TRENTON, N.J. — A Superior Court judge recently denied an attempt by the Limousine Associations of New Jersey (LANJ) and the Black Car Assistance Corp. to block a 7% state sales tax from taking immediate effect. Beginning Oct.1, 2006, the increase extends to a range of services, including limousines, tanning salons, music and ring-tone downloads, and health-club memberships.
According to LANJ, the state has not specified what transportation services are subject to the tax. Interpretations remain vague when applied to trips that cross into other states. For now, the association says its “members would be acting in good faith by charging, collecting, and remitting the book rate for transportation services which begin and end in New Jersey.”
Some New Jersey senators have also introduced a bill to repeal the tax, which is expected to generate $27 million to balance the state budget. The court has yet to rule on whether the law is valid. The judge advised that companies could seek refunds from the state if the tax is ultimately ruled unconstitutional.
Source: LANJ, Courier Post, The Times of Trenton