Bergen bill grants small businesses credits for sales tax collection

Assemblyman Brian Bergen

MORRIS COUNTY — Assemblyman Brian Bergen introduced legislation to give small businesses credit for collecting and remitting sales tax to the state.

“The state expects our small businesses to collect, manage, file and remit sales taxes all at their own expense. It’s time that costs associated with doing the state’s revenue collection work is paid for by the state and not forced on the small business,” said Bergen (R-Morris). “Small businesses are responsible for half the jobs in New Jersey. We have to do what we can to keep jobs in the state and help these employers.”

According to the Small Business Administration, New Jersey small businesses employ 1.8 million people. More than 90 percent of small firms were responsible for generating about 40 percent of New Jersey’s $27.4 billion in total exports in 2016. The state has more than 884,000 small businesses with about 19 percent of those businesses employing less than 20 workers.

Under Bergen’s bill, businesses with less than 20 full-time employees would be able to get a credit of 10 percent of their monthly remittance of sales tax or $100 per month, whichever is less, when they file their sales and use tax return.