New Jersey Assembly Bill A2705

New Jersey 2022-2023 Regular Session

• Introduced: 2/14/22
• Refer: 2/14/22

Caption

Allows 45 day extension for filing a return under the sales tax during state of emergency related to COVID-19 pandemic.

Impact

If enacted, A2705 would significantly impact state laws governing sales tax. By permitting businesses additional time to file and remit sales tax, the bill aims to provide a buffer to those who have experienced reduced revenue. Given the context of the ongoing pandemic, this measure reflects a legislative effort to support economic recovery by reducing compliance burdens and the financial strain on businesses. This could help stabilize local economies and prevent further financial distress among small and medium enterprises.

Summary

Assembly Bill A2705, introduced on February 14, 2022, proposes a measure aimed at alleviating the tax burden on businesses facing financial challenges due to the COVID-19 pandemic. Specifically, the bill allows a 45-day extension for filing sales tax returns and payments owed under the Sales and Use Tax Act. This extension is applicable during the period in which Executive Order No. 103 of 2020, declaring a state of emergency due to the pandemic, is in effect. The intent behind the bill is to provide essential relief to businesses struggling with cash flow disruptions caused by the pandemic.

Contention

While proponents of A2705 laud it as a necessary response to the financial difficulties arising from the pandemic, there may be concerns regarding the implications for state tax revenue during the extended period. Critics might argue that extending deadlines could lead to delays in tax collection, affecting state budgets. However, supporters emphasize the importance of supporting businesses and allowing them to navigate the challenges of the pandemic effectively. The bill stands as a testament to the legislative body's responsiveness to crises affecting state constituents.