TRENTON, N.J. – As non-essential businesses around the state remain shuttered and other businesses operate within limitations due to the coronavirus pandemic, Assemblyman Ron Dancer introduced a bill giving them an extension on filing their sales tax returns and remitting payment to the state.
“Businesses that are able to open during this crisis are still struggling to make ends meet,” said Dancer (R-Ocean). “They need what cash flow they have just to get by and pay the employees they still have on their payroll. Giving them a 45-day extension to file their sales tax returns will give them much-needed relief until we can safely return to normal operations.”
Dancer’s bill (A3937) gives businesses a 45-day extension for filing a sales tax return during the state of emergency related to the COVID-19 pandemic.
“Grant and loan programs offered by the state can’t keep up the pace with what is really needed. Allowing businesses to keep what sales tax they collect for a month and a half doesn’t cost the state anything and can help businesses get through these unprecedented times,” explained Dancer.
Demand for the Economic Development Authority’s grant and loan programs to assist small businesses in the state is exceeding what the agency can provide. Within one hour, NJEDA’s Small Business Emergency Assistance Grant Program was oversubscribed and within a week, it received more than 30,000 applications. The program only has enough funding to support about 1,400 grants averaging $3,500.
Under current law, sales tax returns must be filed with the Division of Taxation on a quarterly basis and payments of sales tax collections must be made on either a quarterly or monthly basis depending on how much a business collects in a year. Monthly payments and quarterly returns are due on the 20th day of the month after the end of the filing period.
On Tuesday, the governor granted taxpayers in the state a three-month extension to file their state income taxes, pushing Tax Day to July 15.
Dancer’s bill has been referred to the Appropriations Committee.