NJBIA President and CEO Michele N. Siekerka, Esq. issued the following statement regarding Gov. Phil Murphy’s proposed FY2021 budget.
NJBIA President & CEO Michele Siekerka, Esq.
“This budget simply does not reflect the stark reality of our times. Instead of keeping expenses low for our taxpayers, Governor Murphy is raising taxes to make New Jersey businesses less competitive. Instead of holding the line on spending, Governor
“And instead of taking the opportunity to pursue the structural reforms that are so desperately needed to right-size our state budget and make New Jersey more affordable, this governor offers more of the same tax-and-spend policies that have brought us here to the edge of the fiscal cliff in the first place.
“New Jersey businesses have already sacrificed their revenues and livelihoods to prevent the spread of coronavirus by shutting down their operations. Business owners have tapped their own savings and taken on new debt to keep from going under completely, and to continue paying their employees what they can. New taxes on the very same businesses that have already given so much and are the only ones that can drive our future recovery is inconceivable considering that the state was just given $9.9 billion in borrowing authority.
“NJBIA calls on our Legislature to fix this irresponsible budget.”
In 2015, an overwhelming bipartisan vote to reduce and cap the sales tax on boats was passed to help support the recreational boating industry in New Jersey after the severe economic downturn and the devastation to the industry from Hurricane Sandy and ensure that New Jersey did not continue to lose revenue to other states.
Competition from Other States
New Jersey is surrounded by or within easy travel to states that cap the sales tax on boats and raising the tax again makes our State much less competitive as a result. New Jersey continues to be in direct competition with the following states that have a sales tax cap on boat sales:
Connecticut: 2.99% Sales Tax*
Delaware: 0% Sales Tax
Florida: $18,000 Maximum Sales Tax
Maryland: $15,000 Maximum Sales Tax
North Carolina: $1,500 Maximum Sales Tax
New York: $18,975 Maximum Sales Tax
*Connecticut reduced their sales tax on boats following NJ in 2018. Representatives in other states such as Massachusetts and Maine are also working towards similar cuts and caps.
NJ Boat Registrations
NJ Boat Registrations have been plummeting since 2000. New Jersey had lost over 90,000 registered boats from 2000 to 2015 when the tax cap was enacted. Following the passage and implementation of the boat sales tax reduction and maximum cap, there was an increase in the number of registered boats and the decline slowed to 0.3% for the years of available data. The annual registration decline was reduced by 90% which is significant and the legislators who championed the Assembly and Senate bills should be commended for effectively addressing this problem.
AMEN!!!
(from a small business owner)