New Jersey Reduces Business Formation Fees
New Jersey has enacted legislation, effective July 1, 2026, reducing certain business formation fees by $25. The reduction applies to filings such as certificates of incorporation and certificates of authority. Martin D. Hauptman, Esq., Partner in our Tax, Trusts, and Estates Practice Groups, outlines what businesses should know.
New Jersey imposes new fees and regulations for data brokers, data collectors
On June 30, 2026, Governor Mikie Sherill signed legislation imposing significant new regulations and fees on both data brokers and data collectors. The law, L. 2026, A5328 (c. 25), is effective June 30, 2026, except as otherwise stated, and creates new restrictions on sensitive data processing, registration obligations, fee requirements, and penalties.
What Changed
The law prohibits data brokers and data collectors from collecting, processing, and selling certain categories of sensitive data. Sensitive data includes personal data revealing racial or ethnic origin, religious beliefs, mental or physical health conditions, treatment or diagnosis, financial information, sex life, sexual orientation, citizenship or immigration status, genetic or biometric information that may be processed for the purpose of identifying an individual, and location data. The penalty for processing sensitive information is $50,000 per record.
Effective 270 days after June 30, 2026, or March 27, 2027, the Division of Consumer Affairs in the Department of Law and Public Safety must establish and maintain a public registry of data brokers and data collectors engaged in processing personal information of New Jersey consumers. The registry must include the data broker’s or data collector’s name and physical address, a general email address that may be used to request information about privacy policies and data collection practices, and any relevant opt-out information.
Who Is Impacted
Data brokers and data collectors subject to the law are directly affected. A data broker is defined as a person or legal entity, including, but not limited to, a controller, that knowingly collects or purchases the personal data of a consumer with whom the person or legal entity does not have a direct relationship and sells that data to a third party. A data collector is defined as a business or unit of a business that knowingly collects the personal data of a consumer with whom the data collector has a direct relationship and sells or licenses such personal data to a data broker.
Key Registration Fees
The law also requires data brokers and data collectors to register and pay fees based on the number of New Jersey consumers from whom data is collected. Those fees are as follows:
| Number of consumers in New Jersey that data is collected from | Fees |
|---|---|
| No more than 100,000 consumers | $ 5,000 |
| More than 100,000 consumers and fewer than 500,000 consumers | $ 10,000 |
| More than 500,000 consumers and fewer than 1,000,000 consumers | $ 100,000 |
| More than 1 million and fewer than 1.5 million consumers | $ 500,000 |
| More than 1.5 million and fewer than 2.5 million | $ 750,000 |
| More than 2.5 million and fewer than 4.5 million | $ 1,000,000 |
| More than 4.5 million consumers | $ 1,500,000 |
Moving Forward
Businesses that fall within the definitions of data broker or data collector should begin evaluating their compliance obligations now, including registration requirements, privacy disclosures, and whether any personal information they collect or sell may be considered sensitive data under the law. Violations can result in significant penalties, including fines of up to $50,000 per record for processing sensitive data and $2,500 per day for failing to submit or update required registration information.
Next Steps
Businesses that collect, purchase, sell, or license personal data involving New Jersey consumers should review whether they qualify as a data broker or data collector under the new law, assess any sensitive data practices, and determine whether registration and fee obligations apply. Early review and planning may help reduce compliance risks and avoid significant penalties.
For guidance on how this legislation may impact your business, contact Martin D. Hauptman at mhauptman@mblawfirm.com or 973-243-7912.