New Jersey reported that it collected approximately $1.33 billion in Sales and Use Tax during August 2026, 14.3% more than during August 2025. Because sales tax payments are reported with a one-month delay, the August figure principally reflects July business activity.

Higher collections do not necessarily mean that audits produced the increase. However, the report demonstrates how important sales tax is to New Jersey’s budget. At Tomes Law Firm, we have also seen increasing sales tax audit activity involving restaurants, retailers and other businesses.

A sales tax audit can extend well beyond checking whether returns were filed. The auditor may compare the business’s reported sales with:

• Bank deposits and credit-card processing statements
• Point-of-sale records
• Federal and New Jersey tax returns
• Third-party purchase information
• Exemption and resale certificates
• The owner’s books and accounting records

When those records do not reconcile, the Division of Taxation may estimate sales and assess additional tax, penalties and interest. In our experience, good records can make an enormous difference. One restaurant client whose records supported its point-of-sale information completed an audit with less than $5,000 in exposure. Another business without reliable records or a point-of-sale system faced a six-figure assessment after the State used third-party purchase information to estimate sales.

Business owners should not wait for an audit notice. Sales tax returns should be reconciled periodically with the books, bank deposits and payment-processing reports. Exemption certificates and supporting records should also be preserved.

If your business has received a New Jersey sales tax audit notice, obtaining professional advice early can help identify discrepancies, organize the necessary records and address problems before the State issues a final assessment.

Source: New Jersey Department of the Treasury, September 16, 2026