This bill removes the second criterion related to the number of transactions.  By eliminating this transactional nexus requirement, the bill provides that 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 the State exceeds $100,000 in 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.

      The bill removes the second criterion related to the number of transactions.  By eliminating this transactional nexus requirement, the

bill provides that corporations would only be subject to the CBT when the corporation’s receipts from sources within this State exceed $100,000 in the corporation’s fiscal or calendar year.

      This bill was prefiled for introduction in the 2026-2027 session pending technical review.  As reported, the bill includes the changes required by technical review, which has been performed.

FISCAL IMPACT:

      The Office of Legislative Services (OLS) expects this legislation will result in an annual State revenue loss, though the magnitude cannot be determined due to data limitations regarding remote seller and corporate transactions.

      The revenue reduction will be proportional to the number of sellers and corporations currently meeting only the 200-transaction threshold. Although the OLS is unable to determine the number of remote sellers and corporations that would be affected by the bill, the OLS notes that each remote seller affected by the bill would result in a reduction of no more than $6,625 in annual sales tax collections, with additional indeterminate reductions in corporation business tax collections from affected corporations.