New Jersey Conforms to Streamlined Agreement, Gains Associate Member Status.

On July 2, 2005, the New Jersey Division of Taxation approved Chapter 126, Assembly Bill 3473, which will place New Jersey in conformance with the Streamlined Sales and Use Tax Agreement on October 1, 2005, when the bill takes effect. Provided in this bill are definitions necessary to place New Jersey in compliance with the provisions of the Agreement, accomplished through a series of amendments to existing definitions, along with the addition of new definitions. Included in the bill are specific sourcing rules that apply to the leasing or rental of tangible personal property, sourcing rules for telecommunications, and information regarding model 1, 2, and 3 sellers, among other things. Although this bill was not officially approved until July 2, 2005, the June 30, 2005 passing of Ch. 126, A3473 by both the House and Senate enabled the SSTP Petitioning States to vote on and approve New Jersey’s membership in the Agreement. New Jersey now qualifies as an associate member of the Agreement and will gain full membership status on October 1, 2005, when its conforming legislation comes into effect. (New Jersey Division of Taxation, Chapter 126, Assembly Bill 3473, effective as noted above).

Posted on September 7, 2005