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February 15, 2013 Here is what you will find in this edition:
JOIN NJGCA ON FACEBOOK -- CLICK HERE EXECUTIVE DIRECTOR'S MESSAGE: GREETINGS & SAL-UTATIONS!
INSPECTION STICKERS AT PIF OFFICES,
MILEAGE TAX DEBATE, GENERATOR-MANDATE TESTIMONY As a small business owner, there are literally hundreds of things that consume you or create stress daily. And despite lip-service from the media, Trenton, Washington, or the peanut gallery, most will never really understand that you are in a perpetual grind. No, the only people you can expect to understand what you’re going through are fellow entrepreneurs, who welcome anything that makes your job a little easier. For that reason, I’m happy to report that a common complaint we’ve been hearing is being addressed by MVC officials: PIF licensed-members having difficulty getting inspection stickers. This process has certainly changed over time. Years ago, a licensed PIF could just visit any CIF location and get the stickers they needed. Then they changed the rules to make them available to you in Trenton or via mail order at the Division of Inspection Services. And most recently, they closed down the Trenton location and made getting stickers strictly a mail-order process. Though I’m sure they had a good reason at the time, the change had unexpected consequences for auto repair shops. As one Member recently learned, getting MVC to replace a lost sticker shipment is a near-Herculean task. In his case, he paid for the stickers, waited two months, and never received the package. He suspected the package was lost in the mail or a mail-carrier walked off with them. Out of desperation, he offered to go to Trenton to pick up stickers, but MVC wouldn’t permit it. Meanwhile, his business suffered as he could not perform any inspections without having stickers to affix to patrons’ cars. Obviously this kind of logistical nightmare is both unnecessary and harmful to small business owners all over the state. When I saw Chief Martinez a few weeks back, I spoke to him about this issue, explained the problem, and sought his assistance. Whatever I said must have either done the trick (or I just happened to annoy him that much) because a VID message recently went out to notify all members that, starting on March 4, 2013, PIFs can purchase stickers five days a week at regional offices. This will include inspection stickers and heavy duty diesel approval stickers. In order to purchase the stickers, MVC will issue PIF Sticker Identification Cards to all licensed PIFs. You can read more on the requirements and the program by CLICKING HERE. This is obviously welcomed news and will hopefully alleviate at least one daily headache in running your establishment. Last week, we discussed steps the State of Virginia is taking to eliminate the gasoline tax. The plan being debated would have seen the tax go away in favor of bumping the sales tax and adding additional registration fees, which would offer a more stable source of funding for transportation projects. The reason behind the policy shift was to address a very real phenomenon: gasoline tax revenues are falling as motorists shift to smaller cars, new vehicles are available with more frugal powerplants, and some drivers are trading in their traditional vehicle for electric- and CNG-powered cars. You can read more on our report by CLICKING HERE. As we alluded to in last week’s edition, another proposal that is being bandied about is the idea of a “mileage” tax – the more you drive, the more you get taxed. The thinking behind this proposal basically says that, since engines are getting more efficient and consumers are producing less gasoline, a new paradigm has to be found to pay for transportation projects. In taxing the number of miles you driver (rather than the amount of gasoline you buy), the government can get the revenue they need (while possibly deterring people to drive at all – but that’s another story). We all know that our own Transportation Trust Fund (TTF) has been raided over the years to pay for other state projects. That theft, in addition to improving fuel economy, means that many state transportation projects have been affected. In fact, Trenton was forced to borrow money a few years back just to pay for projects that were already approved. Recently, however, State Senator Jim Whelan introduced a bill that would seek to adopt a mileage tax. Yes, lawmakers could just raise the gas tax, but as we said last week, it would only be a short-term fix. Policy-wonks in the State House think they may need to look further down the line in order to sort this out. So how would they implement it in order to replenish the TTF and maintain our roadways? Through GPS technology. Yup, the magic-stuff that makes the navigation device on your dashboard work could soon serve double duty in helping the government keep track of the number of miles you drive – and then tax you. If actually implemented, that means the government will know where you’re going and when – 24 hours a day – all so they can collect a tax from you. Kind of a scary thought isn’t it? I’m sure there are all kinds of civil rights and privacy implications against this idea. I for one am very interested to hear how the ACLU will react. At this moment, it’s not truly technically feasible for Trenton to mandate this, nor would it be popular to order people to get such a device installed. However, that doesn’t mean Washington could somehow mandate that all-new cars couldn’t be equipped with GPS radios in order to keep track of this at some time in the future – and trust me that battle will come one day soon as revenues continue to fall. Senator Whelan’s bill, however, isn’t as far-reaching. Rather than mandate some costly, technological retro-fit to existing cars or try and force automakers to make such devices standard, his proposal is to have motorists self-report mileage on their taxes – which also isn’t likely to happen. This may take years to actually get sorted out and the gas taxes revenues will continue to fall. So don’t be surprised if Trenton (and Washington) look to raise the gas tax in the medium-term while they sort out a mileage tax long-term. And while public officials have that debate, don’t be surprised to see the media chime in support of higher taxes and the mileage tax, as can be illustrated HERE. On Monday, Eric Blomgren and I were in Trenton to speak on two proposals. The first was the now-infamous station generator-mandate bills and the second is a bill aimed at eliminating cigarette trafficking. I’ve gone on record about how I feel about the first bill many times before: Any proposal that mandates electrical generators at stations without considering gasoline distribution during a crisis won’t help the public one bit. You can read my full testimony on the bill by CLICKING HERE. Our position on this issue isn’t going unnoticed and it’s starting to get some attention by policymakers. I’m supposed to go see the chairwoman of the committee next Friday to discuss the matter further. I will report back to you all when I have further information, but at least we have a seat at the table to drive whatever policy may (or may not) get enacted. You can read news coverage of my testimony by CLICKING HERE and listen to audio from radio station NJ 101.5 by CLICKING HERE. As for the second bill, we submitted testimony in support of the legislation since it would combat cigarette smuggling, a serious issue that robs the state of tax revenue and your business of foot traffic. Small business owners who sell cigarettes at their stations and convenience store are law abiding citizens who play by the rules. They depend on cigarettes for foot traffic and to drive more profitable purchases. When someone trafficking cigarettes sets up shop, they aren’t just robbing government coffers, they are robbing YOU! We cannot allow that to happen and I’m glad to report the measure has wide support on both sides of the aisle. I’ll let you know when there is further movement on the bill, but this is a proposal that every small business owner should support! Thanks for reading – See you next week!
Regards,
BUSINESS FOR SALE! 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!
CLASSIFIEDS: FOR SALE & HELP WANTED! After running an ad in the Road Warrior over the last month, NJGCA was able to assist a member in selling his equipment! If you'd like to list equipment for sale, or have an open position you'd like to make other industry professionals aware of, please contact NJGCA at 973-376-0066 and let us help you get the word out!
NEWS AROUND THE STATE: THE NEWS YOU SHOULD KNOW 02/14/2013: Minimum wage hike heading to the ballot On Thursday, the General Assembly passed a referendum placing the minimum wake hike in the hands of voters. If approved in November, New Jersey’s minimum wage will rise by one dollar per hour to $8.25 and permit annual increases based on the consumer price index. Though only a small number of workers are paid the minimum wage, pro-business advocates have continually argued that raising the rate will put pressure on entrepreneurs to increase employees’ wages by a corresponding amount. Policy watchers also warn that, as the measure will amend the N.J. Constitution, it could create a dangerous precedent for future policy battles. 02/13/2013: Report: Vehicle dependability rising According to a new report by J.D. Power and Associates illustrates that new-vehicle dependability is on the rise. The study, which focuses on vehicle problems during the first three-years of ownership, set a new record for the lowest number of problems since the annual report began in 1989. The news maybe a benefit for automotive repair shops since improved dependability will entice consumers to buy used vehicles as they come off lease or are traded in. As consumers keep their cars longer due to economic conditions, it will enable small business owners another opportunity to serve their customers and keep their cars in good running order. 02/13/2013: President seeks to create energy trust to end oil dependency In his State of the Union address on Tuesday night, President Barack Obama put forward a proposal to create an “energy security” trust. The trust would use some federal oil and gas revenue to fund research and technology developments aimed at “shifting our cars and trucks off oil for good.” Click above to read more details on the President’s idea. 02/07/2013: Surcharge ban passed by Assembly committee As reported in an earlier edition of the Road Warrior, and in reaction to changes credit card regulations due to a multi-year law suit, the Financial Institution and Insurance Committee has approved a bill that would prohibit retailers from adding a surcharge to consumer purchases. Click above to read more.
TRAINING CLASSES!! PLEASE NOTE: FUTURE DATES 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!!
MEMBER BENEFIT PARTNER MESSAGE
TMP Energy Solutions 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
Promoting our agenda in Trenton is of utmost importance to NJGCA and our members.
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: 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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