TRENTON – A group of Democratic lawmakers wants to address the disparity between bricks-and-mortar businesses in New Jersey and online retailers with little or no true in-state presence.
Albert Coutinho, Vincent Prieto, Troy Singleton and Lou Greenwald said today that they have introduced legislation – A2608- that would allow an online retailer to temporarily suspend sales-and-use tax collection in exchange for capital investment and job creation.
Many online sellers who lack a physical presence in-state don’t charge the 7 percent sales tax, angering traditional in-state businesses who argue they are at a major disadvantage.
Such online businesses qualifying under the bill would be required to compete under the same rules as existing New Jersey retailers once the exemption expires.
The bill is spurred in part by Amazon.com, which is looking to move to New Jersey.
The bill would also update state law regarding sales tax collection by internet retailers that have affiliates located within the state.
“With job creation a top priority, we’re certainly interested in any plan that brings 1,500 sustainable and accessible jobs to New Jersey and protects taxpayers and retailers,” said Coutinho, the Assembly Commerce and Economic Development chairman. “We’ve been having productive discussions and developed this well-rounded legislation that benefits everyone. We need jobs, economic growth and a level playing field, and we get all three with this bill.”