Legislation would tax a broad range of services. The taxing of additional services allows the state to increase revenues without having to raise the sales and use tax rates, a fiscal solution for the state that is more readily acceptable to Taxpayers.

Sales tax would be imposed on the following services:

1. storage space rentals;
2. courier and messenger services;
3. tanning services;
4. tattooing services;
5. massage services;
6. initiation, membership fees, or dues in connection with the use of health and fitness, athletic, or sporting clubs;
7. air commerce or air transportation originating and terminating in New Jersey ;
8. limousine services originating in New Jersey ; and
9. surety bond services in connection with posting bail.

In addition, the legislation would add several amendments to the sales tax laws that would impose sales and use tax on the sale of digital goods, eliminate the exemption for separately stated shipping and handling charges, provide guidelines that would treat New Jersey affiliates of remote sellers as agents of the remote sellers for tax collection purposes, and provide related definitions.

If you would like additional information on this topic or have any questions, please contact the taxdesk@thesaltgroup.com