ASSEMBLY, No. 2774

STATE OF NEW JERSEY

INTRODUCED MARCH 3, 1997

By Assemblymen GREGG, DeSOPO, Caraballo, Greenwald, LeFevre, Malone, Impreveduto, Weingarten, Talarico, DeCroce, Kramer, Azzolina, Bagger, Corodemus, Augustine, Cohen, Jones, Assemblywoman Buono, Assemblymen Blee, Bodine, Carroll, Assemblywomen Crecco, Myers, Assemblymen Rocco, Bateman, Garrett, Bucco, Assemblywoman J. Smith, Assemblymen Holzapfel, Asselta, Gibson, DiGaetano, Assemblywomen Murphy, Heck, Assemblymen Wolfe, Barnes, Assemblywoman Allen, Assemblymen Cottrell, Moran and Green

An Act allowing vendors to retain a percentage of the sales tax collected, supplementing P.L.1966, c.30 (C.54:32B-1 et seq.).

    Be It Enacted by the Senate and General Assembly of the State of New Jersey:

    1. The director shall allow to each person required to collect tax under P.L.1966, c.30 (C.54:32B-1 et seq.), and who has complied with all the provisions of the act, including any rules or regulations made or adopted by the director, a discount of 1% of the tax collected by such person, as consideration for collecting and promptly remitting the same.

    2. This act shall take effect July 1 next following its enactment.

STATEMENT

    This bill allows to persons required to collect sales taxes a discount of 1% of the taxes collected as consideration for collecting and promptly remitting the taxes. According to the American Retail Federation, the cost of compliance with sales tax laws involves five elements: collection, reporting, payment, auditing and miscellaneous. These include item identification; point-of-sale (POS) equipment, either purchase, rent or lease, and maintenance; POS programming; training costs; paper work-bank deposits, store reports, tax filings, accounting, etc. The States of New York, Pennsylvania and Maryland allow for a retail discount for collecting state sales taxes.

Allows vendors to retain 1% of sales tax collected as consideration for collecting and promptly remitting the same.