Sales tax collection bill uncertainties lead to tie vote

TRENTON – Concerns over uncertainties in a sales-tax collection bill led to a tie vote and a call for future clarification at the Sales and Use Tax Review Commission today.

The Commission split 3-3 on S1305, a bill that would expand the number and kinds of businesses that would be responsible for collecting the sales tax.  

Matthew Cheng, the president of E Coupons, an independent company that does advertising for retailers such as Amazon and Best Buy, said this bill would have far-reaching consequences if agents such as his company are eventually deemed to be responsible for the sales tax.

“In other states (where this has been done), it leads to contract termination when the independent contractors are deemed the nexus for sales tax collection,” he told the commission.

The Commission reported that the Office of Revenue and Economic Analysis could not provide an estimate on this proposal, and said regulations would have to be promulgated if this bill passed, in part because it is too early to tell exactly who this bill would apply to.

Michael Bryan, of the Taxation division, said the Administration believes there could be a federal solution to this problem, and that this bill is not necessarily the direction they would want to pursue.

Earlier story:

Limo service sales tax exemption bill opposed

 

Sales tax collection bill uncertainties lead to tie vote