NJPP NEW REPORT: Modernizing New Jersey’s Sales Tax Will Level the Playing Field & Help the Economy Thrive
NEW REPORT: Modernizing New Jersey’s Sales Tax Will Level the Playing Field & Help the Economy Thrive
Strengthening New Jersey’s ability to compete in the 21st century economy requires updates to a sales tax code that was designed and implemented before the rise of online shopping and a service-oriented economy, according to a new report released today by New Jersey Policy Perspective (NJPP).
New Jersey can modernize its sales tax and raise revenue required to invest in public services by:
- Broadening the tax base to include more services
- Adopting a remote sales tax law
- Closing the online hotel tax loophole
- Repealing the yacht sales tax
- Last but not least, returning the tax rate to 7 percent
“Thanks to the 2016 sales tax cut, that $2 morning coffee now costs two cents less, but the cost to our nearly-bankrupt state is great,” said Sheila Reynertson, NJPP Senior Policy Analyst and author of the report. “Not only is it time to reverse this token tax cut, it is time to modernize the sales tax code to reflect the popularity of online shopping and today’s service-oriented economy.”
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