New Jersey proposes switch to market sourcing for service receipts

A proposed New Jersey regulation would institute market-based sourcing for receipts from the sale of services, effective for tax years beginning on or after January 1, 2014. Market-based sourcing for services would thus coincide with the complete phase-in of the state’s single sales factor apportionment formula. Even though the regulations are effective prospectively, taxpayers may inquire whether the Division of Taxation would consider application of market-based sourcing before 2014. [N.J.A.C., Proposed New Sec. 18:7-8.10A, New Jersey Register, Vol. 45, No. 8 (4/15/13)]

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