UPDATE ON 23¢ GAS TAX NEGOTIATIONS & NJGCA’S POSITION
NJGCA HOSTS SUCCESSFUL EVENT FOR PAC IN EDISON

Last week, it was announced that Senate President Sweeney and Assembly Speaker Prieto had reached an agreement on a gas tax hike proposal, which looked strikingly similar (or identical) to the Sarlo/Oroho plan that NJGCA originally supported. This plan would raise the gas tax 23¢ per gallon and eliminate the estate tax. NJGCA was relieved to see that the elimination of the estate tax was back in the legislation. However, we did write a letter to the Legislature and Governor on Friday, asking them to consider a smaller gas tax increase of 18¢ per gallon, as opposed to 23¢.  You can read the letter by clicking HERE.
 
The reason is due in part to the way that New York calculates their motor fuels taxes.  When this whole process started, and gas prices were higher than they currently are, New York’s gas taxes were 33¢ - 35¢ higher than what New Jersey residents were paying, so we expected that even with a 23¢ gas tax increase, we would still maintain a 10¢ - 12¢ advantage over New York.  With gas prices down at the $2.00 mark, a 23¢ increase would bring our advantage down to less than 5¢ per gallon.  We are very concerned by this, and we have heard the voices of our members united in their call for a lesser tax so that stations in Northern NJ counties can keep the gasoline volume and associated convenience store sales coming from New York customers.
 
However, there is an important point that you need to realize. The 23¢ per gallon tax increase is a far cry from the 40¢ that was originally proposed by the very powerful Democrat, Chairman of the Assembly Transportation Committee.  Through months of hard work and negotiation, we’re now down to 23¢.  Due to the chaos and the inability to get agreement amongst legislators and the Governor, we are facing a whole new batch of bad ideas. One of them includes NOT raising the gas tax at all right now, borrowing funds for two more years as they’ve been doing for the last five, and then in January of 2018, raising the gas tax by 26 cents, with NO TAX CUTS AT ALL! Governor Christie leaves office at that time and there will be no one in the Governor’s chair to stop them.
 
Having opposed any and all gas tax increases for the past 28 years, it is extremely distasteful to find ourselves not opposing the gas tax now.  However, our goal is to not let the perfect be the enemy of the good. A solution to this problem is necessary NOW while we have a Republican Governor forcing Democrats to present proposals with tax cuts included, and a lower increase than they have been calling for. Do you think Democrats will be advocating an elimination of the estate tax in two years when there is a Democratic Governor in the Statehouse and no one talking about “tax fairness”?  As I said a few weeks ago, we must be actively involved in seeking a better solution today, as opposed to waiting for the “perfect” solution in the future, and ending up with a disastrous one.   
 
We have had quite a busy schedule on the road visiting legislators to discuss our position on the gas tax, and we continue to ask them to consider self-serve as one of the possible mechanisms to lessen the blow to motorists’ wallets by about 10¢ / gallon. We get mixed reactions when we bring this topic up, but myself, and our supporters in the Legislature, are determined to work to make self-serve a reality in New Jersey – to provide consumers with convenience and savings at the pump!
 
NJGCA is lucky to have a small committee of members who have helped us to raise funds for our Political Action Committee, which allows us to support our friends in the Legislature who work on issues critical to our members and their businesses.  On Tuesday, July 19^th a group of about 65 business owners gathered in Edison with three legislators from the New Jersey Senate and Assembly to engage in discussion and conversation regarding issues that are critical to our members and their livelihoods. Senators Jen Beck and Steve Oroho (Republicans) were joined by Assemblyman Raj Mukherji (Democrat) as our guests of honor.  The evening was enjoyed by all and successfully furthered our already-positive relationship with our friends in the NJ Legislature. Our primary goal is to make sure that our interests are well-understood and represented in conversations that occur behind closed doors. Below are a few pictures. Special thanks to NJGCA members Kashmir Gill, Roger Verma, Ebbie Ashabi, and Avak Uzatmaciyan for their efforts to bring financial supporters to our annual event.

Senator Jen Beck addresses the crowd outside during the cocktail hour.



The guests take their seats in the dining room for a delicious dinner.



The Host Committee: Kashmir Gill, Ebbie Ashabi, Roger Verma and Avak Uzatmaciyan speak briefly to the guests. 

Finally, as it relates back to the gas tax, next week I want to address the idea of “all monies that go into the TTF being spent on Transportation.” There are myths and untruths surrounding this issue that have been spoken and perpetrated by the press, politicians, and even myself. Next week I want to dispel all of the untruths and get everybody on the same page, since this is a critical part of the conversation surrounding raising the gas tax.
 
Thanks for reading -- See you all next week!

Sal Risalvato
Executive Director

07/27/2016:
NJ Democrats working to recruit Republicans for gas tax plan Christie rejected
State Senate President Stephen Sweeney said Tuesday that Democrats are still courting Republican votes on a tax package to finance New Jersey  road and transit projects, and Gov. Christie's rejection of the plan on Monday hasn't chilled existing support. "I think the votes are still there," Sweeney said. "I do. No one has picked up the phone and told me we lost anybody." State Senate and Assembly Democratic leaders who struck a deal last week to replenish the Transportation Trust Fund need Republican votes to override a gubernatorial veto. Christie said Monday he won't back the tax proposal, which would raise the gasoline tax by 23 cents a gallon in exchange for the elimination of the estate tax and tax breaks for veterans, the working poor and people receiving retirement income.

7/26/2016:
Least bad option is only real choice now on gas tax battle | Moran
The political stalemate that has put a halt to most work on roads, bridges and mass transit in New Jersey shows how dysfunctional Trenton has become since Gov. Chris Christie lost interest in herding the cats in the Legislature and began devoting himself to his national ambitions. The cleanest solution is painful but simple: Raise the gas tax by 23 cents a gallon. Face reality. But that's off the table, thanks mostly to Christie, who torpedoed another proposal Monday.  The few sensible legislators who are pushing a clean hike in the gas-tax – including Assemblyman John Wisniewski (D-Middlesex), Sen. Ray Lesniak (D-Union) and Sen. Sam Thompson (R-Middlesex) – have been overwhelmed by those who insist on adding expensive tax cuts to grease the political deal. This is what Christie does when he doesn't get what he wants: Holds us all hostage. It's not just Christie. Even Democrats are pushing for tax cuts. No one in either party has offered a credible way to cover the cost of that. The state budget is already strained, with education aid frozen for five years, the record-setting debt growing larger, and the pension and health crisis spinning out of control. Tax cuts now? This trip to fantasyland is certain to deepen a fiscal crisis that is already the nation's second worst, behind Illinois. So now the Legislature faces a familiar and unhappy task: Picking the least bad alternative. And that's an easy call. The compromise crafted by Senate President Steve Sweeney (D-Gloucester) phases in tax cuts that worth about $900 million. That's reckless, but the Assembly version is much worse. It would cost nearly twice as much. And of course Christie is pushing the larger tax cut, heedless again of the state's fiscal crisis. Our hope is that legislators rally behind the recent compromise that follows the Senate version closely, and vote to override Christie's expected veto. The Senate version is the lesser of two evils, granted. But we need to get those bulldozers moving again. It is bad enough that 2,000 men and women are losing their jobs due to this stalemate. The economic damage and job loss is certain to grow far worse as this crisis drags.
 
7/26/2016:
Hough Petroleum Seeks to Optimize With PriceAdvantage
Hough Petroleum selected PriceAdvantage software to streamline fuel pricing strategies at its owned and operated convenience stores and gas stations throughout New Jersey. According to PriceAdvantage, Hough Petroleum selected its products based on the software’s ability to centralize critical fuel pricing data and present it in a strategic format, as well as create automated prices changes with price change confirmation from a mobile device. “We know that PriceAdvantage will help us optimize our prices to take advantage of market opportunities,” stated Gary Hough, president of Hough Petroleum. “Additionally, it will provide us with a level of confidence knowing that not only are we making more strategic pricing decisions but I will receive confirmation that those price changes were made when requested.”
 
7/25/2016:
PA tobacco tax hike, new FDA rules threaten retailers
Greater Lehigh Valley retailers are bracing for the impact of a 63% Pennsylvania tobacco tax increase for a pack of cigarettes which could drive the cost of a premium pack to $7.50.  Part of the state’s new $31.5 billion budget, the tax hike – from $1.60 to $2.60 per pack – takes effect on August 1, 2016.  Small-business owners expect fewer cigarette-pack sales and a revenue loss, and smokers may switch to other methods to satisfy tobacco cravings. But other tobacco users – although not cigar smokers – also are getting socked in the new budget. The tax on roll-your-own tobacco has been expanded, and those who “vape” e-cigarettes and other liquid vaporizers could be paying a lot more, as well. Pennsylvania’s budget included a new 40% inventory tax on vapor products, which also now are subject to new, strict federal Food and Drug Administration fees and regulations – changes that could cause some vaping smoke shops and retailers to go out of business.