Reed Smith Client Alerts

As part of Governor Murphy’s efforts to “modernize” business taxes,1 New Jersey enacted sweeping changes to its corporation business tax (“CBT”), including combined reporting and market sourcing for services.Yesterday, Governor Murphy signed two bills into law that further change the business tax landscape: A4495, which provides additional changes to the CBT; and A4496, which imposes sales and use tax on remote sellers and marketplace facilitators in light of the Supreme Court’s decision in South Dakota v. Wayfair.3

Authors: David J. Gutowski Jonathan E. Maddison Matthew L. Setzer

Background

As originally enacted, New Jersey’s combined reporting law contained a number of ambiguities.  The New Jersey Legislature addressed some of these ambiguities by passing a “technical corrections” bill, which was designated as A4495. Yesterday, Governor Murphy signed A4495 into law. The new law provides more than mere technical corrections, however, and includes a number of substantive changes. Below is an overview of A4495’s substantive and technical corrections, as well as a summary of the marketplace facilitator bill (A4496) that Governor Murphy also signed into law.