- New Jersey proposes eliminating the 200-transaction threshold for economic nexus.
- This change would base tax obligations on gross revenue, aligning with actual economic activity.
- The 200-transaction rule has proven inefficient, creating complexity for small businesses and loopholes for high-value sellers.
- New Jersey’s $100,000 revenue-only threshold would remove this loophole, creating a fairer and simpler system.
- A revenue-only model reduces administrative burdens for businesses and ensures states collect taxes fairly.
- Standardizing sales tax laws could simplify operations for businesses, particularly in the digital economy.
- More states are expected to reevaluate their nexus rules in 2025.
Source: taxually.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
