An update on our previous coverage of affiliate nexus legislation in New Jersey: Word this morning that the New Jersey Assembly has passed A2608, a bill that would—at least temporarily—defer sales tax obligations for certain qualified persons who make “significant investments” and “create specified jobs” in the state. The bill amends the state’s sales and use tax definition of seller to allow qualified persons a temporary deferral from their sales tax obligation (regardless of their physical presence in New Jersey) to register as sellers with the State and to collect and remit sales tax.

There is a list of requirements that must be met in order for a qualified person to be eligible for the temporary deferral. Generally, the person must: (1) demonstrate to New Jersey that it does not engage in certain activities (meaning no more than operating a customer operations and processing facility—these are further defined in the bill); (2) demonstrate that the person meets or will make the necessary investments in and create the necessary jobs it will need to in the state (through an intention to create one or more customer operations and processing facility in the state; showing or making a $130M capital investment; creating or showing ability to create 1,500 full-time jobs; and maintaining those jobs for 59 months –all of these things to be shown or done by December 1, 2013); and (3) enter into an agreement with the Division of Taxation (to register as a seller and begin to collect sales tax due on New Jersey purchases on or before July 1, 2013).