GAS TAX INVENTORY FORMS
BALLOT QUESTION #2 ON DEDICATION OF TTF FUNDS
MARKETPLACE ISSUES DUE TO SUPPLY DISRUPTION
NJGCA GASOLINE AND C-STORE SUMMIT – NOVEMBER 30^th

I’m sure you’re all sick of hearing about the gas tax increase … I know I’m sick of talking about it, but there are a couple things we need to notify you about.  

1.  Your inventory report is due back to the State on December 15th.  Click HERE to access the form.  I received a question about whether "Taxpayer Name" is the name of the business owner, or the name of the business.  The business name belongs on the form, in addition to the business address.

2.  The floor stocks tax form (and payment) is due to the State on February 1, 2017. – many of you have contacted me to say that the 26.6¢ listed on line 10 of the form is incorrect… and you would be right, if there wasn’t a line underneath it that instructs you to deduct the 4¢ you already paid for Petroleum Gross Receipts tax. So yes, instead of multiplying the gallons of gas that you have in inventory by the ADDITIONAL new tax of 22.6¢, they are making you multiply by 26.6¢ and then subtract the 4¢ that you already paid. But, since 26.6¢ - 4¢ = 22.6¢, the form is actually correct, albeit confusing.  That form is due back to the State on February 1, 2017 and we will help you understand everything and fill it out if needed.  With any questions, do not hesitate to call NJGCA at 732-256-9646.  CLICK HERE to obtain the form.  
 
Additionally, we have gotten phone calls about when the sales tax reduction goes into effect.  On January 1, 2017, there will be a reduction from 7% to 6.875%.  On January 1, 2018, it will decrease to 6.625%. So, for now, everything remains the same.  We’ll send you reminders as we get closer to the first of the year.  Also, on January 1, 2017 the minimum wage will increase from $8.38 to $8.44 per hour.  Don’t forget to make that change, too!
 
Now, we also have to address Ballot Question #2, as there has been SUBSTANTIAL talk on the issue, and serious discrepancies about what the ballot question will do, and the implications of each position.  We previously explained our position in the Voter Guide issue of the OTR, and our position remains that you should vote YES on question #2.  On the surface, question #2 constitutionally guarantees that all of the motor fuels taxes that are collected are dedicated in their entirety to the Transportation Trust Fund (TTF).  A person voting NO on question #2 would be allowing those funds to be used for general purposes wherever and whenever there is a hole in the State budget.  However, it goes further than that.
 
Voting YES on question #2 grants the State the authority to continue borrowing in order to get all of the money necessary to fix roads and bridges and fund the TTF.  You see, the increase of 22.6¢ per gallon didn't fix the problem in its entirety.  It would take about 45¢ per gallon for the State to avoid additional borrowing and the accumulation of more debt and many Democrats know that. (This is a major reason to fix the problem now and avoid kicking the can down the road until a new governor is inaugurated, since many in the legislature, including Democrat Leadership, were in favor of a 40¢ increase with NO accompanying tax cuts).

Opponents of Question #2 claim that voting NO will force the Legislature to go back to the drawing board, and possibly even result in the repeal of the 22.6¢ tax increase. In reality, they will simply amend the law to allow borrowing through another method, likely with higher interest rates. If Question #2 were to fail, all that would happen is the debt would increase even further, taxes would increase (including the gas tax, again), and future politicians would use some of the fuel tax revenue to pay for whatever unnecessary government program they want.  Believe me, if there was a way to fund the TTF via spending cuts and prevent further borrowing, we would have already done it. 
 
Since this is the last message before Election Day, I felt that I owed it to my members to address the issue and explain some of the misinformation that is circulating among the media and the public.  After a thorough analysis of a very technical problem (one that even State officials don’t fully understand or agree upon), I remain of the opinion that the best public policy is to vote YES on question #2 and dedicate all motor fuels taxes to the Transportation Trust Fund.  Please, do not hesitate to reach out if you are hearing things on the news that are confusing you or raising any questions.  There is a lot of misinformation which we are trying to correct.
 
Next, you all may have realized a SECOND jump in prices overnight Tuesday, as an explosion on the Colonial Pipeline caused quite a ripple effect.  We saw an almost immediate reaction in the Futures and commodities markets and I had two members call to say that their costs went up 11¢ per gallon for the Wednesday fuel deliveries.  I also passed a Wawa which was out of gas on Tuesday evening, possibly a combination of Monday’s spike in demand before the 22.6¢ gas tax increase, and a result of difficulty getting a delivery due to the pipeline explosion. On top of the gas tax increase we just saw on Tuesday morning, this is clearly painful to both retailers and motorists. We will continue to monitor the situation and report on what we are seeing.  Please also let us know what you are experiencing with your suppliers.
 
Finally, a quick update: Unfortunately, we must cancel the Breakfast meeting scheduled for November 9^th in East Brunswick. First, an unavoidable conflict came up which we have no ability to reschedule. Secondly, the staff is in overdrive planning a successful Gas Station and C-Store Summit on November 30^th in Monroe Township.  Anyone interested in the East Brunswick Breakfast Meeting should definitely be at the Summit on November 30^th. The event will be just 15 minutes from the diner where the Breakfast Meeting was scheduled to be held, and will provide you with much more information and knowledge than we could cram into the short-but-sweet Diner Tours.  The Summit will provide coffee, a light breakfast, lunch and dessert, in addition to straight-from-the-source information that will help you stay ahead of the curve.  For a sneak peek at the second invitation that just went out in the mail on Wednesday, click HERE.  You can also register online directly by clicking HERE. 

Thanks for reading -- See you all next week!

Sal Risalvato
Executive Director 

11/02/2016:
Will lawmakers end ban on self-serve gas to offset tax increase?
Will a 23-cent increase in the gas tax prompt lawmakers to repeal the state's prohibition against drivers pumping their own gas to ease the pain at the pump? New Jersey and Oregon are the only two states which ban drivers from pumping their own gas. However, legislative leaders on both sides of the aisle expressed strong support for keeping the ban in place on Wednesday. Most say that repealing the law would not be enough to help drivers who are feeling the sting of higher gas prices after the tax increase took effect on Tuesday.  State Senate President Stephen Sweeney reiterated his earlier position that he would not post a bill repealing the self-serve ban, by offering a one-word comment, through a spokesman. “No.”  Among the issues in favor of keeping the self-serve ban in place are job loss and the loss of convenience to drivers, he said.  Potential savings from allowing drivers to pump their own gas wouldn't totally offset the tax increase, said an economic expert.  **While it is encouraging to see the media talking about the possibility of self-serve, it’s clear that we still have a lot of work to do to convince legislators. Click the link above to continue reading**
 
11/01/2016:
Gas Prices Jump and Disruptions Occur after Pipeline Fire
Gasoline futures soared at one point Tuesday to their highest level in eight years after a major fuel artery to the Atlantic Coast was severed, threatening to cause gas shortages across much of the Southeast. The outage on the Colonial pipeline, a 5,500-mile system that supplies gasoline, diesel and jet fuel to 13 states from Houston to New York, follows a Monday explosion and is the second shutdown in two months. Colonial's pipeline system carries 2.5 million barrels of fuel a day, supplying about one-third of the gasoline consumed on the East Coast. Gasoline futures on Tuesday shot up as much as 8% on the New York Mercantile Exchange. Those gains faded early in the afternoon after Colonial said the diesel pipeline resumed operations at midnight and that the gasoline line is scheduled to restart Saturday, but that could change after the company gets more information. On Tuesday, gasoline for December delivery settled up 4.6%, to $1.4841 a gallon. Diesel for December delivery gained 0.9%, to $1.5169 a gallon. Colonial said it would work with shippers to send gasoline through the diesel line, which also ships jet fuel.
 
10/31/2016:
Chip-Enabled Cards Are Hurting Small Businesses
Carpe Diem in Hoboken is among the thousands of businesses still relying on swiping customers’ charge and credit cards at the point of sale instead of switching to the more secure chip-enabled cards. Small businesses say chip reading equipment is expensive. Nevertheless, owner Joe Jones says he’s making a change and soon. “It’ll be somewhere in January or February that my point of sale company will be giving us new equipment to facilitate the new chip,” Jones said. To encourage the switch to the chip-enabled cards, a year ago credit card companies and banks shifted the fraud liability to retailers who had not upgraded. Instead of swiping cards with a magnetic stripe, customers must dip the chip cards that generate a specific code for each transaction to make it harder to counterfeit. The president of the New Jersey Retail Merchants Association, John Holub, says the roll out has been clumsy. “The credit card industry really has done a horrible job rolling this out,” said Holub. “A tremendous amout of my members have spent a considerable amount of resources, time and energy, to implement this new technology and unfortunately the credit card companies have been really slow in certifying all the hardware we’ve put in our stores and it’s really  created a lot of confusion not only for retailers but the consumers as well.”