- Proposal to Eliminate Transaction Threshold: New Jersey is proposing to abolish the 200-transaction threshold for economic nexus, shifting tax obligations to be based solely on gross revenue, which aims to simplify sales tax compliance for businesses.
- Addressing Inefficiencies: The current 200-transaction rule has created unnecessary complexities for small businesses and allowed high-value sellers to evade taxes, while the proposed $100,000 revenue-only threshold aims to eliminate these loopholes, promoting a fairer tax system.
- Impact on Compliance and Interstate Commerce: A revenue-only model is expected to reduce administrative burdens and compliance costs for businesses, particularly in the digital economy, as states are likely to reevaluate their nexus rules in 2025 to ensure stable revenue collection.
Source Taxually
