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.

Transcript

Gary Bingel: Hi, I'm Gary Bingel, the Partner-in-Charge of State and Local Taxes here at EisnerAmper, and I want to give you a brief update on current developments in New Jersey regarding the Wayfair decision and the taxation of Internet sales. On October 4, 2018, the governor signed legislation regarding Internet sales and remote sellers and marketplace facilitators. Really, there were two provisions in the bill. The first one was regarding Internet sales and remote sellers, and it imposes tax on all remote sellers in accordance with the Wayfair decision.

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.

About Gary Bingel

Gary Bingel's expertise focuses on state and local income taxation, and sales and use tax consulting. He has significant experience serving clients in the manufacturing, retail, pharmaceutical, biotechnology, technology and service industries.

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