NJ Bill Would Let Some Food Businesses Retain Sales Tax

New Jersey would grant some qualifying food and beverage establishments a temporary deduction allowing them to retain a portion of sales tax as a response to the coronavirus pandemic, under a bill introduced in the state Assembly.

A.B. 5710, which Assembly Member Serena DiMaso, R-Holmdel, introduced Monday, would allow food and beverage establishments to deduct from their remittances the sales tax from up to $70,000 in taxable sales each month over a four-month relief period. The deduction could be claimed by a business for up to five locations. Qualifying businesses include breweries, wineries, distilleries, brew pubs, and restaurant and food establishments. The deduction would not apply to fast-food chains.

The four-month relief period during which the deduction could be claimed would begin the first day of the second month following the date of enactment, according to the bill.

--Editing by Vincent Sherry. 

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