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 S-2892 (Sweeney, Ruiz, Cryan, Cunningham). The bill eliminates certain aviation fuel tax exemptions; provides funding for aviation capital projects, and repeals review council.
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 four 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.
All told, it is the cumulative impact of these policies 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 S-2892, and we urge you to vote “no” when the bill comes before the full Senate for a vote on September 27, 2018. Thank you for considering our views and should you have any questions or need further information, please contact me