TRENTON – A bill that would allow Amazon.com, or another similar online retailer, to temporarily suspend sales tax collection in exchange for capital investment and job creation in New Jersey passed the Assembly today by a 70-7 vote with three abstentions.
Amazon is planning to potentially establish a physical presence in New Jersey.
The sales tax holiday would be in exchange for a $130 million capital investment in the state and creates 1,500 full time jobs. The sales tax exemption would be in effect until July 2013.
Currently, online sellers who are not physically in New Jersey do not collect a 7 percent sales tax.
The proposal for Amazon to establish a physical presence in New Jersey yet receive a sales tax deferral period has been criticized by in-state retailers.
Assemblyman Albert Coutinho (D-20), Newark, is the sponsor of the bill, A2608. A Senate version of the bill was held last week in a Budget and Appropriations Committee meeting.
The Assembly also passed AR69, a resolution urging Congress and the President to enact legislation that authorizes states to require remote, out-of-state sellers to collect and remit its sales tax to in-state consumers as a means to level the playing field between in-state and remote, out-of-state sellers. AR69, also sponsored by Coutinho, passed by a 64-7 vote, with nine abstentions.