Nexus for Sales and Use Tax 

                                 TB-78(R) – Issued August 13, 2015 
                                                                    Tax: Sales and Use Tax 
                                                                                                      
This Technical Bulletin provides general guidelines for determining whether the activities of a 
person create nexus with New Jersey for Sales and Use Tax purposes. 
 
DEFINITIONS 
“Nexus” means some definite link, some minimum connection, between the State and the entity 
it seeks to tax. 
 
“Person” includes an individual, trust, partnership, limited partnership, limited liability company, 
society, association, joint stock company, corporation, public corporation or public authority, 
estate, receiver, trustee, assignee, referee, fiduciary, and any other legal entity. 
 
“Seller” includes a person maintaining a place of business in the State or having an agent 
maintaining a place of business in the State and making sales, whether at such place of business 
or elsewhere, to persons within the State of tangible personal property, specified digital 
products, or services, the use of which is taxed by the Sales and Use Tax Act. 
 
SALES TAX NEXUS 
The U.S. Supreme Court has ruled that the Commerce Clause of the U.S. Constitution requires a 
person to have a physical presence in a state before the state can impose its Sales Tax 
jurisdiction. 
 
A person who has physical presence in New Jersey and sells taxable items or services must 
register and collect and remit Sales Tax whenever such sales are completed by delivery of the 
item(s) to a New Jersey location or when performance of the service is within this State. 
 
NEXUS-CREATING ACTIVITIES 
Activities occurring in New Jersey that create nexus for Sales Tax purposes include, but are not 
limited to: 
 
1. Selling, leasing, or renting tangible personal property, specified digital products, or services; 
 
2. Maintaining an office, distribution house, showroom, warehouse, service enterprise (e.g., 
restaurant, entertainment center, business center, etc.), or other place of business; 
 
3. Having employees, independent contractors, agents, or other representatives (including 
salespersons, consultants, customer representatives, service or repair technicians, instructors, 
delivery persons, and independent representatives or solicitors acting as agents of the business) 
working in the State; 
 
4. Selling, storing, delivering, or transporting energy (natural gas or electricity) to users or 
customers; 

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5. Collecting initiation fees, membership fees, or dues for access to or use of health, fitness, 
athletic, sporting, or shopping club property or facilities; 
 
6. Parking, storing, or garaging motor vehicles; 
 
7. Delivering goods sold in seller’s own vehicle. 
 
CLICK-THROUGH NEXUS 
N.J.S.A. 54:32B-2(i)(1) creates a rebuttable presumption that an out-of-State seller that makes 
taxable sales of tangible personal property, specified digital products, or services, is soliciting 
business and has nexus in New Jersey if that seller meets the following conditions: 
 
1. The seller enters into an agreement with a New Jersey independent contractor or other 
representative for compensation in exchange for referring customers via a link on its website, or 
otherwise, to that out-of-State seller; and 
 
2. The seller has sales from these referrals to customers in New Jersey in excess of $10,000 for 
the prior four quarterly periods ending on the last day of March, June, September, and 
December. 
 
An out-of-State seller that meets both of these conditions is presumed to be soliciting business 
and has nexus with New Jersey. The out-of-State seller must register for Sales Tax purposes and 
collect and remit Sales Tax on all sales delivered to New Jersey. 
 
Because the law creates a rebuttable presumption, the out-of-State seller may provide proof 
that the independent contractor or representative did not engage in any solicitation on their 
behalf in New Jersey. The burden is on sellers to prove that they are not required to collect and 
remit Sales Tax. 
 
REGISTERING FOR SALES TAX PURPOSES 
A seller that has nexus with New Jersey must register and collect and remit Sales Tax on all 
taxable sales that occur within this State. The Business Registration Application (Form NJREG) 
can be filed online through the Division of Revenue and Enterprise Services’ NJ Business 
Gateway Services website at http://www.state.nj.us/treasury/revenue.  
 
MORE INFORMATION 
For more information, see Technical Bulletin 76 “Presumption of Soliciting Business in New 
Jersey by Out-of-State Seller,” http://www.state.nj.us/treasury/taxation/pdf/pubs/tb/tb76.pdf,  
Publication S&U-5, “Making Mail-Order and Internet Sales,” 
http://www.state.nj.us/treasury/taxation/pdf/pubs/sales/su5.pdf, and Publication ANJ-10 “Out of 
State Sales & New Jersey Sales Tax,” 
http://www.state.nj.us/treasury/taxation/pdf/pubs/sales/anj10.pdf 
 
Note: A Technical Bulletin is an informational document designed to provide guidance on a 
topic of interest to taxpayers and describe changes to the law, regulations, or Division policies. It 

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is accurate as of the date issued. However, taxpayers should be aware that subsequent changes 
in the tax law or its interpretation may affect the accuracy of a Technical Bulletin. The 
information provided in this document does not cover every situation and is not intended to 
replace the law or change its meaning. 

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