New Jersey Officials Impose New Tax Law On Online Purchases
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TRENTON, N.J. (CBS) — New Jersey residents better start overturning couch cushions as state officials announce a new tax law.
A new sales tax imposed on online retail purchases is now in effect as of Thursday.
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The new law, A-4496, will require certain remote sellers and online marketplace businesses to collect and remit sales tax. New Jersey has a 6.625 percent state sales tax.
That means buying things from eBay or Amazon will become more expensive than previously were for shoppers.
A seller must collect taxes if it does not have a physical presence in New Jersey. If a seller gains revenue from sales in the Garden State during the year or the previous years that amounts to more $100,000 then the tax will apply to them, according to lawmakers.
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Sellers that have more than 200 transactions in the year or the prior year will also be subject to the new tax.
The law also addresses how taxes are collected from hotels and other accommodation-based services such as Airbnb. However, travel agents and travel agencies will not be effected by the tax.