NJGCA WILL NOT OPPOSE PROPOSED 23-CENT GAS TAX HIKE
WINE & BEER TO BE SOLD IN PENNSYLVANIA GROCERY STORES
7-YEAR ANNIVERSARY OF RIGHT OF FIRST REFUSAL SIGNING

 
Many of you have probably already heard that a 23-cent gas tax hike was introduced this week in Trenton.  Last week, I was fielding phone calls and in extensive discussions with both Senator Sarlo (Chairman of the Senate Budget Committee) and Senator Oroho. As I have been saying for the last two years, an increase in the gas tax is inevitable, and my #1 priority is to make sure that the tax is not applied in a way that is burdensome to retailers. Though there appears to be a looming fight on hand between the Legislature and the Governor, for the first time it also appears that legislators in both parties have reached an agreement on certain core principles that I believe can lead to final passage.
 
Here's what's in the bill now, and I expect this is close to what will eventually pass:

• 11-cent increase in the Motor Fuels Tax (the existing tax is 10.5-cents on gasoline and 13.5-cents on diesel)
• Petroleum Gross Receipts Tax: The current rate of 4 cents/gallon was 2.75% of the retail price of gasoline in December 1990. This will now be changed to 7% of today's retail price, which should be roughly 16 cents (giving us a 12 cent-increase).
• Diesel will also be subject to an additional 3 cent/gallon surcharge.
• Therefore, 11 + 12 = 23-cent increase, which makes our total gas tax now 37.5 cents. This is still 14 cents/gallon less than PA and most places in NY.

Most important to NJGCA is that, despite a last minute, behind the scenes, closed door effort (I was tipped off by several legislators in leadership), there will be NO sales tax on gasoline, which as you know has kept me up at night for two years. The package will also include a three-year phase-out of the estate tax, which will be a huge benefit to anyone with a net worth over $675,000.  If you own your location and your property, this is great news! There's also a NJ income tax exemption for retirement income up to $100,000/year and a charitable contributions tax deduction.
 
Bottom line, based on the inevitability of a tax increase, and on the fact that I made an agreement with the Legislature to not oppose the plan if they kept their end of the bargain NOT to impose a sales tax on motor fuel, and based on the fact that your estates worth more than $675,000 will be exempt from taxation upon your death, NJGCA has agreed in principle not to oppose this plan. The debate is now raging in Trenton so it isn’t clear yet which legislators may run for the hills and abandon any support for the plan that they may already have indicated.
 
The next piece of news I have is an update coming out of Pennsylvania.  A bill to sell wine and beer in PA grocery stores sped through the Legislature and was signed into law, allowing hundreds of hotels, restaurants and grocery stores to now sell wine and beer. We know that there are legislators, several of them in leadership in the Democrat caucus, who are in agreement that changes must be made to NJ's alcoholic beverage license regulations. This is a monumental hill to climb but we will be pointing to circumstances such as Pennsylvania to bolster our case.  Although this conversation with legislators began several years ago, it hasn't gone far, but we expect to further discuss this in the near future. Our ultimate goal is to get convenience stores to be able to sell beer and wine.  However, I want you all to fully recognize how difficult this fight will be. Many business owners have paid hundreds of thousands, if not millions, of dollars for their liquor licenses, and if I were representing those people, THERE IS NO WAY I would let hundreds of other small businesses infringe on my territory and start competing with me for my customers.  I already know that the Licensed Beverage Association will be out in full force opposing our efforts!
 
Finally, I wanted to alert you to the anniversary of Right of First Refusal.  The bill was signed by Governor Corzine on June 10, 2009, so last week was the 7 year anniversary! In that time there have been hundreds of dealers who have been able to purchase their properties and locations and been able to build a business to support their families.  We are so proud of our efforts to support and build small businesses, and I look forward to sharing some more good news with you in the coming weeks regarding a recent success that Right of First Refusal has brought to our members!

Thanks for reading -- See you all next week!

Sal Risalvato
Executive Director

06/16/2016:
What N.J. lawmakers will do in the next 2 weeks that could affect your life
The end of June is always an especially busy time at the Statehouse as lawmakers rush to pass a flood of legislation before their summer recess begins on July 1.  Like students cramming for an exam, the 120 members of the state legislature will not only approve a budget this month, but will also take action to give voters a chance to amend the state constitution, cut and raise specific taxes, and other high-impact endeavors. These big- ticket items are likely to affect most New Jerseyans in one way or another.  Click the link above to read about any of the following issues: the public worker pension amendment; raising the gas tax, cutting the estate tax; raising the minimum wage, one way or another; passing the state budget; and challenging Christie's easing of gun regulations.

06/14/2016:
Retailer's Unusual Action to Stop Robberies
A Minnesota convenience-store owner is taking security in a new direction by not only welcoming armed customers into his store but also actually rewarding them with a 10-cent-per-gallon discount on gasoline. On the heels of robberies at the store in Sauk Rapids, Minn., owner Frank Schwagel posted a sign on the entrance to his Shell-branded store that reads: "Gas discount for law enforcement or people with proof of permit to carry. Ten cents per gallon after 7 p.m. daily."
 
06/10/2016:
Lawmakers Move Against New Overtime Rule
Three weeks after a new federal overtime rule was approved, several legislators are attempting to block the measure. On June 7, Sen. Lamar Alexander (R-Tenn.), chairman of the Senate labor committee, and Sen. Ron Johnson (R-Wis.), chairman of the Homeland Security and Governmental Affairs committee, introduced legislation under the Congressional Review Act to block implementation of the administration's overtime rule, which the lawmakers refer to as the "time card rule." The new rule would lead to workers punching the clock when they come and go from work, and unable to negotiate a flexible work arrangement, according to the senators, who were joined by 44 other legislators as co-sponsors of the legislation. In 2015, the Department of Labor released a proposal to increase the salary threshold under which employees qualify for overtime pay. The department's final rule released last month more than doubles that salary threshold from $23,660 to $47,476. The Congressional Review Act legislation introduced by Sens. Alexander and Johnson would nullify the administration's final rule if passed, and prohibit the administration from issuing a substantially similar rule without congressional approval.