ssutanotice.pdf - NOTICE(REVISED New Jersey Enacts...

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NOTICE (REVISED 10/18/05) New Jersey Enacts Streamlined Sales and Use Tax Agreement Legislation (P.L. 2005, c. 126, amending N.J.S.A. 54:32B-1 et seq.) Effective October 1, 2005 Through the enactment of Public Law 2005, chapter 126, New Jersey joined a national coalition of states in conforming the New Jersey Sales and Use Tax Act to the provisions of the Streamlined Sales and Use Tax Agreement (SSUTA). The SSUTA was developed over the course of several years through the joint effort of over forty states participating in the Streamlined Sales and Use Tax Project. The underlying purpose of the Agreement is to simplify and modernize the administration of the sales and use tax laws of the member states in order to facilitate multi-state tax administration and compliance. The provisions of the new law were effective on October 1, 2005. The Agreement provides for uniformity in the following areas: each state and their local jurisdiction’s tax bases; major tax base definitions; sourcing of taxable transactions. It also contains simplifications in the areas of: centralized vendor registration system; administration of exemptions; tax returns and remittances. The following information summarizes the more significant changes made to the New Jersey Sales and Use Tax Act in order to be in compliance with the provisions of the SSUTA. For purposes of this Notice, the law that was in effect through September 30, 2005 is referred to as the “prior law.” LIBRARY OF DEFINITIONS A major part of the simplification effort of the SSUTA is the requirement that each member state adopt the uniform product definitions developed by the Project, which will ease the compliance burden on multi-state vendors. Although each state must use the same definition for the defined terms, each state remains free to either impose tax or to provide an exemption for all products within a definition. Many terms were not previously defined in New Jersey law, so a new statutory definition may result in changes to the taxability of specific products. The most significant new definitions are as follows: Candy ” is defined as a preparation of sugar, honey, or other natural or artificial sweeteners in combination with chocolate, fruits, nuts or other ingredients or flavorings in the form of bars, drops, or pieces; candy does not include any preparation containing flour or requiring refrigeration. (N.J.S.A . 54:32B-8.2 (c))

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