New Jersey introduced A4100, a bill that would impose a 5% assessment on gross receipts from video streaming entertainment services. The charge applies to streaming providers whose annual New Jersey gross receipts meet or exceed $250,000. The bill would require streaming entertainment providers to prepare an annual financial report detailing gross receipts from video streaming services. Cable service providers are excluded from this bill. The bill structures this obligation as a gross receipts tax rather than a traditional sales tax.

The bottom line: If you provide video streaming services to New Jersey customers and your annual in-state receipts reach $250,000, this assessment applies to your gross receipts from those covered services. Streaming providers should review their New Jersey revenue figures now and prepare compliance systems if this bill passes.