Treatment of Out-of–State Businesses and Employees During a Declared Disaster or Emergency
P.L. 2019, Chapter 7 – This law, which was enacted and became effective on January 31, 2019, excludes certain out-of-State businesses and employees from certain taxes, fees, and business registration requirements when temporarily working in New Jersey during a declared disaster or emergency.
An out-of-State business that restores critical infrastructure during a declared disaster is not required to register, file, report and pay State or local taxes or fees that require the filing of a New Jersey tax return. Out-of-State employees, or their employers, are not required to report and pay State or local income taxes. However, when out-of-State businesses or employees purchase goods and services used in New Jersey, they must pay all associated taxes and fees. Examples of these taxes and fees are fuel taxes, Sales and Use Tax, occupancy taxes and fees, and motor vehicle rental taxes and fees.
An out-of-State business or employee that remains in New Jersey after the disaster period ends is subject to the State’s normal standards for establishing physical presence and doing business in this State. The business or employee will be responsible for any State or local tax liabilities or requirements to do business in this State.