TRENTON, N.J. ? In an effort to raise $342 million for its state budget, beginning Oct. 1, New Jersey will impose a 7% tax on over a dozen services, including limousine rides. The previously untaxed services also include cleaning services, massages, tanning and health-club memberships, among others. Industry leaders plan on fighting the new law by suing the state on the basis of economic harm.
The rule also brings up various complications for the Limousine Association of New Jersey (LANJ), such as “How do you tax a trip that goes beyond New Jersey?” Barry Lefkowitz, executive director of the LANJ, represents just one member of the industry raising concerns to officials. He pointed to a survey saying 25% of its members would either close or move out if asked to charge a tax. Many others question the law’s constitutionality.
Source: North Jersey Media Group, Inc.