Wayfair’s Impact on New Jersey
November 05, 2018
Partner-in-Charge of EisnerAmper’s SALT practice, Gary Bingel, discusses the tax impact of the historic Wayfair decision on NJ, including a pair of key provisions regarding the tax threshold for remote sales or number of transactions, along with what constitutes an online marketplace facilitator.
Essentially, anyone with remote sales of $100,000 or more or 200 or more transactions is now subject to sales tax in New Jersey and its collection responsibilities. Originally, that was to take effect on October 1, 2018, but the legislation delayed it until November 1. The second part of the legislation requires marketplace facilitators to also collect sales tax in New Jersey on all remote sales.
Marketplace facilitators are essentially anyone having anything to do with online sales other than the seller themselves. It encompasses not just what you would normally think of as a marketplace facilitator, such as Amazon or Etsy, but it was written so broadly as to encompass other types of "facilitators" such as entities like Angie's List, Facebook or Pinterest. As long as there was any sort of compensation or you have anything to do with connecting buyers and sellers and you receive any sort of money or compensation for that, you could fall under these provisions.