TRENTON, N.J. — The state of New Jersey is hoping that its new sales tax on limousine rides will generate $30 million annually in revenue. However, it is more likely that the state will end up with about $9 million a year when all is said and done, according to Barry Lefkowitz, Executive Director of the Limousine Associations of New Jersey (LANJ).
Operators do not have to pay sales tax on interstate jobs, funeral work, point-to-point trips in other states, government work or affiliate jobs – which add up to a large portion of the industry’s annual revenue. Separating these jobs from taxable ones, Lefkowitz says, will also create an expensive auditing nightmare for the state, further reducing the net revenue it gets from the limousine industry.
Lefkowitz is seeking the support of legislators in the hopes of getting the tax rescinded before the legislation goes into effect on Oct. 1, 2006. LANJ started a Legal Defense Fund at its July meeting to fight for the repeal of the tax and immediately raised thousands in donations. The organization is seeking more donations.
Source: Black Car News