February 13, 2015

Dear NJGCA Member>:

Thank you for reading this week's NJGCA Road Warrior!

Here is what you will find in this edition:

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EXECUTIVE DIRECTOR'S MESSAGE: GREETINGS & SAL-UTATIONS! 

NJGCA GOES TO WASHINGTON DC
FEDERAL GAS TAX, TIRE AGING & REGISTRATION
TAX REFORMS TO SUBCHAPTER S CORPS COULD BE BAD NEWS!
OBAMA PROPOSES NEARLY DOUBLING FEDERAL TOBACCO TAX

As you all should know, myself, Eric and Jacy traveled to Washington DC last week for SSDA's Federal Lobby Day.  We spent a lot of time learning about critical threats to our industry, and we also got the opportunity to participate in meetings with federal legislators and their staff, to voice our concerns.
 
Here are the three main things that we ALL need to keep on our radar:
 
Federal Gas Tax - This is not just an issue on a state level, but on a federal level, too. The US has a Federal Highway Trust Fund, which is funded by the federal gas tax. The money is supposed to be dedicated to maintaining and constructing highways, interstates and bridges but, money is regularly taken from the Highway Trust Fund to pay for other infrastructure projects such as mass transit, railways, etc. Now, it is being suggested that we raise the federal gas tax and turn the Highway Trust Fund into a Transportation Trust Fund, since the government already diverts money out of the Highway Trust Fund to pay for other infrastructure projects. However, if the government would STOP this diversion of funds, we would have plenty of money to fund all road and bridge improvements without having to raise the gas tax. This just goes to show that any government account that has the word "trust" in it, absolutely cannot be trusted. This includes the Social Security Trust Fund, which you are all familiar with, because the government has been stealing out of that for decades.
 
Mandatory Tire Registration & Tire Aging - The Tire Industry Association was a partner in organizing the Lobby Day in Washington, so we discussed two issues regarding tires. As it relates to mandatory registration, I don't know about you, but I can remember when every single tire that I sold required the tedious and monotonous completion of a registration form.  This law was later amended so that the registration of tires was voluntary, however, there is a big effort currently underway to go backwards and require mandatory tire registration. The mandatory registration proposal would subject tire retailers to potential fines of $1,000 - $10,000 per tire for every tire not registered, up to a maximum fine of $800,000 per location.
 
Retailers are also facing potential tire aging legislation. We have addressed this issue in Trenton on the state level, and the proposal in Washington DC is similar to what is being considered here. The date of manufacture is stamped on the inside of all tires, but there are still efforts in both DC and Trenton that would require retailers to place a physical label on the outside of the tire. If you have a tire on your shelf that is greater than ten years old, regardless of whether the tire has never been used before, you are subject to onerous and costly regulations and consumer notification requirements.
 
Finally, last but not least, I was shocked to hear about a proposal that came from Republican House Ways and Means Committee Chairman David Camp last week. The Chairman proposed various tax reforms, one of which would impact all members whose businesses are organized as a Subchapter S Corporation (which I believe is MANY of you). I'm most concerned about the possibility that this could change the way income passes through your business. The new proposal would take all surplus money that the business made in the past year (after paying employee salaries, taxes, insurance premiums, etc), and mandate that 70% of it be passed through to the business owner as payroll, instead of being considered a dividend, like it would be if you were Exxon or Mobil. Once the money is 'payroll', the business must pay taxes on it, the owner must report it as income and pay taxes on it, and the additional amount must also be reported to workers compensation etc. As you can see, this has the potential to have serious repercussions for my members.  We are continuing to learn more about this issue and will keep you informed.   
 
The final federal issue that I wanted to bring to your attention is the fact that President Obama's recently-announced budget includes a proposal to raise the federal tobacco tax by 94 cents, from $1.01/pack up to $1.95/pack. His effort to nearly double the tax is intended to help fund health insurance for low-income children. Taxes on other tobacco products also would increase. A similar measure was included in Obama's proposed budget for fiscal year 2014. That proposal called for a 94-cent levy increase on cigarettes, with a comparable raise in the tax on all other tobacco products, to help fund pre-K programs for 4-year-olds. The move ultimately fell flat. We will continue to monitor this proposal as well.
 
As with all issues that we deal with on the local, state and federal levels, we will let you know if your action/participation is required.  Given the seriousness of the issues facing our country and our federal government, I am considering organizing a trip of our own to Washington DC, and I will surely be discussing this with you in future Road Warriors and extending the invitation for you all to join me.

Well, I feel like I put enough on your plates this week -- we don't need to discuss any additional threats to your business, so I will skip the usual stuff that's going on in Trenton, as I really don't have any important updates at this time.  Please see some pictures from our trip to Washington DC below.

Congressman Steny Hoyer, House Minority Whip (second ranking member in House Democratic Leadership) addressing the group.

The group being addressed by two newly-elected Congressmen serving on the House Transportation and Infrastructure Committee.

Eric, myself and Jacy at the evening reception with House members and staff.

That's all for now!  Thanks for reading -- See you next week!

Regards,
Sal Risalvato
Executive Director

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

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!!

CLASSIFIEDS! -- FOR SALE & HELP WANTED ADS 

FOR SALE: EMISSIONS MACHINE AND GAS BENCH --

This machine has all the options and can be used on cars and trucks. 

Includes: OBD, gas cap, gas bench, remote scanner, computer system, finger print scanner and scan tech. Like new condition! Just a little dusty.

$7,000 or best offer. Call Bill at 201 933 3535
  
   

NEWS AROUND THE STATE: THE NEWS YOU SHOULD KNOW

02/12/2015:
Electric car charging stations on N.J. toll roads inch closer to reality
Need to top off the Tesla or power up the electric Prius? A bill that's headed to the state Assembly for a vote may make it easier to recharge or fill up electric and natural gas powered cars at toll road service areas. The bill, sponsored by Assemblyman Tim Eustace, D- Bergen-Passaic, would require the state's two toll road authorities provide compressed or liquefied natural gas refueling and electric car recharging stations at rest areas along the Turnpike, Parkway and Atlantic City Expressway. It was approved by the Assembly Transportation and Independent Authorities Committee on Thursday by a vote of 7-3 with three Republican members voting against it. The bill now goes to the full Assembly for a vote. Under the proposal, there would be at least four fueling and charging stations each on the Parkway and Turnpike and two on the Expressway. However, toll payers wouldn't be on the hook for the cost, since at least one electric car manufacturer has expressed interest about installing recharging stations. Several Republican lawmakers expressed concern about the cost.  
 
02/12/2015:
NJ Congressman's tax plan would be a real gas for Jersey drivers
Congressman Scott Garrett has an idea that would end much of the over- regulation that citizens face -- and free up a lot of money for transportation as well.  Garrett, a conservative Republican who represents the northwest corner of the state, is sponsoring a bill that would accomplish both those ends through the simple expedient of turning the federal gas tax into a state tax. Here's how it would work: Currently the federal government collects a tax of 18.4 cents for every gallon of gas sold in the United States. That tax money then goes to Washington, where bureaucrats sort it into categories and then send some of it back to each state with all sorts of strings attached. Most of those strings were put there by people we New Jerseyans sent to Congress, such as the 55-mph speed limit (the late Congressman Jim Howard), and raising the drinking age (the late Senator Frank Lautenberg). In both cases, the federal government lacked the authority to impose such laws unilaterally. Instead, they were enforced via the threat of withholding transportation aid to any state that refused to adopt them. Garrett came up with an innovative way to return decision-making power to the states.  His bill stipulates that any state that raises its gas tax can have the federal gas tax reduced by the same amount. The incentive for most states would be to raise the state tax by the full 18.4 cents. The price at the pump wouldn't change but now state officials would have that revenue to spend on transportation in any way they desire.
 
02/11/2015:
NJ legislative leaders meet with Christie on transportation funding
Senate President Stephen Sweeney and Assembly Speaker Vincent Prieto spent over an hour in the governor’s office today, but they emerged from the meeting with no deal to announce on an extension of New Jersey’s ailing transportation trust fund or the possibility of increasing the state’s gas tax. Both legislative leaders said little as they came out of Christie’s office in the State House. Prieto, D-Hudson, termed the talks with the governor as “good dialogue,” while Sweeney, D-Gloucester, said the contents of the discussions would be kept private. They politely declined further comment. Spokesmen for the governor also did not immediately respond to a request for comment on today’s meeting. Both legislative leaders and Christie, a Republican, have previously said they have been having ongoing conversations about how to maintain transportation spending as New Jersey is facing a July 1 deadline for a new source of funding for the transportation trust fund. Their meeting came as New Jersey Transportation Commissioner Jamie Fox has started closing bridges as part of a statewide safety-inspection initiative. Several lanes on the Route 3 bridge connecting East Rutherford and Secaucus have been closed as part of that effort, with a complete closure planned for a 24-hour period this weekend.
 
02/11/2015:
Princeton considers plastic bag fee of up to 25 cents, would be first N.J. town with fee
Princeton is considering a fee of 10 to 25 cents for plastic or paper bags used by shoppers, Mayor Liz Lempert said. A local environmental group suggested the fee, and the town is investigating whether Princeton can impose the local charge, Lempert said. If enacted, Princeton would be the only town in NJ to adopt such an ordinance, said Mike Cerra, director of government affairs with the State League of Municipalities. Lempert asked Princeton attorney Trishka Cecil for her legal opinion on the proposal, she said. Cecil is researching the issue, she said Tuesday. The proposed ordinance would require customers to pay between 10 and 25 cents per bag, with the money going back to the merchant or company. Reusable or already recycled paper bags would be distributed for free instead. Under the proposal, merchants would use the fee to purchase reusable bags for customers and to keep records on the process, he said.

MEMBER BENEFIT PARTNER MESSAGE BOARD:

TMP Energy Solutions
Another Way to Save on Your Energy Bills

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.