New Jersey's Aligns with MTC for Guidance of PL 86-272 for Income Taxes

New Jersey’s tax agency has announced its alignment with the Multistate Tax Commission’s (MTC) guidance on the application of PL 86-272 for income taxes.

NJ is the second state behind California to adopt the MTC guidance on the federal level. While other states, NY and MN have floated drafts of proposed regulations/guidance. Additionally, while not officially announcing that they are following the guidance, Hawaii is effectively following the guidance for any seller over their $100k or 200 transaction threshold.

The guidance identifies certain internet activities, like post-sale customer assistance through electronic means and specific cookie usage, as activities that surpass the law's protections. The MTC guidance virtually eliminates the protections of PL 86-272. This directive will apply to tax periods ending on or after July 31, 2023.

You can read the full bulletin here.

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