A recent bill in New Jersey aims to reduce the tax burden on smaller merchants by removing the 200-transaction requirement from the state’s sales tax and corporation business tax nexus thresholds. Mike Puzyk and Paul Buonaguro, attorneys from our Tax and Benefits team, note that while the bill provides relief for out-of-state sellers, it does not address the gross income tax nexus for pass-through entities and sole proprietors, which could cause confusion. This discrepancy between different tax types may lead to inadvertent noncompliance for small businesses. Mike and Paul recommend that the New Jersey legislature consider establishing uniform nexus standards and clarifying existing distinctions to ensure fairness and ease compliance.
1.14.2025