Fwd: Road Warrior: Happy Independence Day

July 4, 2024

State Budget is Passed, Sales Tax on EVs starts October 1

We discussed the details of the New Jersey Fiscal Year 2025 budget in depth last week. You can read that HERE if you missed it. 

The major tax increase was the new 'corporate transit fee', a tax on c-corp net profits earned in the state of over $10 million per calendar year, a 2.5% tax on top of the 9% tax that already exists. This means NJ will go from the 4th highest corporate tax to the first. Advocates have supported the bill because all the money it generates is supposed to be dedicated to NJ Transit, but as the state Supreme Court has already ruled, there is no true dedication of any kind of funding unless that dedication is written into the state constitution, so legislators in any given year are free to spend the revenue from this tax on whatever they want. The bill passed 43-34 in the Assembly and 22-15 in the Senate, with all Republicans and a small number of Democrats opposing. 

Also passing (and signed into law) is the bill to bring back the sales tax on purchases of new EVs in the state, starting October 1st at a 3.3125% rate and then the full 6.625% rate on July 1st. Also effective this week is the new registration fee on EVs, to replace the gas tax revenue they do not pay, of $250 per year. All new cars pay 4 years of registration fees upfront, so the combination of these two charges will be a pretty significant increase in the purchase cost of a new EV in the state. That bill passed 41-34 in the Assembly and 21-17 in the Senate. Most of the opposition came from Republicans, who were upset that the bill also eliminated the annual 'back to school' 10-day sales tax exemption for certain school supplies; there was very little opposition to the EV portion of the bill.

Reminder for Stations: EVR Deadline Coming in Less Than 6 Months

For two years, the Association has reported on the NJ Department of Environmental Protection’s (DEP) Enhanced Vapor Recovery (EVR) upgrade mandate. Looking back at those earlier warnings, the EVR upgrades affect all locations with underground storage tanks (USTs) installed prior to December 23, 2017 and the upgrades must be completed before the December 23, 2024 deadline.

We may sound like a broken record, but we will continue to urgently point out this deadline until all our members meet the mandate. While sounding the alarm the last twenty or so months could have been interpreted as “premature”, the reality is that securing a contractor and having the required work completed on time could prove difficult for some station owners.

That’s because getting a quote and signing a contract doesn’t necessarily mean that the work will be done quickly or be done on time. The update will include a California Air Resources Board (CARB) Certified Phase 1 system, and includes enhanced rotatable fill adapters, dust caps, spill buckets, hoses, and other requirements. There are plenty of manhours and parts incorporated into the equation. If one action item goes awry, you may face fines or penalties for non-compliance.

Looking at the Stage II Vacuum Assist Vapor Recovery decommissioning from a few years ago (which ended on December 23, 2020), there were plenty of examples of station owners with “good intentions” to get the work lined up and completed on time, but ultimately faced fines when the time lapsed. Despite their (incorrect) sense of having “plenty of time”, they unfortunately discovered that many contractors were already committed to taking on Stage II decommissioning projects through the end of that year. Those stragglers were out of luck, and many received violations and paid hefty fines for their non-compliance.

As stated previously, we highly recommend all affected stations comply with the upcoming mandates now! Any station with tanks installed before December 23, 2017 should contact their compliance vendor to inquire about the updates and schedule their completion immediately. If your contractor or compliance company has any questions, please click HERE to review the official DEP Compliance Advisory on the EVR mandate. 

Even if you think that it’s okay to wait until the last second, remember that manpower and materials are often at a premium. There’s nothing to guarantee against a shortage of knowledgeable staff or quality materials on hand by the time the project is complete. Don’t wait on this. Act now! Contact Nick@njgca.org 732-256-9646 for questions

Credit Card Settlement Deadline Approaches

While the original deadline to apply for this settlement money was in May, the courts granted an extension to August 30th. 

Based on the number of members reaching out about this, many people were waiting until the last minute. Even though you now have more time, we emphasize that you don't wait to fill out the application because to get what you are entitled to may take more time than expected, as you may need to look up various numbers and records from over the years. 

You should have responded to a claim offer mailed to you, but if you didn't get one back in January you can apply through the website HERE. Make sure you use that official website, there are allegedly some scams going around designed to mimic the official website as a way to steal your claim. You can read more details in this informative article HERE. 

If you have any questions, feel free to reach out to Nick via Nick@njgca.org or 732-256-9646.

High Heat Tips to Protect Employees

Recently lawmakers in Trenton have been pushing a very burdensome and overly broad bill to require a lot of new complex regulations for virtually all employers whenever they are working in excessive heat. You can read all the details HERE. While that bill seeks to define excessive heat as just 80 degrees, this week we are experiencing a genuine heat wave. Even though the bill has not become law, employers should still take precautions to ensure none of your employees come down with heatstroke on the job. 

Whether an employee is working at the pumps or working in the bays, they could become overwhelmed by the high heat, especially if they're not taking care of themselves. Make sure that you and all employees are aware of what the signs of heat stroke are, and what to do if someone appears to be suffering from a heat-related illness. Encourage everyone working in the heat to drink cool water on a regular basis to prevent dehydration. 

You can check out this informative poster from OSHA HERE and read more of the symptoms and responses to heat illness on OSHA's website HERE. As always, feel free to reach out to Nick@njgca.org with any questions or concerns. 

Reminder for Federal Overtime Rule change on July 1st

A reminder that this Monday, July 1st, there was a change in the federal overtime threshold. While there remains lawsuits against this rule that some thought would lead to a delay, the only court action that has come down was to exempt the state of Texas from the rule while the case is being fought, so all NJ businesses must be in compliance. Remember, your payroll company will not make any changes to compensation without you telling them to. 

As you likely know, certain types of employees are exempt from overtime work based on their job duties. You may have managers or assistant/office managers who are paid a flat salary rather than a tracked hourly rate. If a salary is below a certain level, then an employee must be paid time-and-a-half every time they work more than 40 hours in a week, no matter what their job responsibilities are. 

Currently, that salary threshold is $684 a week ($35,568 a year). As of Monday, that minimum salary is now $844 a week ($43,888 a year). Starting July 1, 2025 that minimum salary will be $1,128 a week ($58,656). 

If you have a salaried worker making less than those amounts, you will need to either increase their pay to that level, or begin tracking all of their hours worked in order to ensure that they receive overtime wages anytime they work more than 40 hours a week. Even if you are confident they will never work more than 40 hours in a week, you would still need to formally track them. If a Department of Labor official finds an employee who works 8 hours a day, 5 days a week, spending even just an extra 10 minutes or so a day working (perhaps while opening/closing), that adds up to an hour a week they legally need to be compensated for at time-and-half wages, and they will go back years to force that 'back pay' be given out, plus fines.

Don't forget the importance of complying with these laws, even on the technicalities. We still sometimes see shopowners who have an arrangement with a non-exempt employee (like a technician) where they will be paid a flat wage no matter the exact number of hours worked in any given week. This is illegal, pay must be structured at one rate for hours 1-40, and then 1.5x that rate for every individual hour over 40 in a given week. It doesn't matter if the flat rate is a more than fair rate, or if the employee prefers the flat rate, DOL will hit you with a lengthy fine, then send out a press release about how you cheated your employee. This happened just last week to a restaurant. 

Feel free to reach out to Nick@njgca.org 732-256-9646 anytime with questions, or you can read more from DOL HERE and HERE. 

Rack Averages

**Average gross margins have fallen in half from the beginning of June through the end of it. Allegedly, the Biden Administration's sell-off of the Northeast Gasoline Supply Reserve (around 29 million gallons of gasoline located in NJ) should be hitting the market imminently. 

News Worth Knowing:

Member Benefit Partner (MBP) Spotlight: TMP–Utility Savings

Lower your electricity costs today!

TMP Energy Solutions is the preferred energy consulting firm, professionally servicing NJGCA members for over ten years. As an NJGCA MBP, we are your “trusted source” in purchasing energy because we have your best interest in mind.

What TMP does for NJGCA Members?
• We create your businesses energy profile and establish your price to compare.
• We use your price to compare against current fixed-rate energy market pricing.
• We will submit your usage into our network of energy suppliers.
• We recommend the best available options, including the utility’s variable pricing average.
• We stay engaged though out the term of the agreement to offer support & answer questions.
• We support the NJGCA Scholarship program.
Selecting TMP Energy Solutions is like having your own personal “NO COST Energy Consultant!”
• We have expert energy advisors with over 30 years of experience for consultation.
• We are supplier agnostic and use a non-bias approach that is price driven.
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competitor has a better offer. They just want to sign you up. Not us!
• Ask us how we can provide you with a layer of protection against scammers.
• Stop wasting time taking all those annoying phone calls from energy telemarketers.

Contact: Ed Deczynski, 570-766-7533, Eddeczynski@yahoo.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 

Click HERE to view listing

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

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