In Fact It’s a Gas—(Again?) In New Jersey

SALT Chat

07.18.16 | SALT Chat

“I frowned at the crumbs of a crust of bread[1]” howled Mick Jagger in the Rolling Stones 1968 hit, “Jumpin’ Jack Flash.” Similarly, I frowned at my July 5, 2016 blog post. We were all rushing around like lunatics trying to get the facts straight for CBS-TV News, our clients, and all interested parties. Simultaneously, the New Jersey Senate decided to do nothing and Governor Christie decided to suspend all nonessential road projects.

All that energy expended for nothing? Maybe not.

Apparently the Governor and the President of the New Jersey Senate have been burning the midnight oil to reignite the proposal to raise New Jersey’s gasoline tax. The original bill called for a 23 cents per gallon tax hike and controversial 1% cut to the State’s sales tax rate. Rumor has it that the revamped proposal would keep the proposed gas tax hike, but no one is talking (yet) about any corresponding tax cuts.

The likelihood of a sales tax cut is unknown at this point. What is known, however, is that Christie’s executive order created work stoppages and left many people out of work. Regardless of your local representative’s view of changes to the tax rates, we do know everyone wants to work and to have good roads to get there.

Should you have questions about the potential gas tax, sales tax, or any state and local tax issues, contact me at WBerkowitz@berdonllp.com or your Berdon advisor.

[1] I think this might be my new favorite “throwaway” song lyric.  Past favorites have included “. . . Underwater, unaware, and the plane flies through the air” (Secret World by Peter Gabriel) and “To the people who you met and it’s your first cigarette” (Sugar Mountain by Neil Young).

Wayne Berkowitz, a tax partner and head of the State and Local Tax Group at Berdon LLP, New York Accountants, advises on the unique requirements of governments and municipalities across the nation.