New Jerseyans are the most heavily taxed residents in the nation, paying 11.8 percent of their per capita income for state and local taxes, according to a new study by the Tax Foundation. New Jerseyans pay an average of $6,610 per capita. While this is the third straight year New Jersey topped the tax chart, the state and local tax burden did drop a tenth of a percent from 11.9 percent in 2007.

The study shows that just as high taxes make running a business difficult in New Jersey (the same Tax Foundation ranked New Jersey's business-tax environment second worst in the nation last year), they also impact businesses organized as pass-through entities such as S corporations and LLCs. As well, they make it difficult for companies to attract skilled workers who may be disinclined to move to such a high-tax State.

NJBIA Says Limit DEP's Public Access Rule

Legislators should limit the impact of new public access rules to the State's bathing beaches instead of all tidal waterways, NJBIA told the Senate Environment Committee on August 7. NJBIA testified in favor of legislation to rein in new public access rules, adopted by the NJ Department of Environmental Protection (DEP) last December, that require any property owner along any tidal waterway to provide public access to it through their property or pay to have that access provided elsewhere.

NJBIA Vice President David Brogan told the committee it was impractical and unsafe to give the public access to properties occupied by energy plants, ports, chemical plants, refineries, and military installations. He said the rules should exempt areas adjacent to critical infrastructure because many of these facilities are prohibited by homeland security laws from allowing the public on their properties. For others, such public access is simply not safe. Brogan said the broad reach of the new DEP rules was no accident. "The DEP understood that such facilities could not provide the access required under the rule," Brogan said. "The department’s solution was to require those facilities to pay for access off-site. This amounts to a new tax on any facility located in the areas covered by the rule."

The rule also impacts smaller businesses, such as marinas. Marinas are required to provide the same access through their properties 24 hours a day, even though they have a responsibility to protect the personal property of the people who moor their boats there. All costs associated with compliance, liability, insurance, and security must be absorbed by the marina owners.

Brogan said the Association supports S-1921 (Ciesla, Van Drew), which would prohibit the DEP from mandating public access to tidal waterfront areas at energy facilities, ports, chemical plants, refineries, and military installations. It would also prohibit the DEP from requiring such facilities to pay for off-site access. NJBIA also supports S-1553 (Ciesla, Van Drew), which would place a temporary moratorium on the Public Access rule as it pertains to marinas and create a task force to look into the impact this rule will have on this industry. That bill has passed the Legislature and is awaiting action by Governor Jon Corzine.

Brogan added that the public access rule is a perfect example of a DEP rule-making process that has grown out of control. He said legislative involvement is needed to make the process rational and reasonable. "We must balance the desire for public access with the security of facilities that, if compromised, could have potentially disastrous results," Brogan said. "We must question rules that place unnecessary financial burdens, or what are tantamount to new taxes, on New Jersey companies, especially during times of economic instability."

To learn more about the DEP's Public Access Rule and other environmental regulations, visit NJBIA's Environmental Issues Web page or contact David Brogan at 609-393-7707, ext. 236.

Great NJBIA Events Coming This Fall

Summer's almost over, and NJBIA is gearing up for a busy fall with great events to keep you plugged in, ahead of the curve and on top of things. NJBIA is presenting a new seminar on how to comply with the State’s new paid family leave law, which takes effect January 1. Other seminars will tell you how to get the best deal on health insurance and manage your energy costs.

Find out what our State’s top government leaders are doing that will impact your business. Join us for Meet Assembly Speaker Joe Roberts and Senate President Richard Codey, come out for the Meet the Decision Makers: Environmental Regulation; and sign up for our Public Policy Forum. And celebrate some of the great things businesses do at our annual Awards for Excellence Dinner. For more information or to register, contact Stacy Wichner at 609-393-7707, ext. 213, or register online now. If you want to raise your company’s visibility by sponsoring an event, contact Sherry Esteves at ext. 219. In the meantime, mark your calendar.

Managing Energy Costs in Challenging Times
7:30 a.m. to 1:00 p.m.
Friday, September 19
Pines Manor, Edison

Meet NJ’s Assembly Speaker and Senate President
7:45 a.m. to 10:00 a.m.
Friday, September 26
Forsgate CC, Monroe Twp

Meet the Decision Makers: Environmental Regulation and Legislation (DEP Commissioner and Chairs of Senate and Assembly Environment Committees)
7:45 a.m. to 10:00 a.m.
Friday, October 17
Forsgate CC, Monroe Twp.

Navigating Paid Family Leave
Two Convenient Locations!
8:30 a.m. to 1:00 p.m.
October 24, Sheraton, Eatontown
October 29, Forsgate CC, Monroe Twp.

Awards for Excellence Dinner
Begins at 6:00 p.m.
Wednesday, November 5
Pines Manor, Edison

Health Insurance: How To Be a Savvy Purchaser
8:30 a.m. to 12:30 p.m.
Friday, November 14
Woodbridge Hotel and Conference Center, Iselin

Public Policy Forum
7:45 a.m. to 2:00 p.m.
Tuesday, December 9
Woodbridge Hotel and Conference Center, Iselin