Regulations

NJ Limo Sales Tax On Track For Repeal

Posted on May 12, 2010 by LCT Staff - Also by this author - About the author

The proposal to nix a 7% tax on chauffeured transportation service in New Jersey has gathered bipartisan support and is moving ahead in the state legislature.

TRENTON, N.J. — An onerous sales tax on chauffeured service statewide appears as if it’s headed for repeal in the New Jersey Legislature.

Assemblyman LOUIS D. GREENWALD, D-6th District, chairman of the powerful Assembly Budget Committee, gave LANJ executive director Barry Lefkowitz a commitment on April 25 that he supports the repeal.

Lefkowitz also has spoken with bipartisan sponsors Sen. Paul Sarlo (D) chairman of the Senate Budget and Appropriations Committee, Sen. Anthony Bucco (R), Budget Chair for the Senate Republicans, and the Assembly sponsor, Assemblywoman Nellie Pou, D-35th District, chair of the Assembly Appropriations Committee.

Lefkowitz said this week the sales tax has a strong chance of repeal, and if passed, could take effect with the 2011 state budget that starts July 1. The sales tax now applies to INTRAstate limousine service, but not to INTERstate runs since a federal court in 2006 declared the tax could not be applied to interstate trips across state lines.

In 2001, New Jersey exempted lease purchases, rentals, parts, and labor from the state sales tax.

LIMOUSINE ASSOCIATIONS OF NEW JERSEY

— Martin Romjue, LCT Magazine

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