TRENTON, N.J. — If you’re an early Christmas shopper?
And you purchased something from Amazon, eBay and Etsy on November 1st?
You might have noticed a higher-than-usual price tag.
That’s because Governor Phil Murphy signed a bill into law on Thursday subjecting online purchases to New Jersey’s sales tax effective immediately.
What does it mean? New Jersey and other U.S. states were previously barred from compelling online retailers to collect sales tax in the event that they lacked a physical presence in the taxing state. Then, in June 2018, the U.S. Supreme Court decided South Dakota v. Wayfair, ruling that states can, in fact, collect sales tax from the previously exempt online retailers.
The floodgates are now open.
Brick and mortar stores suffering from technological changes in how people shop are hopping for a boost, but manyeconomists agree that any short-term benefit will only forestall, at best, the inevitable.
What’s the real world impact? A New Jerseyan who spends $100 on a Christmas present purchased ****online**** from a company based only in Pennsylvania or New York will soon pay more since said company must now collect New Jersey’s 6.625% sales tax on the order. It works out to $6.25 per $100 order. Those spending hundreds or thousands of dollars online this holiday season could see the dollars add up.