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2024 Annual Public Policy Forum, December 4, 2024 REGISTER

 

Andrew Musick

Andrew Musick, Vice President

On behalf of our member companies that provide more than 1 million jobs in the state and make the New Jersey Business & Industry Association the largest statewide business association in the country, we are writing to express our OPPOSITION to A-4392/S-2892 (Burzichelli, Giblin, Sweeney, Ruiz, Cryan), which eliminates certain aviation fuel tax exemptions to qualifying airlines; provides funding for PATH train extension to Newark Liberty International Airport and airport improvements.

Currently, under New Jersey’s Petroleum Products Gross Receipts Tax (PPGRT), all air carriers that operate in New Jersey are subject to tax based on only the aviation fuel used during the burnout portion. However, this legislation would subject all aviation fuel sales to the full 4 cents per gallon rate, increasing costs on all commercial air carriers in New Jersey.

Furthermore, the change would make the state less competitive within the region, as both New Jersey and New York currently structure their aviation fuel taxes in a similar manner. While New York and New Jersey have similar tax rates on jet fuel, at 5 cents and 4 cents per gallon, respectively, any changes to the fuel tax formula would put New Jersey at a competitive disadvantage.

It is the cumulative impact of policies like these that contribute to the ever increasing cost of doing business in New Jersey and are counterintuitive to efforts that encourage economic growth. Once again, NJBIA respectfully opposes A-4392/S-2892, and we urge you to vote “no” when the bill comes before the Assembly Transportation and Independent Authorities Committee for a vote on October 18, 2018.

Thank you for considering our views and should you have any questions or need further information, please contact me at 609-858-9512.

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