Minimum Wage Hike & Gas Tax Increase Reminders; Merry Christmas & Happy Hanukkah

December 26, 2024

Operational Reminders:
New Year Minimum Wage Hike & Gasoline Tax Increases

The New Year is just days away, and that always brings new developments.

As a general reminder, there are two looming and notable changes coming — one to take action on, the other to merely be aware of.

Effective January 1, 2025, the minimum wage will be $15.49 an hour, up from the current $15.13. This increase reflects a change in New Jersey law signed by Governor Murphy in February 2019. That law created stepped-up yearly minimum wage hikes, and also partially ties those increases to the rate of inflation.

For seasonal and small businesses, the rate increases to $14.53, from the current $13.73. Small businesses in this law are defined as fewer than 6 employees and seasonal businesses are ones in which at least two-thirds of the business’s gross receipts were received in a continuous period of not more than 16 weeks.

This is an action item that needs your attention. If you use a payroll company, remember that they will not increase the wage without being explicitly told to so. Make sure any needed wage increase takes effect by Monday, January 1st, and not in the first pay period after the New Year. If necessary, double check that any overtime rates are set at the new number as well.

The NJ gas tax is collected to support the State’s Transportation Trust Fund (TTF). Effective January 1, 2025, the gas tax will increase by 2.6¢ per gallon. You can read more about the official tax increase announcement by CLICKING HERE.

You’ll recall that this increase is due to a new law, which gradually raises the petroleum products gross receipts tax (PPGRT) through Fiscal Year 2029. This 2.6¢ per gallon hike impacts all gasoline and diesel motor fuel sold in the state. This increase will be passed on to retailers on their first delivery after the New Year. You don’t have to worry about a “floor stocks” tax reporting on any gallons which are already in the ground. The total state and federal excise and PPGRT taxes on gasoline will be 63.3¢ a gallon and 76.3¢ a gallon for diesel.

This change does not require any action on your part, because all fuel taxes are collected at the racks/terminal. You only need to be aware that the hike is being triggered, and should see this increase included in your fuel delivery invoices and bills of lading.

The EVR Deadline Has Elapsed

The deadline for the motor fuel service station Enhanced Vapor Recovery (EVR) compliance mandate was this past Monday, December 23, 2024.

The mandate process and the accompanying hard-deadline have been unfolding for seven years. NJGCA has been regularly pushing compliance reminders and accompanying details on this upgrade for well over two years, but there has been a recent spike in calls asking for assistance in navigating the process.

Since so many station owners waited until the last second, DEP offered station owners who would not make the deadline the opportunity to come forward and agree to an Administrative Consent Order (ACO) to avoid excessive fines and fees for non-compliance. A completed and signed ACO had to be submitted to DEP this past Monday.

Though the deadline has come and gone, last week we reported there were unofficial rumblings of DEP going into the field this week to preliminarily enforce the deadline — issuing warnings and/or fines for non-compliance. As we’ve stated previously, DEP feels this is a zero-tolerance situation and is taking this seriously.

Nick has been in regular contact with DEP officials over the EVR mandate, and has assisted members who agreed to ACOs prior to the 12/23 deadline. If you have not met the mandate deadline, did not agree to an ACO to avoid a violation, and have been visited by DEP this week (and were issued a warning or fine, besides), please reach out to let us know.

Contact Nick@njgca.org or 732-256-9646 with any anecdotal experiences or observations.

Merry Christmas, Happy Hanukkah, and Happy New Year!

As we head into the New Year next week, we want to wish everyone a very Merry Christmas and Happy Hanukkah!

This is a special time of year that invites family gatherings, moments of reflection, and making warm memories with loved ones.

No matter the tradition, we hope you’re celebrating the holiday season, and are looking forward to the New Year ahead.

Enjoy!

Rack Averages

Date	Rack Avg	Avg w Taxes	Low Rack
12/19	196.14	$2.5684	186.22
12/20	198.10	$2.5880	190.65
12/23	198.06	$2.5876	190.50
12/24	200.04	$2.6074	192.71
12/25	200.04	$2.6074	192.71

Date	Avg Retail	Avg Margin	Diesel Rack Avg
12/19	$2.94	0.34	228.56
12/20	$2.94	0.37	228.06
12/23	$2.94	0.36	227.91
12/24	$2.94	0.36	227.73
12/25	$2.94	0.33	227.73

News Worth Knowing:

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US News Names 8 NJ Companies Among Best for Employees

Smart Meters Coming to NJ Homes – How They Can Help You Save Money!

Sinkhole Swallows Portion of Route 80 in Post-Christmas Morning Commute

States with Digital ID Growing, But New Jersey is Years Away

Opinion – Offshore wind can create a greener, more just future for New Jersey. Here’s how

Four NJ/PA Toll Bridges Go Cashless in January

Member Benefit Partner (MBP) Spotlight: CBIZ Insurance Services

Why CBIZ Insurance?
CBIZ represents the finest companies in the industry and is positioned to negotiate with the most competitive insurance carriers. As a leader in the auto service/fuel dealers industry, they continue to provide solutions for service stations, c-stores, car washes, repair shops, auto body shops, and wholesalers. They understand how to provide a cost-effective, flexible, and comprehensive insurance program for your business, including a dividend program available to NJGCA members.

Multiple Services with a Single Focus: Your Success
Growth and Success. Efficiency and Profitability. It’s likely these goals are top priorities for your business. It is also likely that the daily distractions of financial and employee issues diminish your ability to focus on those goals. CBIZ enables you to dedicate your time to critical business matters by providing custom solutions that help you manage your finances and employees. They offer clients exceptional quality and diverse capabilities with the personal attention your business needs and deserves, all with a single focus: your success.

Contact: Pete Gudzak, 732-581-6001, PGudzak@cbiz.com www.cbiz.com

Available Real Estate

Cape Harbor Shell

**Price Reduction**

795 Route 109, Unit B, Lower Township, NJ, 08204

Contact: Jerry 609-425-8837 capeharborshell@comcast.net

Station for Sale

Thriving High Profit Gas/Service Station close to Major Highway in Prime Location.

This Exclusive Gas Station is the Sole Provider in the entire town, achieving a remarkable fuel profit of up to and sometimes over 1$ a gallon. Consistently selling 45,000 gallons monthly. Most fuel customers come from Highway so fuel prices do not have to be competitive.

Also included with the Property is a Reputable High End Auto Repair Facility. Repair shop has all required Specialty and Diagnostic Tools for servicing mostly High End Vehicles. Advertising is no longer used do to an enormous Demand and large Customer Base. Repair Business has has potential for increased profitability and expansion, the business is open to experienced buyers for a possible partnership or profit sharing arrangement. Location is 1 out of 100. Fuel sales make 20-40K a month and repairs can do the same with the right operator.

This one of a kind opportunity can include seller financing for those with High-Level Automotive or Gas Station Experience.

Contact Greg
908-291-7845