Reciprocal Agreement Between New Jersey and New York for Simplified Sales and Use Tax Reporting is Ending
October 12, 2010
The 1986 Reciprocal Agreement between the State of New Jersey and the State of New York providing for simplified sales and use tax reporting ("Reciprocal Agreement") is ending. As a result, a New Jersey sales and use tax return (ST-50) will be due from New York-based filers; and, a New York return (ST-100 or ST-810) will be due from New Jersey-based filers.
For New York-based filers:
- Schedule NJ for New York Vendors to Report New Jersey Sales Tax (NYS ST-100.4, ST-809.4, ST-810.4 and ST-101.4) will no longer be used to report New Jersey sales and use taxes.
- Quarterly filers: the last sales tax return filed under this agreement will be Form ST-810.4 for the period ending November 30, 2010. Note that unlike New York, the New Jersey sales tax quarters are calendar quarters. The first New Jersey quarterly return (ST-50) is due January 20, 2011, for activity during the quarter ended December 31, 2010.
- Monthly filers: the last sales tax return filed under this agreement will be Form ST-810.4 for the period ending November 30, 2010. The first New Jersey sales and use tax return for New York State-based monthly filers will be the return filed for the month of December 2010 and is due on January 20, 2011.
- The New Jersey Division of Taxation has phased out the use of paper Sales and Use Tax returns. Monthly (ST-51) and quarterly (ST-50) returns must be filed online or by phone. Details are available at www.state.nj.us/treasury/taxation/.
Example: A New York-based quarterly filer participating in the program would file:
- The Schedule NJ to report New Jersey sales tax, for the period ended November 30, 2010;
- The New Jersey Form ST-50 for the period ended December 31, 2010 – due January 20, 2011 and filed online or by phone; and
- The New York Form ST-100 quarterly return for the period ended February 28, 2011– due March 20, 2011; and
- The New Jersey Form ST-50 for the period ended March 31, 2011 – due April 20, 2011.
For New Jersey-based filers:
- New York return (ST-100 or ST-810) will be due for the Month ended December 31, 2010, due January 20, 2011; or, for the Quarter ended February 28, 2011, due March 20, 2011.
- New Jersey Form ST-50 will also be due for the calendar Quarter ended December 31, 2010 and thereafter.
For both New Jersey and New York based filers:
- Repeat the process filing separate quarterly returns.
- A monthly filer would file monthly in both states.
For information from the New York State Department of Taxation and Finance, please review their September 2010 Notice on the program.
Note: Neither New Jersey nor New York State has issued explicit instructions that would require filing an initial sales and use registration form in the other state (e.g. NJ-REG; and NYS Form DTF-17). Further guidance on this formality may be forthcoming.