SALES TAX ON GASOLINE
GASOLINE RESERVE IN THE NORTH EAST
PRICE GOUGING AND ILLEGAL FUEL DISPENSATION
WAR ON TOBACCO
CRITICAL REMINDERS

Recently, there has been much discussion about how to raise funds for the Transportation Trust Fund. Proposals to add New Jersey's 7% sales tax to gasoline sales have been seriously considered. At today's price, 7% equals roughly $0.25 per gallon. Besides the fact that we oppose anything that will increase the cost of our product to consumers, here are two reasons why a sales tax, which station owners must CALCULATE, and then COLLECT, are problematic:

2. Even if you do have an electronic pump that will automatically make these calculations for you, you will still be responsible (just as you currently remit sales tax on all of your other products) to remit the sales tax on gasoline. If you pump 100,000 gallons a month, you sell $350,000 of gas. Applying a 7% sales tax to $350,000 equals $24,500 in additional taxes each month that you must remit to the State on the 20th of each month, on top of the taxes that you are already sending in. If you pump 200,000 gallons a month, be prepared to manage and sequester $50,000 per month that will have to be remitted on the 20th of the following month. I see a lot of dealers getting into tax trouble very quickly, and I will be a screaming, yelling lunatic in Trenton if they try to pass a sales tax on gasoline.

However, there is another proposal that has been submitted in Trenton, by Senator Ron Rice, which would change the motor fuels tax rate from a fixed rate (currently 10.5 cents-per-gallon) to a variable rate which would change (on a quarterly basis) in accordance with the fluctuation in the average retail price per gallon of unleaded regular gasoline. To read the bill itself, please click here. So far, surprisingly, there has been no news coverage about this particular proposal, although as you know there has been substantial coverage about the proposal to apply the sales tax to gasoline, in general.

Moving on, the Department of Energy recently announced the creation of a one-million gallon strategic gasoline reserve in the Northeast, to be located in New York Harbor and New England. The stockpile will be the first of several reserves to be built in parts of the country that are susceptible to extreme weather, such as Hurricane Sandy. As you all know, the major issue during Sandy was fuel delivery, not electric power outages. That's why we have advocated so passionately against a generator mandate. We anticipate that the State's voluntary generator grant program, combined with the collective efforts in the Northeast to increase emergency supplies of fuel reserves, will be critical steps to ensuring that we never experience gas lines like the ones during Hurricane Sandy again. To read the Oil Express Alert, please see the News You Should Know section.

Another story that came out this week, relating to Hurricane Sandy, was the disturbing news of a creep who allegedly defrauded consumers in the wake of Superstorm Sandy by charging exorbitant prices for generators and selling gasoline without being a licensed motor fuel retailer. Within five days, Stephen's Landscaping, or Stephen's Garden Center, allegedly sold 133 generators to consumers at price markups of between approximately 82% and 155%. Some of these generators had been recalled due to potential fire hazards. Additionally, the company also allegedly sold a total of 44 five-gallon gas cans, filled with gasoline, at $50 per can -- even though the company was not licensed by the New Jersey Division of Taxation to engage in the retail sale of motor fuel. Even if this person was licensed to sell motor fuel, at a price of $10.00/gallon, he charged more than we could ever dream of charging. This loser deserves everything that he gets as a result of this investigation. It is greedy people like this who make life so much more difficult for us, and are the reasons behind the price gouging laws that we all work so hard to follow. To read the Oil Express Alert, please scroll down to the News You Should Know section.

Additionally, as a result of the war on tobacco and our efforts to fight the electronic-cigarette tax, we are hearing from many more of our members how important tobacco sales are as a profit center in your business. Just this week, a bill was approved in an Assembly Committee to ban all tobacco products on college campuses in New Jersey. Be aware that we are very sensitive to all tobacco issues because we realize that they are critical to the success of your business, and we are working with several of the large tobacco companies on these issues. Just last week, RJ Reynolds Tobacco Company was in my office discussing how to develop a grassroots campaign to oppose the e-cig tax. If any of you receive a phone call from them, please be cooperative. These issues are critical to your businesses!

1. Membership Dinners are coming up on May 28th and June 3rd. These evenings are the perfect opportunity to interact with your fellow business owners, meet the NJGCA Member Benefit Partners that support this organization, and learn how to improve your profit s on gas and repairs in the simplest ways. You will enjoy dinner and a pleasant evening with your colleagues and Association Staff (and even a free drink if you arrive between 5:30 and 6:00 PM)!! CLICK HERE to go directly to the online registration and payment form!

2. The first big NJGCA PAC fundraiser is coming up on June 24th. This is a clay shooting event that is great for everyone, even if you have never picked up a gun before. You will have to opportunity to relax, spend the day enjoying yourself with fellow small-business owners and the NJGCA staff, eat lunch, and support the important work that the NJGCA PAC does to help your small business. With critical issues currently being discussed, including the gas tax and e-cig tax, it is up to the NJGCA PAC to protect your interests. We can't do that without your help! For complete information, please click here for the invitation and response form. YOU CAN REGISTER AND PAY FOR THE EVENT ONLINE BY CLICKING HERE! We also have a sponsorship form if you know of a business, corporation, supplier, or anyone that you work closely with who you think might be interested in supporting our cause. Please, join us as we work to influence positive changes and prevent destructive policies in Trenton!

3. The NJGCA research project on crime at gas stations received ZERO responses last week. The participation of our members is critical! Please CLICK HERE to fill out the survey. This critical information will help NJGCA serve your interests better in a variety of ways. Please take a few minutes this weekend to complete the survey.

Thanks for reading -- See you next week!

Regards,
Sal Risalvato
Executive Director

Well established family-owned gas and repair service station in Springfield, NJ. Serving the community for over 30 years, located on a well travelled main street.

We are looking for the following:

If you'd like to list your business for sale, publish a location you're selling, or are seeking a business partner for your establishment, please contact NJGCA at 973-376-0066!

05/07/2014:
The E-Cigarette Legislative Environment
Currently, Minnesota is the only state that taxes electronic cigarettes, with an other tobacco tax rate (OTP) of 95% the wholesale cost. The impact of a 95% wholesale tax on e-cigs means that the average price for a disposable e-cig with the state excise tax and sales tax included is around $16 to $18. This is essentially double what e-cigs sell for at retail in other states. So far this year, bills to tax e-cigs have been defeated or failed in four states including Indiana (24% OTP), Oregon (81.25% OTP), Washington (95% OTP) and Hawaii (100% OTP). The states with e-cig tax bills still pending are Kentucky (15% or 20% OTP), New Jersey (same as $2.70/pack cigarette tax rate), New York (75% OTP), Ohio (same as $1.85/pack cigarette tax), Rhode Island (80% OTP), and Vermont (92% OTP). This also means that 39 states have not yet considered legislation to tax e-cigarettes.

05/07/2014:
Survey: N.J. business leaders negative on ObamaCare
A majority of New Jersey's business leaders are negative toward Obamacare, worried about consumer spending, and moderately optimistic about the state's economic forecast, according to the latest ParenteBeard -New Jersey Chamber of Commerce Business Climate Survey released Wednesday. The biannual survey polled 101 business leaders across the state, the majority of which identified as either company presidents and CEO’s or senior level executives. Though 39% of respondents said the Affordable Care Act has had no impact just yet, 32% claimed it already has hindered their businesses and another 20% added they expect it to hinder their businesses in the future.

05/06/2014:
NJ Landscaping Firm Charged for Selling Unlicensed Gasoline during Sandy
The New Jersey Attorney General recently announced that the New Jersey Division of Consumer Affairs filed action against a Monmouth County landscaping company, Stephen's Landscaping / Stephen's Garden Center, for allegedly defrauding consumers in the wake of Superstorm Sandy by charging exorbitant prices for generators and selling gasoline without being a licensed motor fuel retailer. The company allegedly sold 133 generators to consumers at price markups of between approximately 82% and 155%. Some of these generators had been recalled due to potential fire hazards. Additionally, the company also allegedly sold a total of 44 five-gallon gas cans, filled with gasoline, at $50 per can -- even though the company was not licensed by the New Jersey Division of Taxation to engage in the retail sale of motor fuel.

05/02/2014:
DOE to Announce Gasoline Reserve for New York Harbor, New England
The Department of Energy recently announced the creation of a one-million gallon strategic gasoline reserve in the Northeast, to be located in New York Harbor and New England. The stockpile will be the first of several reserves to be built in parts of the country that are susceptible to extreme weather, such as Hurricane Sandy. The federal gasoline reserve would be the second in the New York area (In October 2013, New York governor Andrew Cuomo announced a pilot program for a 3-million-gallon gasoline reserve).

TRAINING CLASSES!!
-ALL CLASSES WILL BE HELD AT NJGCA HEADQUARTERS-
66 Morris Avenue - Springfield, NJ 07081 (Union County)

In order to be licensed as a Motor Vehicle Emission Inspector, you must complete this course and pass a "Written Exam" given by the State of New Jersey. NJGCA offers this training in a ONE DAY State approved training program that will provide an understanding of inspection related issues including EPA Regulations, Safety, Diesel, Customer Service and the New Jersey State Specific Curriculum. This specially tailored NJGCA course fulfills all requirements.

CLICK HERE TO REGISTER

CLASS DETAILS:

Class Date: Wednesday, May 21, 2014
Class Location: NJGCA Headquarters, located at 66 Morris Avenue - Springfield, NJ 07081
Arrival Time: 7:00am
Lunch Break: 12:00pm (Pizza and soda will be served)
NJMVC Test: 1:00pm

CLASS FEES:

NJGCA Members: $250.00
Non-members: $300.00

Manuals are included and payment is due upon registration. All credit cards are accepted.

License Fee: Bring a $50.00 check made payable to NJMVC to satisfy the State's licensing fee.

PLEASE NOTE: If you live out of state, you must bring 6 points of ID with you, such as a license, passport, healthcare card, utility bill, etc.

FUTURE CLASSES WILL BE ADDED UPON REQUEST AND ACCORDING TO DEMAND. CONTACT DEBBIE at 973-376-0066 or DEBBIE@NJGCA.ORG TO LET HER KNOW YOU ARE INTERESTED IN TAKING A SPECIFIC CLASS. THIS WILL ALLOW US TO GAUGE YOUR NEEDS AND KEEP TRACK OF THOSE WISHING TO PARTICIPATE!!

We have had a number of NJGCA members successfully reduce their rate per kWh signing up through our energy saving program. We know it's difficult to collect 12 months worth of previous electric bills to get an "accurate" analysis when comparing a variable rate to a fixed rate, but we now have another option available.

This new solution is a power purchase option; the other program is still in full force and has saved members thousands of dollars. If you sign up for the power purchase option, you will be grouped with other NJGCA members until the minimum KW demand is acquired. By pooling the member's usage together, you will be able to take advantage, as large energy users do, and receive a lower kWh rate.

Each member will receive their own contract. Each member is responsible to sign and return the agreement the day it is received in order to secure the price for their group.

Please do your due diligence, so when you receive the proposal and the agreement you will be able to make an intelligent decision.

If by chance, you still want us to assess you bills, to give you a price to compare, we will require12 months of your most recent utility bills.

There are no bills required, but we would still like to have one bill per meter on file to check account #'s, meter #'s service addresses and other pertinent information incase there is a problem.

The term of the agreement is for 12 months. During this term period, you will have price protection against any energy price increases along with a low fixed kWh rate.

If you are interested in becoming part of this power purchase option, please contact Greg Cannon at the NJGCA.

Remember when you sign up your energy through the NJGCA Energy Program, TMP makes a considerable donation to the NJGCA Scholarship Fund through their proceeds. This has no affect on your rate, and costs you nothing out of pocket.

We hope to help hundreds of NJGCA members reduce their utility costs by participating in this and our other cost reduction programs. Our purpose, in the endeavor, is to help NJGCA members lower their energy costs while supporting the NJGCA Scholarship Fund.

Contact GREG CANNON at 973-376-0066 or email Greg at greg@njgca.org. Mention that you are interested in saving money on your energy bills. NJGCA & TMP Energy Solutions will handle all the rest.

POLITICAL PARTICIPATON: THE NJGCA PAC

DEFENDING OUR MEMBERS.
PROTECTING YOUR INTERESTS.
ANSWER THE CALL & CONTRIBUTE TODAY!!

Promoting our agenda in Trenton is of utmost importance to NJGCA and our members.

However, in order to truly affect the debate, we must ensure our friends in the Legislature are re-elected. It is for this reason that your Association has established the NJGCA PAC.

For too long, the weight of funding our Political Action Committee, the arm of the Association responsible for political donations, has rested upon a few. This is not only unfair to those few members who have shouldered this burden, but means we are not utilizing our full strength to affect the debate in Trenton.

To truly understand the importance of supporting our allies, consider our successes in Trenton:

We defeated BELOW COST SELLING
We made history in getting FIRST RIGHT OF REFUSAL signed into law!
We have built large support for RIGHT TO REPAIR and got it passed out of the Assembly
We defended your small business against the false accusations of Attorney General Anne Milgram
We gained wide support to move New Jersey to an all PIF Inspection System and close the CIF lanes
...and MUCH MORE!!

In each instance, we achieved these goals with the help of our friends in the Legislature!

If every member contributes just $100.00 we will be able to provide the help necessary to ensure victory for our allies.

PLEASE SEND YOUR CONTRIBUTIONS TO:
NJGCA PAC
66 Morris Avenue
Springfield, NJ 07081
Please make your donation payable to NJGCA PAC

I understand that times are tough for all NJGCA members, but this is just as important as any battle we have fought in the past.

We have made great progress in Trenton. I hope that you will answer the call.

THE MEMBER TOOL BOX

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