On April 1, 1986 New York and New Jersey established a Border Sales Tax Agreement. This agreement affects any vendor who:

• Is registered to collect sales tax in his home state of New York or New Jersey;
• Has taxable transactions across the New York/New Jersey border; and
• Does not have a physical place of business in the neighbor state.

There are many benefits afforded to a vendor choosing to participate in this program. The vendor registers for this program by filing only one application with his home state. The vendor files one tax return with his home state and attaches one payment for the combined tax due to both states. Also, there is the benefit of customer goodwill. Customers of participating businesses will pay the New York or New Jersey sales tax due to the vendor they are purchasing from. Finally, participating vendors will be eligible to use the neighboring state's exemption certificates for purchases made in the neighboring state which are covered by such certificates.

It is important that a vendor be aware of his responsibilities to both states for his own protection. The courts have held that the absence of a physical location in a neighboring state does not relieve the vendor of tax liability to that state. Vendors shipping over the New York/New Jersey border may be held liable for the full amount of the tax due on all goods shipped into that state.

To participate in this program, New Jersey vendors should complete an Application for New Jersey and New York Simplified Sales and Use Tax Reporting. If you have questions concerning this agreement contact the New Jersey Division of Taxation, PO Box 264, Trenton, New Jersey, 08695-0264 or call (609) 588-3764.