Eliminates transaction nexus requirement under Sales and Use Tax and Corporation Business Tax.

S711 SBA Statement 6/24/26

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.